Carney warns of recession if UK opts for Brexit with Yorkshire businesses torn on vote

Bank of England governor Mark Carney
Bank of England governor Mark Carney
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The Bank of England’s Governor Mark Carney has warned that Britain could be forced into “technical recession” if it leaves the EU.

Supporters of EU withdrawal accused the Governor of risking a self-fulfilling crisis, as the London markets fell on the Bank’s warnings of depressed growth, increased inflation and unemployment and a fall in the value of the pound if Britain votes for Brexit on June 23.

Brexit debate

Brexit debate

But Prime Minister David Cameron insisted it was the Bank’s job to warn of risks to security. And he accused the Leave camp of “celebrating insecurity” after prominent backer Peter Hargreaves said the stimulus provided by uncertainties outside the EU would be “fantastic”.

Speaking to reporters following the publication of the latest quarterly inflation report from the Bank’s Monetary Policy Committee, Mr Carney said a recession - two quarters in a row of falling output - was a possible outcome from a vote to leave the EU in the upcoming referendum.

The news comes a study by Yorkshire law firm Shulmans claimed that the remain campaign needs to make clear the financial benefits of voting against Brexit or risk defeat.

The solicitors’ head of corporate, Andrew Bradley, surveyed almost 150 individual Yorkshire businesses who said that of all the issues surrounding the referendum, hard facts with regard to the cost of pulling out – or staying in – were still lacking, and both camps needed to address this matter with urgency.

Andrew Bradley, Head of Corporate Finance at Shulmans Solicitors in Leeds

Andrew Bradley, Head of Corporate Finance at Shulmans Solicitors in Leeds

When asked to agree or disagree with the statement “the cost of the proposed Brexit will be significantly more than staying in” nearly 35 per cent of businesses admitted they didn’t know. Almost 41 per cent said pulling out would cost more than staying in, and nearly 25 per cent disagreed, saying it would not.

Mr Bradley said: “It seems lack of genuine hard facts is the major bugbear for many of our clients. Questions about the Brexit economy all remain largely unanswered. One potential explanation is that people don’t actually know what the business environment would look like should we come out of the EU.”