IMF chief highlights recession risk of no-deal Brexit

Christine Lagarde warns of 'dire consequences' if UK has disorderly exit from EU

• May's 'Chequers or no deal' warning angers Tory right

The UK economy would rapidly start to contract in the event of a disruptive exit from the EU next spring, according to a stark International Monetary Fund report that highlights the recession risks of a no-deal Brexit.

Christine Lagarde, the IMF's managing director, added that there would be costs to the UK under any outcome that involves leaving the EU.