Speaking at a debate on the EU Referendum and its impact on personal finance, Kelvin Hopkins MP for Luton North, and a supporter of the ‘leave’ campaign, said interest rates would only begin to rise when the economy had started to recover, and not because of a Brexit.

“We have a deflationary problem across the world at the moment. China is in trouble, Japan is in serious trouble, the EU is in trouble and so is America. There is a possibility of another crisis,” said Hopkins.

Osborne made the claims after fresh analysis of Treasury figures by Britain Stronger in Europe suggested that a vote to leave the EU would add between £920 and £1,470 to the costs of a mortgage on an average home priced at £292,000.

Hopkins said the remain party’s doom-mongering about the disasters facing the country, should it vote to leave the EU, followed the same pattern as other predicted catastrophes which failed to materialise.

“We were going to face crisis if we didn’t subscribe to the euro but it’s actually worked to our advantage being outside the euro,” said Hopkins. “The millennium bug was a predicted crisis and nothing happened. All these forecasts of doom, I just don’t believe. I think the economy will fare better outside the EU.”

Gareth Thomas, MP for West Harrow and chair of the Co-op party, speaking for the ‘remain’ argument, said there were always costs related to uncertainty, but added that as he had not seen the Chancellor’s analysis, he not could comment in more depth.