The UK could face an extra two years of austerity measures if it votes to leave the EU, the Institute for Fiscal Studies has said.
The consensus of economists was that the UK economy would shrink after an EU exit, the think-tank said.
It warned ministers could react to a post-Brexit GDP fall with either deeper cuts, or by extending them.
Vote Leave's John Redwood said the IFS was in the "cosy establishment" and that the UK was better off out the EU.
Speaking on BBC Radio 4's Today programme, he disputed the forecasts used in the report, and said savings made from quitting the EU would mean austerity would not be needed.
The Institute for Fiscal Studies (IFS) assessment comes as a dozen former senior military officers have warned that the EU's policies are undermining the UK's combat effectiveness.
Speaking out in favour of Britain leaving the EU, they said Nato, and not the EU, should remain the cornerstone of Europe's defence.
Ex-military officers fight for EU exit
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