Chancellor Osborne said Brexit would cost jobs, increase prices and damage living standards in Britain.
Having looked at the evidence, a vote to leave the European Union would create an economic shock to the United Kingdom, according to George Osborne.
Osborne warned against Brexit saying people could face higher borrowing costs if voters decide to leave the EU in a referendum in June.
“The Bank of England is independent and it makes its decisions on interest rates. But the overwhelming view of the experts here in Washington is that if Britain leaves the EU, prices would go up and there would be instability in financial markets.”
“That means it's likely that mortgage rates would go up, families would pay the price of Britain leaving the EU,” he added.
The chancellor warned the economy would significantly worse off if it backs Brexit. According to a treasury study, the economy would shrink by 6% by 2030, which would cost every household the equivalent of £4,300 a year.
In a Times article the chancellor wrote:
“The conclusion is clear for Britain’s economy and for families – leaving the EU would be the most extraordinary self-inflicted wound.”
George Osborne and Prime Minister David Cameron have been trying to convince voters to choose to stay in the EU. However, opinion polls have shown voters are split almost 50-50.
Osborne believes that the decision to leave the EU would be a big leap in the dark.
“Britain will be stronger, safer and better off inside a reformed European Union.”
Moreover, Osborne diverted the claims regarding the 18 billion pounds black hole the government is facing in its finances, saying there were economic issues being felt worldwide.
He said the UK needed to live within its means to withstand economic shocks.
"My message in this Budget is that the world is a more uncertain place than at any time since the financial crisis and we need to act now so we don't pay later,” Osborne added.