EUROPEAN Commission President Jose Manuel Barroso was accused of “bully boy tactics” yesterday after claiming that Britain would pay a heavy price for an EU exit. 

The Portuguese social democrat said that manufacturing companies were ready to abandon Britain if a majority voted to leave the EU in a referendum.

“They have told me — some of the most important global companies — that they will move out of Britain from the City to Frankfurt or to Paris if Britain leaves the European Union,” he said. 

Mr Barroso issued the warning during a visit to London days after MPs gave initial backing on Friday for Britain’s first EU poll since 1975. 

Kate Hoey was one of three Labour MPs who rebelled against party whips to vote for the in-out referendum in 2017. 

And she hit back at Mr Barroso’s threats yesterday, making clear that his “attempt to bully the British people will not work.”

She told the Star: “Barroso is typical of the people running the EU — they think they are the only people who understand economics. 

“The UK could manage very well outside the EU. We are being held back by the EU's obsession with keeping the artificial eurozone in place.”

Mr Barroso also shot down PM David Cameron’s plans to limit the number of EU workers in Britain. 

He admitted that other leaders also had concerns about the “abuse of free movement” but said the Tory’s plan for an “arbitrary cap” breached the EU’s “fundamental principle” of free movement.