SUMMARY: Brexit will lead to 8p income tax hike, warns Tresaury

British voters will be forced to pay 8p more in income tax on every pound earned if the country leaves the European Union, the Treasury has warned.

The county would be left with a £36 billion financial black hole by 2030 because of the economic hit from pulling out of the EU, a new analysis has claimed.

George Osborne heralded the analysis as a welcome dose of “facts” in the debate and demanded “economically illiterate” supporters of an Out vote produce their own detailed account of a Brexit.

However eurosceptic ministers attacked the Chancellor for “talking the country down” and being “unpatriotic” while one Tory MP said Mr Osborne should be “ashamed of himself”.

Campaigners for an exit claimed the analysis showed that Britain had lost control of its borders as it emerged the forecasts were based on three million more EU migrants moving here than Britons going abroad.

They attacked the analysis for detailing the losses from new tariffs on EU trade after Brexit but failing to include possible new revenue from deals with non-EU countries.

The Treasury's 200-page report modeled three possible scenarios after an Out vote: a Canada-style free trade deal, remaining in the European Economic Area like Norway or adopting World Trade Organisation rules.

At worst every British household will be up to £6,600 poorer by 2030 if there is a vote to leave the European Union, the analysis found. Even the Canada-style deal provisionally backed by Boris Johnson would set back each family by £4,300, it warned.