Lib Dem conference: Vince Cable warns vote to stay in Europe could scare off investors to Britain

Business Secretary says Ukip has led the Tories 'into the cul-de-sac of the EU referendum'

Vicne Cable implied that a slight victory for Europhiles would create uncertainty for inward investors (PA)

Business secretary Vince Cable has warned that even a narrow referendum vote in favour of the UK remaining part of the EU would "scare off" overseas companies from investing in Britain.

In a speech to the Liberal Democrat Spring Conference in Liverpool this afternoon, Mr Cable implied that a slight victory for Europhiles would create uncertainty for inward investors who would fear a second referendum shortly afterwards. The pro-EU Lib Dems have not committed themselves to an in-out EU referendum, though it is understood that several MPs would risk a vote to settle the argument for a generation.

David Cameron is committed to a vote in 2017, but Mr Cable said that this was because Ukip had led the Tories "into the cul-de-sac of the EU referendum". The Prime Minister is concerned that he will lose votes to Ukip in May's generation, and is trying to outflank Nigel Farage's EU secessionists by pledging a plebiscite.

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Mr Cable said: “If the result is negative, or even close, it will leave Britain in a no-man's land: diminished, marginalised, and irrelevant.”