Professor Nicholas Bloom said that living standards in Britain would be hit post-Brexit

Leaving the European Union is likely to reduce productivity in Britain as it will strengthen weaker companies while hurting the strongest, an economist has warned.

Nicholas Bloom, a professor at Stanford University in California, added that company bosses had spent 2 per cent of their working time preparing for Brexit, which had cost the economy in wasted opportunities.

He said that living standards would be damaged post-Brexit as companies that were the most optimistic were also the least productive.

Productivity is vital for living standards, as wages can rise faster than inflation only if workers produce more for the same effort. Poor management has been identified as one reason for Britain’s woeful productivity record since the financial crisis.

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