David Cameron has flatly dismissed Eurosceptic fury over his decision to spend nearly £10 million on a pro-EU 'propaganda' mailshot to every household in the country.

The Prime Minister said he 'made no apology' for using taxpayer funds to send out the leaflets, which have been condemned as 'biased and hysterical'.

The glossy pamphlets, claiming that EU membership brings 'economic security, peace and stability', are due to begin landing on doorsteps by next week.

In a defiant speech at Exeter University, Mr Cameron insisted it was 'money well spent' and the government was 'not neutral' in the referendum battle.

'I make no apology for the fact that we are sending out this leaflet to all households,' he said.

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David Cameron brandishes the taxpayer-funded leaflet setting out the Government's pro-EU message, which will be sent to every household from next week

The Prime Minister's speaking notes were left in full view during his Exeter University appearance today

'We are not neutral in this. We think it would be a bad decision to leave.'

Challenged by a member of the audience to explain his 'undemocratic' action, the premier said: 'I absolutely don't think it is.

'There is nothing to stop the government from setting out its view in advance of the campaign.'

Mr Cameron argued that the same thing had happened ahead of the previous European referendum in 1975, and before the Scottish independence poll in 2014.

'I think out there a lot of people want to know what are the facts, what are the arguments,' he said. 'A lot of people want to know what the government thinks.'

PROTEST TO ELECTION WATCHDOG Angry Brexit supporters have called on the elections watchdog to take action over the government's 'propaganda' mailshot. In a letter to the Electoral Commission, Grassroots Out chairman Richard Tice said the cost of the leaflets effectively doubled the Remain camp's spending ability. He questioned whether the pamphlets broke the EU Referendum Act rules, and suggested that most would be delivered after April 15 - when formal spending limits take effect. However, the Commission has defended the government's right to send out its pro-EU leaflet. A spokeswoman said: 'After the referendum on Scottish independence, the Electoral Commission recommended that governments should conduct no taxpayer-funded advertising activity during the regulated period. 'However, parliament decided not to put any legal restrictions on government activity until 28 days before the poll, the 27th of May. These are the same rules that were in place for other recent referendums. 'The Electoral Commission is responsible for regulating the rules on spending in the run-up to the EU referendum. The rules on spending apply during the regulated period which starts on 15 April and ends on polling day, 23 June. 'The rules exclude spending that is met out of public funds, which includes spending by the government on the government information booklet.' Advertisement

of the Cabinet ministers campaigning for Brexit - branded the leaflets 'wrong'.

'I want a fair campaign, I want to hear from both sides,' he told the BBC.

'I just think it is wrong that at a time of austerity, £9 million of taxpayers' money is being spent on a one-sided piece of propaganda.

'That money should be being spent on the NHS and the people's priorities, not on propaganda.'

Conservative Mayor of London Boris Johnson has branded the mailshot 'biased and hysterical' and a 'complete waste of money'.

'If you are going to use taxpayers' money you should allow people to put the other side of the case as well,' he said.

Eurosceptics are considering whether there are any mechanisms they can use to prevent the leaflets going out, and could protest by refusing to support the government on other measures when parliament returns from its Easter break next week.

Labour MP Graham Stringer suggested the leaflet was being issued now to distract attention from speculation over Mr Cameron's financial affairs after revelations about offshore funds linked to his late father Ian.

'It is an outrageous use of taxpayers' money,' he told BBC Radio 4's Today programme. 'This is a very biased document indeed.'

A petition on the parliament website criticising the spending has already attracted more than 67,000 signatures today.

It states: 'Prime Minister David Cameron plans to spend British taxpayers' money on a pro-EU document to be sent to every household in the United Kingdom in the run up to the EU referendum. We believe voters deserve a fair referendum - without taxpayer-funded biased interceptions by the Government.'

Eurosceptic ministers including Chris Grayling and Priti Patel were apparently kept completely in the dark about the leaflet. Nearly £10million is being spent producing, printing, delivering and promoting the document.

The government has pointed to independent polling indicating 85 per cent of voters want more information to help them make a decision before the crucial ballot on June 23.

Environment Secretary Liz Truss said: 'This referendum will be a huge decision for our country, perhaps the biggest we will make in our lifetimes and it is crucial that the public have clear and accessible information.

'Independent polling carried out on behalf of the Government made clear that 85% of people want more information from the Government to help make an informed decision.

'The document makes clear why EU membership brings economic security, peace and stability.

