JOHN MCDONNELL said yesterday that Labour must rescue the EU referendum debate from the “project fear” tactics being peddled by David Cameron and Boris Johnson.

In a speech at the TUC, the shadow chancellor said the campaign so far has “brought out the worst in Westminster” because it’s been dominated by warring wings of the Tory Party.

He said: “In campaigning on this issue the first thing I hear on the doorstep when discussing the EU referendum is that the level of debate so far has been very negative on both sides and that what people want are the facts and real vision from their politicians. I think they are right.

“It’s time to turn this debate around, drive out the politics of despair and offer a vision for Britain and Europe, one where we protect workers’ rights, tackle tax avoidance, get to grips with climate change and protect our industries like steel.”

Mr McDonnell set out his support for the EU but mocked the Prime Minister’s attempts to scare people into staying with alarmist claims that Brexit could lead to World War III or see families broken up.

His speech came on the day that it was revealed Mr Cameron had colluded with big business over scare stories about the risks of leaving the EU.

A leaked letter suggests the PM discussed “how to mobilise corporates” in favour of the Remain campaign with the head of security privateer Serco, Rupert Soames.

The meeting took place during Mr Cameron’s renegotiation of EU terms — despite claiming in public that he was willing to quit the EU if Britain didn’t get a better deal.

In a follow-up letter to the PM, Mr Soames wrote: “I am working with Peter Chadlington and Stuart Rose [head of Britain Stronger in Europe] with a view to contacting FTSE 500 companies who have annual reports due for publication before June and persuading them that they should include Brexit in the list of key risks.”

Tory ex-London mayor Boris Johnson said yesterday that the revelation showed the renegotiation was the “biggest stitch-up since the Bayeux Tapestry.”

And Alex Gordon, convener of the left Leave campaign Lexit, told the Star: “These revelations confirm that David Cameron has been in league with big business and the EU-IMF-Nato alliance from the outset.

“His negotiations were partly a move to protect the position of the City of London in the EU — and partly a sham to secure greater public acceptance of Britain’s membership of the EU.”

Mr McDonnell said some people may be surprised by his support for the EU but vowed to prove his commitment to the Remain cause by sharing a platform with arch-Blairite Peter Mandelson.

But he added: “I draw the line at sharing a platform with Tories on this issue. Let’s be clear: the Tories are the main enemy of working people in this country. Not the EU — the Tories.”