Gerry Grimstone, chairman of Edinburgh-based investment, pensions and insurance giant Standard Life, said on Friday it would be “potentially damaging to the UK economy and therefore to companies such as Standard Life” if the UK were to leave EU single market.

“The debate on whether or not the United Kingdom should stay part of the European Union (EU) is reaching its climax and coming closer to the time when the UK public will have their say,” said Grimstone in a statement contained in Standard Life’s annual results.

“We are conducting a thorough study of the impact of this on our business.

“We stay clear of the politics but, as you would expect, we are closely following developments and assessing the implications for our businesses as they emerge.

“As we have stated before, we believe that access to the EU Single Market is in the best interests of our customers and clients.

“The principle behind the Single Market – to encourage the free movement of goods and services – has created an environment that gives individuals and businesses the confidence to invest for the long term and it would be potentially damaging to the UK economy and therefore to companies such as Standard Life if the UK were to leave it.”