Davis says that the pound fell after a no-deal Brexit, "not bad" – and insists that "fear" will force the EU to make further compromises.

The archbishop also described Theresa May's deal as worse than staying in the EU when he urged MEPs to do a "stake through his heart" at the seminal poll next week.

He claimed that foreign investment has "risen" since the referendum, even though the government's own figures have fallen sharply.

The British pound fell sharply after the referendum in 2016, making the population poorer by increasing the cost of importing food and fuel into the UK.

In the House interview, Mr Davis – who resigned from Brexit's secretary in protest of the Checkers plan – said that the United Kingdom had no reason to fear a similar outcome if the UK had fallen without EU agreement ,

If he refused the pound, it would "go into free fall," Mr. Davis said, "The first thing that's going to happen is that it's about five, ten points farther than the 15 it already is.

"So we will finish 20 or 25 below the level before the referendum. That's not a bad thing. The pound was always too high from the industry's perspective because of the city's impact. "

Mr Davis argued that the overthrow would more than offset all new EU tariffs and said, "Our competitive position vis-à-vis Europe would be dramatically better, even with tariffs."

He also claimed, "There were a lot of horror stories about moving factories and banks that were moving and so on. Most of it has not manifested.

"In some cases it is less than a few thousand people. I always expected that. "

And he added: "Foreign direct investment is increasing, not less. We can do things when we are not inside the Union and the WTO [World Trade Organisation] Rules to help some parts of our industry. "

When asked next week's poll, Davis said the Prime Minister's reaction to the expected defeat depended on "the size of the rebellion."

Ms. May would argue she would try to optimize her deal if the defeat was small. He said, "First, we have to prevent that.

"We have to make sure that this does not come back. We need to make sure that the stake goes through his heart and is buried at the intersection. "

The former Brexit secretary also rejected growing pressure, including some conservatives, for a Final Say referendum on the Brexit outcome.

"There will be a parliamentary guerrilla war against it. So it will not happen. It will take a year – will we suspend all this for another year? ", Asked he.

He insisted that the United Kingdom still had the power to force the EU into a Canadian-style free trade agreement, replacing the current offer.

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"Fear will still drive her to re-engage in the negotiations," Davies claimed.

"That's what I expect. To do that, of course, Parliament must keep its nerves. And I think it will. "

The Independent has launched its # FinalSay campaign to demand that voters vote in the final Brexit deal.

Sign our petition here