A SECRET Treasury report has made an even worse prediction about the impact of Brexit on Scotland than that forecast by the Scottish Government.

According to leaked estimates which emerged yesterday, the Scottish economy would grow 9 per cent slower with no deal than it would if it stayed in the EU.

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This is a half a percentage worse than the Scottish Government’s 8.5 per cent prediction - which was the equivalent of a £12.7 billion blow - the equivalent of £2,300 for every person north of the border.

The Treasury report was broadly similar to the findings of the Scottish Government one in terms of a soft Brexit and a comprehensive free trade deal.

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The former predicted the Scottish economy would be hit by a 6 per cent slow down under a free trade agreement between the UK and EU, while the Scots study suggested 6.1 per cent.

In terms of least worst scenario where Scotland remained in the single market, the Treasury study forecast a 2.5 per cent slow down and the Scottish Government one suggested a 2.7 per cent slow down - or a £4 billion reduction in growth.

Scottish Tories hit out at the First Minister’s report when it was published last month describing it as “scaremongering”.

After the publication of the Scotland in Europe analysis, Scottish Conservative constitution spokesman Adam Tomkins he continued to insist Brexit would bring economic opportunities.

“The SNP government has gone completely over-the-top in its scaremongering here,” he said.

“No-one’s doubting that Brexit will pose challenges, but it will bring opportunities too.”

The Treasury report also brought more grim forecasts for the wider economy.

According to the leaked estimates, the UK car industry’s GDP would shrink by 1 per cent if the UK remained in the EU single market but would lose 8 per cent if there was a free trade agreement and 8.5 per cent if the UK left without a deal and went to World Trade Organisation (WTO) rules.

MPs have also been allowed to see the impact assessments for their own regions. All regions will see their economies shrink, with the North East of England, the West Midlands, and Northern Ireland being the worst affected, according to the analysis.

The North-East would be hit hardest - with staying in the single market and customs union shaving 3 per cent off GDP, an 11 per cent reduction under a free trade deal and 16 per cent under a no-deal WTO scenario, London would fare the best, with reductions of 1 per cent, 2 per cent and 3.5 per cent in each of the three scenarios. Wales would see reductions of 1.5 per cent, 5.5 per cent or 9.5 per cent.

Brexit-backing Conservative MP Jacob-Rees Mogg has accused Treasury officials of “fiddling the figures and the UK Government said its preferred option - a bespoke deal covering trade and financial services - was not among those analysed in the paper.

The Prime Minister was yesterday holding a Brexit ‘war cabinet’ meeting to thrash out what direction the UK should take in terms of a trade deal with the EU.

Amid concerns by the First Minister over Scotland not being involved in the process, a UK Government spokesperson said: “The UK Government is seeking the right deal for Scotland and whole of the UK as we leave the EU. The Secretary of State champions and promotes Scotland’s interests at the heart of Whitehall every day, including at the Cabinet table.”