COMPANY bosses face paying a "very dear economic and financial price" if they continue to speak up for European Union membership.

Former Conservative Cabinet minister John Redwood has warned big businesses to keep out of the debate in the run-up to the EU referendum.

Speaking at a Conservative Party Conference fringe meeting, Mr Redwood demanded firms don't meddle in politics.

He said: "The only answer for all concerned is for big business to keep out and not express a corporate view.

"If they don't understand that now they will find those of us organising the 'get out' campaign will then make life difficult for them by making sure their customers, their employees and their shareholders who disagree with them will be expressing their views very forcefully and will be de-stabilising their corporate governance.

"This is absolutely crucial that these people get this.

"It will be deeply disruptive to their businesses if a chief executive with a handful of shares thinks he can put the voice of a multi-national corporation behind a highly intense political argument in one country in which they operate.

"It would be extremely foolish and we must make sure they have to pay a very dear economic and financial price were they to try that ill-judged thing."

However, his comments were criticised by Katja Hall, the Confederation of British Industry's deputy director general.

She responded: "I think that business not only has a right but a duty to speak about this."