LEAVING the EU would be an act of “economic self-destruction” delivered by people “living in cloud cuckoo land”, it has been claimed.

Jayne-Anne Gadhia, chief executive at Newcastle-based bank Virgin Money, and Economic Secretary, Harriett Baldwin, have rebuked arguments for a Brexit in next month’s referendum.

Out campaigners, including Richmond Conservative MP, Rishi Sunak, say a departure would provide Britain with a platform to negotiate better trade links while sidestepping costly regulations.

However, Ms Gadhia, who oversees Virgin’s North-East workforce of more than 2,000 people, said such claims are fanciful.

Ms Baldwin, who visited Virgin Money today (Thursday, May 26) added any exit would hit the financial services sector and force companies to postpone expansion plans.

“We have been privileged as a nation to live in peaceful times, which has allowed us to grow”, Ms Gadhia told The Northern Echo.

“That has come from being part of the EU.

“I want our economy to continue to flourish and for Virgin to flourish in it.

“We have got trade agreements with 500 million people, however, if we came out of the EU these would have to be ripped up and renegotiated.

“If people think that is easy to do, they are living in cloud cuckoo land.”

Ms Baldwin said a Brexit would be rash.

She reiterated the warning over trade agreements and said economists’ findings prove the point.

She added: “When people are thinking about where to locate their European headquarters for financial services, half come to the UK.

“To leave would be economic self-destruction.

“It would cause uncertainty in businesses, which they hate, and put decisions on hold.”

However, Mr Sunak said Britain would be better off by leaving the EU.

He said: “There’s a huge opportunity for businesses, especially smaller businesses, outside the EU, away from its costly regulation and through better trade agreements with other fast-growing markets around the world.

“That is the great benefit of leaving.”