EU referendum: George Osborne attacks Boris Johnson's decision to back Out campaign

'A British exit would hurt people’s jobs, livelihoods and living standards – it’s deadly serious'

Many are concerned over the detrimental effects of Brexit (Reuters)

The campaign to keep Britain in the European Union received a major boost yesterday after the G20 group of the world’s most powerful countries warned that a Brexit vote would cause a “shock to the global economy”.

George Osborne, in China for the meeting of global finance ministers, said the warning exposed the danger to living standards and the economic recovery.

He also launched a thinly veiled attack on the London Mayor Boris Johnson over his decision to back a leave vote – insisting that the decision was not “some amusing adventure into the unknown”.

Mr Johnson has taken a back seat since revealing he would campaign to leave the EU last week. The Independent on Sunday understands he is being urged not to back the Eurosceptic “Vote Leave” campaign amid growing Tory fears the rival Ukip-backed group “Grassroots Out” has taken pole position in the race to be designated the official Brexit body by the Electoral Commission.

Close allies of the London Mayor have warned him in private that he should not allow himself to become the “plaything of rival campaigns” who are locked in a fierce and increasingly bitter campaign to win official designation in order to receive public funds for the referendum campaign.

All six cabinet ministers who publicly back Brexit have joined the Vote Leave campaign run by Michael Gove’s divisive former aide Dominic Cummings. But Mr Johnson has kept his distance.

The London Mayor’s position was, however, lambasted by Mr Osborne. “A British exit would hurt people’s jobs, livelihoods and living standards – it’s deadly serious,” he said. “It’s my responsibility as Chancellor to make it clear to people what the economic risks are – and that we are stronger, safer and better off remaining in a reformed EU.”

The risk of a British exit from the European Union was included in the G20’s final communique released by finance ministers in Shanghai, China on 27 February.

The Italian Finance Minister, Pier Carlo Padoan, said that a decision by Britain to leave the EU would be classified as “a powerful geopolitical shock”.


 Grassroots Out at Ukip’s conference in Llandudno on Saturday 
 (AFP)

Mr Osborne welcomed the public warning: “Finance leaders and central bank governors of the world’s biggest economies have raised serious concerns about the risks posed by a UK exit from the EU. They have concluded unanimously today that what they call the shock of a potential UK vote to leave is among the biggest economic dangers this year.

“If that’s their assessment of the impact on the world economy, imagine what it would do to the UK.”

However, the former Conservative chancellor Lord Lawson ridiculed the G20 warning. The Vote Leave chairman said: “The notion that the UK leaving the EU would cause an economic shock is absurd. Fifteen of the members of the G20 are outside the EU, and that hasn’t caused an economic shock. Indeed, most of them are doing better than most of the members of the European Union.”

A source close to Mr Johnson insisted that he respected Mr Cameron and Mr Osborne – but just thought they were “wrong”. The source added that Mr Johnson would “throw himself into the campaign” for a vote to leave the EU but “no decision had been made” yet over what role he would take.

The London Mayor met the Justice Secretary, Michael Gove – a key member of the Vote Leave campaign – last week and will hold talks with him again in the next few days.

Sources in Vote Leave said they were not worried about the Mayor’s loyalties, and insisted they were confident of being given the designation as the “official” leave campaign.

A spokesman said: “We are confident that we will get the designation because of our cross-party nature and the professional campaigning requirement. We wish all groups well.”

But the group’s cross-party support is currently limited to the former Labour foreign secretary Lord Owen – now a crossbench peer –and Labour MP Graham Stringer.

The Government will set out the specific criteria for deciding how the Electoral Commission should decide which group is given official campaign status in Parliament tomorrow.

The rival out campaigns – Vote Leave and Grassroots Out – will have four weeks to apply for official designation. The Electoral Commission will then have two weeks to decide before announcing its choice on 14 April. Tory MPs believe this could give the Government a crucial six-week head start on the leave campaign because of the infighting between the rival groups.

But they are also increasingly concerned that the Vote Leave campaign is too narrowly Conservative to win official status.

Grassroots Out is backed by Ukip’s Nigel Farage, Respect’s George Galloway and Labour’s Kate Hoey. It has also been supported by Tory MPs Peter Bone and Tom Pursglove.

A source close to Mr Johnson said: “The campaign designation isn’t until April 14, which means the Government can just plough ahead, promoting its own policy.

“Boris must not become the plaything of rival campaigns. He would be wise to keep clear of the big two campaigns. They are clearly riven by ego.”

The source dismissed the impact of the six Tory cabinet ministers who joined the Vote Leave campaign. “The designation goes to the most broad-based body. Six ministers all going to Vote Leave will hamper its chances more than boost it.”