'It also sets out that if the UK voted to leave, the resulting economic shock would put pressure on the value of the pound, which would risk higher prices of some household goods.'

Andrew Rosindell, another Tory Eurosceptic, dubbed the leaflet 'propaganda'.

David Cameron addresses students at Exeter University. He told them he 'made no apology' for spending millions of pounds of public money on leaflets backing EU membership

The Prime Minister unveils the Remain campaign's battle bus after his question and answer session

The Government said similar leaflets had been published ahead of the EU referendum in 1975, the referendums on the creation of the Scottish Parliament and Welsh Assembly in 1997, the creation of the Mayoral system in London in 1998 and two UK Government leaflets during the Scottish referendum in 2014

Peter Bone, a co-founder of the Grassroots Out campaign, said: 'This is an outrageous way to spend hard-working taxpayers money.

'Many recent polls have shown that the majority of the UK public are actually in favour of leaving the EU so to spend their money on a pro-EU propaganda exercise is an inexcusable waste.

'This is a major error of judgement given the lack of funding for vital public services.'

London Mayor Boris Johnson branded the leaflet 'biased and hysterical' and a 'complete waste of money'

Both official campaigns will get to send their own taxpayer-funded leaflet to every household ahead of the poll.

The Electoral Commission will also send a leaflet featuring one page each from both official campaigns.

The 16-page leaflet - half of which is covered in pictures - leaves no room for doubt about the Government's view that EU membership is good for Britain.

Its front cover reads 'Why the Government believes that voting to remain in the European Union is the best decision for the UK'.

The back cover repeats an identical message but adds tick boxes suggesting the EU protects jobs, provides a stronger economy and provides security.

Inside are sections about why the referendum is an 'important decision for the UK', claims the EU offers a 'stronger economy' and why the Government said membership ensured ministers were 'controlling immigration and securing our borders.'

Ukip leader Nigel Farage was quick to protest claims in the document, insisting it was 'full of lies' and was 'outrageous'

Tory MP Andrew Rosindell also claimed the leaflet was 'propaganda' in favour of the EU from the Government

It makes claims such as 'a vote to leave could mean a decade or more of uncertainty' which will be hotly contested by the Brexit campaign.

Ukip leader Nigel Farage hit out at the claim.

He said: 'Government's pro-EU document full of lies including claim that we currently control our borders. We don't. Outrageous to suggest otherwise.'

He continued: 'This government scam confirms my view that this referendum is defined by the battle of the people vs. the politicians.

'Why is the government spending £10million of our money telling us what to think?'

The leaflet is costing £458,500 to produce. Printing and delivering it to 27 million homes - in two waves - is costing £5.9million.

Another £2.8million is being spent on promoting the leaflet and a companion website.

Households in England will receive the leaflet between April 11 and 13 next week.

The document will be sent to Scottish, Welsh and Northern Irish homes from May 9 to ensure it arrives after the devolved assembly elections.

DUTCH VOTE 'NO' IN REFERENDUM ON EU TRADE DEAL Brexit supporters have been given a boost after the Dutch rejected an European Union trade deal in a referendum. Voters opposed the move to drop barriers with Ukraine by a margin of 61 per cent to 38 per cent in the poll, which was seen as a test of attitudes towards the EU. Turnout was low at 32.2 per cent, but above the 30 per cent threshold for the outcome to be valid. Although the result is not binding, Prime Minister Mark Rutte said the government would look again at the deal. However, the Dutch parliament and all other 27 EU states have already ratified the agreement. Ukrainian President Petro Poroshenko said his country would 'continue our movement towards the EU'. The referendum was triggered after Eurosceptics launched an online petition that attracted more than 400,000 signatures. Advertisement

Big Claims... But do they really stand up to scrutiny?

Within days, a 16-page taxpayer-funded leaflet on why Britain should remain in the EU will begin dropping on doormats across England. Here, Political Editor JAMES SLACK examines the Government's claims and the response of the Out campaign.

CLAIM: More than three million jobs in Britain are linked to exports to the European Union.

RESPONSE: The claim is more than 15 years old – having begun life in a South Bank University paper in 2000. In any event, there are five million jobs in other EU countries which are dependent on trade with the UK, such as the sale of wine, clothes and cheese. This means other member states would have far more to lose by not agreeing a trade deal with a post-Brexit UK.

CLAIM: The EU is by far the UK's biggest trading partner. EU countries buy 44 per cent of everything we sell abroad, from cars to insurance.

