LEAVING the EU without a deal could be disastrous for Britain's economy, a new report claimed.

The most recent forecast by the government's independent forecasting body into the effects of a no-deal situation estimates that the economy would shrink by two per cent, push unemployment above five per cent and cause house prices to drop by around 10 per cent.

The Officer for Budget Responsibility said even a "benign" no-deal Brexit would cause a year-long downturn that would increase borrowing by £30bn a year but "a more disruptive or disorderly scenario could hit the public finances much harder."

Coun Jim Robbins said: "I’m increasingly concerned about the lack of preparations for a no-deal Brexit. It is clear that the EU countries have put in place sensible precautions that just aren’t happening in the UK.

"Businesses are very sceptical, with reason, about taking politicians words seriously.

"I’m sure that the lies and fantasies that Brexit-supporting politicians have been spouting will continue for some time until they crash into reality in 100 days if there is a no-deal Brexit."

OBR chairman Robert Chote said: “The big picture is that heightened uncertainty and declining confidence deter investment, higher trade barriers with the EU weigh on domestic and foreign demand, while the pound and other asset prices fall sharply."

“These factors combine to push the economy into recession.”