A leading economic forecaster has predicted the UK economy is heading for its worst year in almost a decade amid the growing risks from no-deal Brexit.

The EY Item Club said the economy would struggle to recover in the final months of the year owing to the increasing likelihood of Britain crashing out of the EU in less than six months’ time.

***

The board of cake shop chain Patisserie Valerie discovered the existence of two “secret” company bank overdrafts this week, according to 37% owner Luke Johnson.

The entrepreneur told the Sunday Times newspaper that £9.7m had been spent in two overdrafts set up with HSBC and Barclays.

Johnson said neither he, the board, nor the auditors had known that the firm had bank overdraft facilities.