Labour said the warning underlines the need for a ‘more productive’ relationship with Brussels following Britain’s withdrawal from the EU.

The economic damage done by Brexit is happening sooner than feared, the Bank of England warned. / The central bank said the UK economy is being hindered by a sharper slump in trade with the European Union than implied by official statistics and “very subdued” business investment.

The hits to Britain's economy from Brexit are probably appearing faster than expected, Bank of England Deputy Governor Ben Broadbent said on Thursday.

Ben Broadbent says projects postponed amid political uncertainty will be cancelled.