Project Fear hits ‘hysterical’ new levels as Darling warns Brexit will trigger another economic crash
Labour's former Chancellor claims similar 'dark clouds are gathering on the horizon' as they did before 2008 crisis
THE Project Fear campaign to keep Britain in the EU will hit “hysterical” new levels today as Alistair Darling warns Brexit could trigger a repeat of the 2008 economic crash.
The Labour former Chancellor – who was at the helm as the UK economy went into meltdown eight years ago – will use a speech to claim similar “dark clouds are gathering on the horizon”.
In the most doom-mongering prediction yet by campaigners who want the UK to remain in the Brussels club, Mr Darling will say: “The single most important determinant of the health of our economy is confidence, and it is waning as the risk of leaving comes into focus.
“We know what happens when confidence plummets. We saw that in 2008 and we are still living with the consequences of the global financial crash.
“Confidence remains low and uncertainty is making that worse.”
Mr Darling’s claim marks the start of a huge effort by remain campaigners to put the economy at the centre of the EU referendum battle ahead of June’s In-Out referendum.
They were boosted yesterday as the Bank of England said uncertainty around the result has already begun hitting the economy as firms hold back investment – and warned it could curb growth figures this year.
And research by Frontier Economics today shows trade could fall by £92billion a year if we quit the EU and strike a Canada-style trade deal.
But Mr Darling’s strident warning was dismissed as “desperate” by campaigners pushing for Britain to leave on June 23.
Tory MP Jacob Rees-Mogg, a member of the Commons Treasury Committee, told The Sun: “Mr Darling’s claim is completely ridiculous.
“The 2008 crash was caused by a contraction of the credit market because of decades of bad lending policies epitomised by Northern Rock.
“What is being talked about with Brexit it a little bit of volatility in the exchange rate markets. The two are in no way comparable.
“The remain campaign are beginning to sound a little desperate.
“They started off with modest scare stories and are now undermining their case with the hysteria of their claims.”