Theresa May '˜told bankers about Brexit dangers before ref'

The Prime Minister told investment bankers at an event at Goldman Sachs before the June 23 referendum she was concerned businesses would leave if Britain quit the bloc.

She has since said that Britain should have maximum freedom to trade in the single market but not at the expense of immigration controls.

Mrs May, who was home secretary at the time, was criticised by members of David Cameron’s team for keeping a low profile in the campaign.

In a recording leaked to the Guardian from the event on May 26, she says: “I think the economic arguments are clear.

“I think being part of a 500-million trading bloc is significant for us. I think, as I was saying to you a little earlier, that one of the issues is that a lot of people will invest here in the UK because it is the UK in Europe.

“If we were not in Europe, I think there would be firms and companies who would be looking to say, do they need to develop a mainland Europe presence rather than a UK presence? So I think there are definite benefits for us in economic terms.”

Andrew Gwynne, shadow minister without portfolio, said: “As if we needed it, this recording is cast-iron evidence of how Theresa May and other senior Tories have been saying one thing in private about the economic impact of Brexit, and another in the comfort of Tory conference halls.

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“It’s plain that she recognises what a disaster it would be for Britain to lose access to the Single Market, so why doesn’t she be honest with the British people and say how she plans to retain it?”

Liberal Democrat leader Tim Farron said: “It is disappointing that Theresa May lacked the political courage to warn the British public as she did a group of bankers in private about the devastating economic effects of Brexit.

“But far more disappointing is that now she is supposedly in charge, she is blithely ignoring her own dire warnings and is prepared to inflict an act of monumental self-harm on the UK economy by pulling Britain out of the Single Market.”

Labour’s Phil Wilson, an Open Britain campaign supporter, said: “It’s good to know that privately Theresa May thinks what many of us have been saying publicly for a long time - leaving the Single Market would be bad for businesses and for our economy.

“Now she is Prime Minister, Theresa May is in an unrivalled position to act on her previous concerns - starting by putting membership of the Single Market at the heart of her Government’s negotiating strategy.”

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