Prime Minister David Cameron was yesterday accused of scaremongering over immigrants from Bulgaria and Romania by think tank Institute for Public Policy Research (IPPR).

The Tory Party has whipped up concern over the prospect of a mass influx from the countries when EU travel restrictions are lifted on January 1.

The pandering PM has pledged to stop them claiming benefits for three months, while boosting border patrols.

But the think tank labelled Mr Cameron's plans "last-minute symbolic gestures" which would have little effect.

It also blasted the Tories for scrapping the migration impacts fund.

The fund helped councils deal with extra demand on schools, housing and hospitals that followed immigration.

It was paid for by a £50 levy on all visas and cost the taxpayer nothing but was scrapped when the Con-Dem coalition took power in 2010.

The IPPR said the plans revealed the government had not learned the lessons of 2004 when citizens from eight EU countries gained unrestricted movement rights.

Senior researcher Alex Glennie said: "The UK's economy and society are flexible enough to adapt to and benefit from European migration flows, as long as the pressure points they create are quickly identified and addressed.

"There is little to suggest that these lessons have been learned and applied in the run-up to January 1."

The group's report added that Britain will not be the first-choice destination for
thousands of people, who will choose to go to Germany, France or any other EU
member state.

But Mr Glennie told the Tory PM that "even now it is not too late to take some practical steps to alleviate any issues that might arise."

The think tank's call came after Mr Cameron was compared with infamous racist Tory MP Enoch Powell by Con-Dem colleague Vince Cable.

Mr Cable said: "I remember going back to Enoch Powell and 'rivers of blood' and all that. If you go back a century, it was panics over Jewish immigrants coming from
eastern Europe."