PROJECT Fear was resurrected yesterday when London’s Labour mayor used a taxpayer-funded report written by a Corbyn ally to claim Brexit could cost 500,000 jobs.

Sadiq Khan said ‘independent analysis’ showed Britain ‘could be heading for a lost decade of lower growth and lower employment’. But he faced accusations of scaremongering as critics questioned the objectivity of the firm commissioned to produce the report.

The non-executive directors of economic analysts Cambridge Econometrics include Richard Murphy, who is credited with creating the basis for the Labour leader’s economic policies. Gareth Bacon, leader of the Tory group in the London Assembly, said: ‘The fact is, the economic collapse that Remainers like Sadiq Khanpredicted would happen immediately after the referendum, has not occurred.’

Professor Patrick Minford, chairman of the Brexit-supporting Economists for Free Trade, said: ‘These ridiculously pessimistic studies are the latest attempts to use taxpayers’ money to pump life into Project Fear.’

According to the study, if Britain leaves the EU without a trade deal the country faces nearly £50billion less investment by 2030. Mr Khan said Britons ‘have a right to know the likely impact of the various options the Government are considering on their lives and personal finances’.

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