RESPONSE: The EU's importance to the UK economy is declining sharply – in 2006 the EU accounted for 62 per cent of British exports. Last year, Britain bought far more goods from EU countries than they bought from us – with the gap at an all-time high of £89billion. Again, it is the other EU countries with most to lose.

Pro Europeans claim Brexit would lead to an economic shock which could hit the value of sterling

CLAIM: If the UK voted to leave the EU, the resulting economic shock would put pressure on the value of the pound – which would risk higher prices of some household goods and damage living standards.

RESPONSE: There is no agreement among economists, businessmen or politicians on the impact of Brexit. For instance, a study published by the Institute of Economic Affairs – and cited by the Office for Budget Responsibility – argues that leaving the EU could actually increase UK GDP by 13 per cent.

CLAIM: EU membership gives UK citizens travelling in other European countries the right to access free or cheaper public healthcare. There are no guarantees we would keep these benefits if we left.

RESPONSE: Both Switzerland and Norway use the EHIC insurance scheme – which currently provides healthcare to Britons abroad – and they are not members of the EU. In any event, Britain pays the bill and could continue to do so. Since 2007, the UK has paid out £5.8billion more to other member states for the treatment of British citizens abroad than has been recouped for the cost of treating their citizens here.

CLAIM: Cooperation with the European Union makes it easier to keep criminals and terrorists out of the UK.

RESPONSE: Frontex, the EU's own border agency, has admitted that mass immigration is allowing terrorists to slip into the EU – including two of those behind the devastating attacks in Paris. Meanwhile Sir Richard Dearlove, who is the former head of MI6, has said Britain could be safer outside the EU as it would make it easier to deport fanatics.

Frontex has admitted that mass immigration is allowing terrorists to sneak into the EU along with refugees

CLAIM: Some argue that leaving the EU would give us more freedom to limit immigration. But in return for the economic benefits that come with access to the EU's single market, countries not in the union – such as Norway – have had to accept the right of all EU citizens to live and work in their country.

RESPONSE: EU immigration is increasing the UK's population by 180,000 every year. Vote Leave point out that the EU has free trade deals in force (which do not entail membership of a customs union or limitless immigration) with at least 17 countries. These include: Colombia, Peru, Mexico, South Africa, Chile, Montenegro, Bosnia and Herzegovina, and Serbia.

CLAIM: The Government has negotiated a deal that will make our benefits system less of a draw for EU citizens.

RESPONSE: David Cameron got a far weaker deal than he originally wanted or his manifesto promised. His changes to benefit rules will come into force in 2017 at the earliest and will be almost entirely counteracted by the new Living Wage. Weekly take-home pay would continue to be 156 per cent higher than in Poland and 353 per cent higher than in Bulgaria, according to research by Vote Leave.

CLAIM: Voting to leave the EU would create years of uncertainty and potential economic disruption. This would reduce investment and cost jobs.

RESPONSE: The head of the Remain campaign, Lord Rose of Monewden, has himself said: 'Nothing is going to happen if we come out of Europe in the first five years. There will be absolutely no change … It's not going to be a step change or somebody's going to turn the lights out and we're all suddenly going to find that we can't go to France, it's going to be a gentle process'.

French president Francois Hollande has dismissed claims that the UK's status within the EU is 'special'

CLAIM: The UK has secured a special status in the EU. The UK has kept the pound, will not join the euro and has kept control of its borders.

RESPONSE: French president Francois Hollande has dismissed the idea the UK's status is special. Cabinet minister Chris Grayling has warned that, as the rest of the EU moves towards full political union, Britain will be left voiceless, isolated and subject to ever more harmful meddling by a 'giant federation of eurozone' states.

CLAIM: For every £1 paid in tax, a little over 1p goes to the EU. The Government judges that what the UK gets back in terms of opportunities, job creation and economic security from EU membership far outweighs the cost.

RESPONSE: HMRC collected £515billion in taxes in 2014-15. According to Full Fact, in 2015 the UK government paid £13billion to the EU budget, and EU spending on the UK was £4.5billion. So the UK's 'net contribution' was estimated at about £8.5billion. This is money which could be better spent at home on the NHS and other public services.

CLAIM: Being inside the EU also makes it more attractive for companies to invest in the UK, meaning more jobs. Over the last decade, foreign companies have invested £540billion in the UK, equivalent to £148million every day.