However, the Paris-based thinktank also said the economy would see a "significant boost" if there was another referendum leading to Brexit being reversed.

Liberal Democrat Deputy Leader Jo Swinson commented:

"This is a significant intervention the government cannot afford to ignore.

"Brexit has already caused the UK to slip from top to bottom of the international growth league for major economies.

"This will only get worse if the government succeeds in dragging us out of the single market and customs union, or we end up crashing out of Europe without a deal.

"The case for protecting the economy by reversing Brexit is getting stronger by the day.

"Once the facts are clear at the end of this process, the British people must have the final say with a chance to exit from Brexit."

The Liberal Democrats have always advocated democratic reform of the House of the Lords. But the brutal truth is that this Government simply has no appetite for the fundamental reform which the House of Lords desperately needs.

"The Liberal Democrats fought hard for democratic reform of the Lords during the coalition period, but were thwarted by a conservative alliance of Tory and Labour MPs.

"The Burns report makes interesting proposals for reducing the size of the Lords, which everyone agrees is necessary. But we should not be having to rely on a backbench committee to make any progress on the issue. We've had 1,000 years of unelected peers and we're still discussing the solutions in back rooms, rather than driving forward with democratic change

Rising food prices made a large contribution to the change, with an increase of 0.8% between August and September 2017, compared to a 0.4% fall last year.

It comes as analysis by the Institute for Fiscal Studies has found the benefits freeze is expected to leave over 10 million families an average of £450 a year worse off in real terms by 2020.

The increase is thought to reflect both a genuine rise in hate crime around the time of the EU referendum and ongoing improvements in crime recording by the police.

Commenting, Liberal Democrat Home Affairs spokesperson Ed Davey said:

"This disgraceful rise in hate crime demands a much stronger response from Government than we have seen.

Its findings show that under WTO rules, the average household would see price rises worth an extra £260 a year, while over three million families would see price rises of over £500 a year.

The report finds that low-income households would face the biggest cost pressure.

Liberal Democrat Brexit Spokesperson Tom Brake commented:

Vince Cable said:

"News of this massive write-down shows our economy is in real trouble. Jobs are being lost at major employers such as Vauxhall and BAE, the pound has already lost 20% of its value in a year, our balance of trade and productivity are poor, and we have fallen to the bottom of the growth league for major economies.

"The Lib Dems will work with any party to stop a 'No Deal' scenario and would vote against a No Deal outcome in Parliament. 'No Deal' would mean ports at a standstill with ferries unable to unload and load, aircraft stranded at airports and manufacturers operating 'Just in Time' production reduced to 'Never on Time'.

I am proud to lend my support to National Hate Crime Awareness Week, which serves as an important reminder that the tenets of hate, division and prejudice have no place in 21st century Britain.

Everyone has the right to be who they are, without fear of abuse, intimidation or violence. Our nation is a rich tapestry of different identities and the mosaic of people that make up our communities is to be praised and celebrated. It is our duty to ensure that every person, regardless of race, religion, sex, sexuality, nationality, age or disability, is treated with the dignity and respect they deserve. We must destroy the toxic, far-right rhetoric, which does nothing but divide our communities; such views are entirely incompatible with the core values of our country.