Britain crashing out of the EU without a deal would inflict significant economic pain across Europe, leaving the region without any winners, the International Monetary Fund (IMF) has warned,

As the new Brexit secretary, Dominic Raab warned Europe to prepare for a no-deal exit, the IMF said such an outcome would hurt the UK most but would also have damaging economic consequences for Ireland and other EU nations.

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The Bank of England (BoE)has probed the strength of KPMG’s business after a string of high-profile corporate scandals damaged the reputation of the “big four” accounting firm. The BoE’s Prudential Regulation Authority, which supervises the UK’s largest banks and insurers, has raised questions with financial institutions and other regulators to see whether there were risks to KPMG’s viability.

The PRA is thoight to hve sought assurance on whether KPMG’s existing clients were planning to cut ties with the firm or whether it was struggling to win new business following heavy criticism of its work in South Africa and for British outsourcer Carillion.