LABOUR MP Kate Hoey accused David Cameron yesterday of launching a campaign of “fear” to keep Britain in the EU.

Ms Hoey, the co-chair of the Labour Leave group, spoke out after the Prime Minister used an international summit to attack Eurosceptic campaigns at home.

The PM has insisted “no options were off the table” if Britain could not negotiate a better deal from EU membership. But speaking in Iceland yesterday, he claimed that Britain would be politically cut off by an EU exit.

Breaking links with Brussels would see Britain have as much influence as Norway, Iceland, Lichtenstein or Switzerland, Mr Cameron claimed.

Former Lib Dem leader Nick Clegg also reared his head yesterday to warn Britain would “become more isolated” outside of the EU.

Ms Hoey blasted the pair for “trying to talk down our country.” The Vauxhall MP told the BBC that Britain was “big enough and strong enough to negotiate” independent trade deals without the EU.

And she told the BBC: “I think Nick Clegg and indeed the Prime Minister seem to be trying to introduce an element of fear into this whole debate.

“It’s really sad in a way that our leaders in this country are not prepared to be standing up for our country internationally.”

Meanwhile, the Campaign Against Euro Federalism has joined the Leave.EU campaign, founded by Ukip donor Arron Banks.

Spokesman Brian Denny insisted the group — whose “ambassadors” include wealthy businessmen — represented people from all walks of life and defends national democracy which is clearly under threat from a corporate-dominated EU.”