David Cameron suffered another blow in his quest to keep Britain in the European Union yesterday when a former Tory leader claimed his renegotiation had failed.
Michael Howard, one of the prime minister’s former mentors, came out in favour of a so-called Brexit to “shake Europe’s leaders out of their complacency”.
However, Chancellor George Osborne warned that leaving would cause a “profound economic shock” as he met with other G20 finance ministers in China.
He said: “You have seen the value of the pound fall and it reminds us all this is not some political parlour game, but about people’s jobs, their livelihoods and living standards.”
The intervention sparked fury in the House of Commons where Eurosceptic MPs criticised Mr Osborne for commenting on the future direction of the exchange rate.
His assertion was also disputed by pro-Brexit Energy Minister Andrea Leadsom, who called a profound economic shock “unlikely”.
She added: “I think it is unthinkable that Europe would somehow stop trading with the UK were we to leave the EU.”
In the chamber, Tory Philip Hollobone scorned Mr Osborne’s “spin” and accused the UK Government of being afraid of commissioning an independent assessment of the costs and benefits of EU membership.
But Downing Street confirmed a series of government papers, assessing these and other issues, would be published “over the coming weeks”.
Meanwhile, Willie Walsh, chief executive of International Airlines Group, which owns British Airways, has denied a Brexit would have a “material impact” on the business.
His comments came after rival airline boss, Ryanair’s Michael O’Leary, said earlier this week that he would actively campaign to keep the UK in the EU.
Writing in a national newspaper, Tory peer Lord Howard said Britain “would be sorely missed” if it quit the EU and suggested that “there would be a significant chance that they would ask us to think again” if voters backed Brexit.
He added: “It is not his (the PM’s) fault that those efforts met with failure. It is the fault of those EU leaders so mesmerised by their outdated ambition to create a country called Europe that they cannot contemplate any loosening of the ties which bind member states.”
In response, Mr Cameron’s official spokeswoman said the PM – who has expressed disappointment at London Mayor Boris Johnson and Justice Secretary Michael Gove’s decision to back the Out campaign – had “great respect” for Lord Howard.
But she dismissed suggestions that, in the case of a vote to leave, Mr Cameron might delay the launch of withdrawal negotiations in the hope of receiving requests from other member states for the UK to reconsider.
The PM is due to visit Scotland next week to put the case for staying in the 28-member bloc.