The Liberal Democrats have been accused of attempting to “scaremonger” voters over the impact of Brexit as they target Zac Goldsmith’s Euroscepticism to unseat him in a crucial by-election.

The party has issued tens of thousands of fake newspapers warning voters in Richmond Park that leaving the European Union will do “grievous damage” to the economy.

They also claim the country’s manufacturing and services sectors are heading for “disaster” under Theresa May’s plan for Brexit and say there could be tariffs of up to 20 per cent.

It comes as the Lib Dems attempt to turn the by-election into a “Brexit referendum” after Mr Goldsmith, the sitting Tory MP, resigned in protest at his party approving Heathrow’s third runway.