'Grafters' Back Brexit, Says Michael Gove

Most of the UK's "grafters" back quitting the EU, according to leading Leave supporter Michael Gove, as he pitched for the votes of working families.

The Justice Secretary told Sky News the UK could scrap VAT on energy bills if it left the 28-member bloc, saving households about £60 a year.

At the same time the Tory cabinet minister sought to portray those supporting sticking with Brussels as "people with first class travel and with gilt edged salaries".

He also sought to scotch speculation that the referendum was linked to the future leadership of the Tory Party.

Mr Gove insisted: "Whether we vote to leave the European union or we vote to remain, one thing is certain, David Cameron will stay as prime minister.

"It's not about who should be prime minister on 23 June."

However, the Brexit camp has been accused of "fantasy economics", with Remain supporters claiming it had made £111bn in spending commitments with the money that would be saved by quitting the EU.

Mr Gove said: "If we leave the EU and we can use the millions of pounds that we would save from being outside the EU to cut VAT on fuel and that would help the poorest families most of all."

He added: "There are some businesses, they tend to be multinationals who like the way the European Union works because it suits them, it suits the people with first class travel and with gilt edged salaries.

"But the overwhelming majority of grafters in this country and entrepreneurs think we would be better off out."

But this has been challenged by his cabinet colleague Chancellor George Osborne, who warned leaving the EU would see taxes rise, such as VAT.

"More fantasy economics from Vote Leave," he said.

Meanwhile, Business Secretary Sajid Javid has warned over the impact of Brexit on the 1.2 million small and medium-sized businesses, which either export to Europe or supply firms that do.

Describing small firms as the "backbone of our economy", he said: "When they succeed, we all succeed. But when they struggle, we all struggle.

"And make no mistake, if we vote to leave the EU, small businesses will be hit hard."

The Remain camp has been boosted by the backing of Apprentice boss Lord Sugar and seven past and present members of the Dragons' Den panel.

Lord Sugar warned Brexit would be a "massive mistake" and was a "daft idea".

But in a speech Leave campaigner and Leader of the House of Commons Chris Grayling argued the single currency had "created the economic equivalent of the San Andreas fault".

He added: "The countries of southern Europe ran up massive deficits, they led the life of Riley on the back of a strong currency whereas what would've happened in the past was the drachma and the lira would have fallen forcing those countries back to a degree of rectitude.

"At its simplest, the Greeks didn't pay their taxes, they retired at 55 and hope somebody else would pay the bill.

"And in the end somebody else did. But you can't go on like that."

:: EU In or Out: David Cameron Live, Sky News 8pm Thursday, Michael Gove Live 8pm Friday.