David Cameron was caught yesterday finally admitting that his doom-laden predictions about the impact of Brexit had been proved wrong.

The former prime minister appeared to disown Project Fear, saying that leaving the EU had not proved ‘a disaster’ and had ‘turned out less badly than we first thought’.

His comments came at the World Economic Forum in the Swiss ski resort of Davos, where his conversation with the billionaire steel tycoon Lakshmi Mittal was caught on camera.

Last night pro-Brexit MPs lined up to welcome Mr Cameron’s change of heart.

During the referendum campaign in 2016 Mr Cameron and his Chancellor, George Osborne, issued a string of blood-curdling warnings about the consequences of a Leave vote.

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Mr Cameron was chatting to steel tycoon Lakshmi Mittal in a corridor at the World Economic Forum when he made the comment

Commenting on the unguarded comment, Nigel Farage said Mr Cameron was 'busted'

Following his attempted renegotiation of Britain’s membership deal, the then Prime Minister turned to trying to scare the public about the consequences of a Leave vote in what became known as ‘Project Fear’.

Over a few months, Mr Cameron claimed Brexit could lead to war and genocide in Europe, ‘put a bomb under the economy’, destroy funding for public services and lead to cuts in pensions.

He also said it would be a boost to Russian president Vladimir Putin and Islamic State leader Abu Bakr al-Baghdadi.

Yesterday his change of heart was clear in comments broadcast by Channel 5 News from a conversation between Mr Cameron and Mr Mittal. The exchange began with the steel tycoon saying to the former prime minister: ‘Everyone is talking about Brexit.’

Mr Cameron, who quit Number Ten the day after the Leave vote, replied: ‘Yes, well I know. It’s frustrating. As I keep saying it’s a mistake not a disaster. It’s turned out less badly than we had thought but it’s still going to be difficult.’

Meanwhile, Tony Blair continued to warn about the feared consequences of leaving the EU. Speaking in Davos, the ex-prime minister said Brexit would ‘diminish Britain’s position on the world stage’.

Last night former Northern Ireland secretary Theresa Villiers said: ‘It is good to hear that David Cameron accepts that the predictions of disaster made by Project Fear are not happening.

‘Unemployment is at a 40-year low, manufacturing is booming, and foreign direct investment is at a record high. Not bad, considering that by now we were supposed to be crawling around in the scorched-earth remains of the Brexit apocalypse!’

It is the third notable occasion on which Mr Cameron has been caught on camera making unguarded comments.

In September 2014, he was filmed telling businessman Michael Bloomberg that the Queen had ‘purred down the line’ after he phoned her to say Scotland had voted no to independence.

George Osborne (right) is seen as the main architect of Project Fear alongside Mr Cameron. Former Treasury minister Lord O'Neill (left) admitted earlier this week that he had underestimated how robust the economy would be

And in May 2016 he was captured at a Buckingham Palace reception telling the Queen that leaders of some ‘fantastically corrupt’ countries, including Nigeria and Afghanistan, were expected to attend his anti-corruption summit.

÷Britain remains a top business destination following the Brexit vote, according to a poll of bosses from around the world.

A survey of 1,293 chief executives in 85 countries by professional services firm PricewaterhouseCoopers found the UK was the fourth most important nation in which to do business behind the US, China and Germany.

It follows a report by Forbes Magazine that crowned Britain the best country in the world in which to do business.