AS the pound plummets to its lowest point in 30 years in the wake of a Brexit victory, the country faces an uncertain future.

Despite a sudden dive on the London stock market as the referendum result was announced, Melvyn Coles, economics professor at the University of Essex, believes the British economy won’t collapse or crumble, but one Southend financial service worker thinks the outcome could prove extremely damaging.

Professor Coles said: “Because the pound has dropped, it means that imports will be more expensive. Chinese goods in the supermarkets will be five per cent more expensive.

“Going on holiday will be more expensive too. One pound now buys less Euros.

“Everything will just be that little bit more expensive.

“If wages then start to move to deal with that, that’s inflation, and the Bank of England will raise interest rates to choke it off.”

But Paul Collins, 56, of Green Lane, Eastwood, a financial service worker in London, is very concerned about the economic fallout.

He said: “People are worried about their jobs at the moment, I think in the banking industry particularly. We are concerned about contracts and business from Europe. I live in Southend and work in London and would have to say they are poles apart in their attitudes at the moment.

“It’s very negative and I’m very concerned about the outcome for the city of London and for its place in Europe and the world, it’s quite bleak. People have to realise how important the financial services industry is to the country and things like this can cause problems, any bad effect will filter down.

"There will be job losses in time and I think firms may look at their plans for the immediate future and put them on hold. Southend and Essex have to realise that London is a big provider and this will have an impact locally.”

Profesor Coles said the UK economy faces a period of uncertainty which needs to be resolved by agreeing a free trade relationship with the EU.

He said: “It’s clear that the economy really depends on having trading relationships with Europe. We are where we are and it’s something that we have to deal with.

“It’s not good, but it’s not a disaster.

“It’s a completely new situation - no country has ever done this before so we have no idea what will happen.”