Jeremy Corbyn rubbishes George Osborne's claim that Brexit would cause recession

The Labour leader however said there were other good reasons to stay in the EU

Jeremy Corbyn has cast doubt on claims by the Remain campaign that leaving the EU would cause a major recession.

The Labour leader, who supports staying in the EU, said the predictions of Brexit causing economic cataclysm were from “the same George Osborne” who had made a number of other incorrect economic predictions.

Despite rejecting the economic forecasts Mr Corbyn said there were other good reasons to remain in the EU – such as environmental regulations, human rights and workers’ rights.

“Just over a week ago George Osborne claimed that the British economy would enter a year-long recession if we voted to Leave,” he said.

“This is the same George Osborne who predicted his austerity policies would close the deficit by 2015. That’s now been rescheduled to 2021 – it’s the old five-year card trick of George Osborne.

“It’s the same George Osborne who said the British economy would be ‘carried aloft by the march of the makers’ – yet the manufacturing sector has stagnated ever since, and manufacturing employment declined.

“The biggest risk of recession in this country is from a Conservative government that is failing on the deficit and the debt and failing to rebalance the economy and failing to boost productivity.”

Last month the Chancellor said Brexit would trigger a “DIY recession”, basing his claims on Treasury forecasts. Civil servants at his department had predicted that GDP would be 3.6 per cent lower if the UK left the bloc.

The Treasury economists stand alongside the Institute for Fiscal Studies, the OECD, the IMF, and the Bank of England as warning of the dire economic consequences of leaving the EU.

Mr Corbyn said he wanted to remain and reform the EU, arguing that the bloc should “strengthen workers' rights across Europe and prevent the undercutting of wages”.

He said he would also push for the EU to meet challenges posted by migration, end pressure to privatise public services, democratise its institutions and push for other reforms “to ensure we generate prosperity across Europe to the benefit of all”.

He also said he would reject the TTIP trade treaty between the EU and the United States.

In the Remain camp, Mr Corbyn is not alone in questioning the Treasury’s forecasts. Former Scottish First Minister Alex Salmond made a similar claim on a BBC youth debate event last month, arguing that predictions of “apocalypse” were not accurate.

Mr Corbyn made his comments at a speech in central London on the future of the European Union.

The Labour leader delivered the address the same morning as GMB union general secretary Tim Roache claimed he was not doing enough to campaign for EU membership.