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EU referendum: Labour warns of Brexit emergency budget EU referendum: Labour claims Brexit could bring £18bn cuts
(about 2 hours later)
Leaving the European Union would lead to an emergency budget, further cuts in public spending and tax rises, senior Labour figures will claim. Leaving the EU could lead to £18bn of spending cuts and tax rises with the Tory government forced to hold an emergency Budget, Labour has claimed.
Party deputy leader Tom Watson and shadow cabinet colleagues will make the warning on Friday. The party is stepping up its campaign to get Labour voters to vote to stay in the EU in 23 June's referendum.
Shadow home secretary Andy Burnham has said the Remain campaign faces the "very real prospect" of defeat. Shadow Home Secretary Andy Burnham warned there was a "very real prospect" of Brexit.
But Labour MP John Mann has declared his support for Brexit, suggesting a "people's revolution is under way". Labour MPs John Mann and Dennis Skinner have both rejected the party's official position and joined the Out campaign.
Labour veteran Dennis Skinner has also come out in favour of the UK leaving the EU. Mr Mann said Labour voters disagreed with the party leadership on the EU issue and a "people's revolution is underway".
Meanwhile, in other referendum campaign developments: BBC political editor Laura Kuenssberg said Labour's Remain campaign was "going up a gear" amid deep fears in the party about what they've been hearing on the doorstep. She said several senior figures had told her they were genuinely worried that many Labour voters would vote to leave the EU.
Later on Friday, Mr Watson and other Labour party figures will be presenting figures from the Institute for Fiscal Studies, suggesting £18bn of spending cuts and tax rises would be in the pipeline in the event of the UK leaving the EU. Labour's deputy Tom Watson and other senior party figures are presenting figures from the Institute for Fiscal Studies, suggesting £18bn of spending cuts and tax rises would be in the pipeline in the event of the UK leaving the EU.
The UK votes in a referendum on 23 June on whether or not to remain in the EU. The figure - dismissed as "fanciful" by Vote Leave - is based on Labour's claim that a post-Brexit Conservative government would "look to announce further austerity if they are to balance the books by the end of the Parliament" - due to their predicted "hit to the UK economy" of a Leave vote.
Mr Burnham said leaving could lead to social "fragmentation" and the break-up of the UK. In further efforts to win over Labour voters to the Remain cause, Yvette Cooper will claim Labour's heartlands would be damaged if the "far right of the Conservative Party" while former leader former leader Ed Miliband will claim that senior Leave campaigners want to abolish measures protecting workers' rights.
He said the party had failed to reach out to traditional Labour voters. Speaking to BBC Radio 4's Today programme ahead of his speech, Mr Miliband said "not enough of our voters have heard we are for 'in' - amid a focus on "blue-on-blue" Conservative in-fighting.
He added: "We haven't done enough yet, we've got to do more. But people know where Labour stands. And I know Jeremy [Corbyn] believes that, everybody in our Party believes that. And this is a fundamental question for out country."
It follows comments by shadow home secretary Mr Burnham, who told BBC Two's Newsnight the party had failed to reach out to traditional Labour voters.
"We have definitely been far too much Hampstead and not enough Hull in recent times and we need to change that. Here we are two weeks away from the very real prospect that Britain will vote for isolation," he told BBC Two's Newsnight."We have definitely been far too much Hampstead and not enough Hull in recent times and we need to change that. Here we are two weeks away from the very real prospect that Britain will vote for isolation," he told BBC Two's Newsnight.
"I think it would have a profound effect on our national life - the fragmentation that will come, the fear and the division.
"Those are all the things that the terrorists couldn't create with their bombs and yet we will have a situation where society becomes more divided."
Later he tweeted that his comments were not intended as a criticism of the referendum campaign - but as a comment on Labour over the last two decades.Later he tweeted that his comments were not intended as a criticism of the referendum campaign - but as a comment on Labour over the last two decades.
Former leader Ed Miliband will separately warn that the Conservatives would move to the right in the event of a Brexit, and reduce workers' rights. But Mr Mann, MP for Bassetlaw, in Nottinghamshire, told the BBC on Friday: "It's not that Labour's not getting its message across, it's that Labour voters are fundamentally disagreeing."
In a speech in London, Mr Miliband will say: "Let's be clear what the Leave agenda would mean for working people. And Mr Skinner, MP for the neighbouring seat of Bolsover in Derbyshire, told the Morning Star that "fighting capitalism state-by-state" was "even harder when you're fighting it on the basis of eight states, 10 states and now 28".
"They want out of Europe so we can be out of the social chapter, as Boris Johnson said... in 2012. Their competitiveness strategy for Britain is deregulation and the erosion of rights of working people." On the claims that £18bn of cuts would follow a "Brexit" vote, a Vote Leave spokesman said: "As support drains away from the Remain campaign, they are getting ever more desperate and hysterical with their fanciful Leave predictions."
A Vote Leave spokesman said: "As support drains away from the Remain campaign, they are getting ever more desperate and hysterical with their fanciful Leave predictions."
BBC political correspondent Iain Watson says senior Labour figures are very worried because by talking with election agents around the country, they have been discovering that far more of their supporters are backing Brexit than they had anticipated.
Mr Mann, MP for Bassetlaw in Nottinghamshire, told the Sun many Labour councillors would "shock" Westminster with their referendum vote.
"And it shouldn't come as a shock how many Labour voters will vote," he said. "Because a people's revolution is under way. This is about returning power to the people."
Mr Skinner, MP for Bolsover in Derbyshire, told the Morning Star that "fighting capitalism state-by-state" was "even harder when you're fighting it on the basis of eight states, 10 states and now 28".