The chief economist at Toscafund, a $4bn London-based investment firm, has said attempts to forestall the UK’s departure from the European Union will not spark a recovery in sterling, which remains under pressure from the likelihood of a disorderly Brexit.

In a January note, “The truth about potential party proliferation and the pound”, Savvas Savouri said that abandoning Brexit would not return the currency’s value to “what existed before the war” but rather leave it vulnerable to schisms in the UK’s main political parties.