David Cameron accuses Jacob Rees-Mogg of spreading 'scare story'

David Cameron risked fuelling a fresh wave of anger among his Eurosceptic backbenchers after accusing a prominent Tory of spreading a "scare story".

Jacob Rees-Mogg claimed the £9 million taxpayer-funded pro-EU leaflet that has begun landing on voters' doormats was a "propaganda sheet" that contained "untrue" information.

During Prime Minister's Questions, the Conservative backbencher said that despite significant levels of economic migration, the glossy pamphlet claimed that Britain has control of its borders.

"Have we withdrawn from the free movement of people or is that sheet simply untrue?" he asked.

But Mr Cameron hit back, insisting the comments underlined the need for the Government to spend public money on a leaflet so voters can "see the truth".

The PM said: "The truth is this, economic migrants that come to the European Union do not have the right to come to the UK. They are not European nationals."

He added: "Frankly, this is why it is important that we do send information to households so they can see the truth about what is being proposed. What (he) has just put forward is classic of the sort of scare story we get. Britain has borders, Britain will keep its borders, we have got the best of both worlds."

Furious Tory Eurosceptics have previously claimed the leaflet shows the Government is using the ''spiv'' tactics of Zimbabwe's Robert Mugabe.