Britain should seize the opportunity to leave the European Union and forge trade ties with other nations, according to the co-founder of Hargreaves Lansdown.

Peter Hargreaves, who set up the stockbroker with Stephen Lansdown in the 1980s, said fears that the City of London would be rocked by a Brexit were overblown.

He said the "unknown" would provide a catalyst for Britain to become more dynamic, as he likened a post-Brexit Britain to Singapore in the 1960s.

"I'm firmly convinced that day - hopefully - we decide to leave, that little bit of insecurity, that little bit of unknown will be an absolute fillip to everyone," Mr Hargreaves told the BBC.

"It will be a great incentive for us to go out and prove that it's right."

Speaking in a personal capacity, he added: "When Singapore became independent from Malaysia, that little insecurity that they were no longer part of Malaysia, it was an inspiration. I honestly think that would be good for us too."

However, a report published by the Centre for Economic Performance warned that British families would see a massive drop in living standards if Britain left the EU.

Households would see their incomes drop by an average of £850 even in the most optimistic scenario in which the UK adopted a Norway-style relationship with the bloc and remained in the single market