Leading fund manager Neil Woodford says Britain’s long-term economic future will be “largely unaffected” by leaving the European Union.

As shockwaves continue to reverberate around the UK and Europe, following the unexpected victory of the leave side, focus turns on the impact it will have on the economy.

There were predictions of severe adverse economic ramifications from a Brexit during the campaign.

The markets in the immediate aftermath in the early hours today appeared to have backed up that prediction but Mr Woodford said: “Markets are clearly shocked by the decision but, in our view, it is not as negative a development as the market’s initial reaction appears to imply.”

The head of investment at Woodford Investment Management said: ““We have been clear in our thinking on the economic implications of Brexit for some time. The independent report that we commissioned on the subject concluded that Britain’s long-term economic future would be largely unaffected by a decision to leave the European Union. We stand by these conclusions.

“That is not to say there won’t be challenges in the near-term. There will. We now face a period of uncertainty as the exact terms of Britain’s exit from Europe are negotiated. Financial markets loathe uncertainty as amply demonstrated by this morning’s reaction across all asset classes.

“In the longer term, it is my view that the trajectory of the UK economy, and more importantly the world economy, will not be influenced significantly by today’s outcome.

“Although market conditions such as these can be unsettling, we would strongly urge investors to look through this period of uncertainty and focus on the long-term opportunity which, in our view, continues to remain attractive.”

He stressed that other global factors were always going to be challenging regardless of the outcome of the referendum.

He said: “Many of the greatest economic challenges that we face now and in the future, in my view, dwarf the economic issues associated with today’s outcome.”

Nick Mustoe, Invesco Perpetual’s chief investment officer, supported Mr Woodford’s long term outlook.

He said: “Longer term, we believe the UK economy will not only be able to handle the decision to leave the EU, but continue to thrive as we remain optimistic about the UK’s growth outlook. Having experienced some of the strongest growth among the G7 nations over the past four years, we believe the economy is well positioned to handle what lies ahead.”