A 14-page report by the European Reform Group (ERG), consisting of 100 Tory MPs, has been given to minsters in an attempt for a visa scheme along the lines of the ones currently operating in Australia and the United States.

The scheme would allow visitors from the European Union and other countries to make multiple visits to the UK over a two-year period.

Should such a scheme be introduced it is believed it would bring in around £150 million annually.

The ERG report, prepared by Craig Mackinlay, says Britain should adopt a similar plan to the US, which charges $14 (£10) for a visa waiver that allows multiple entry over two years. The Australian visitor visa costs Aus$20 (£11).

It says: "We could adopt the US system and apply it to a visa waiver scheme for visitors from the EU and other countries we have a visa waiver programme with. Such schemes are commonplace internationally." The system would apply to other countries which already offer a visa waiver system for British visitors.

"Charging visitors £10 a time would raise significant sums. For example, 25.5 million EU visitors a year paying £10 and applying a time-limited multiple entry use within the fee could provide up to £150 million annually.

"Given the Borders budget is currently some £550 million, moving into line with what other nations are doing would fund a material increase in the Borders budget."

It adds: "In addition, the visa waver system would have significant security benefits. The Government should increase its funding for the UK Border Force, paid for by a visa waiver system charge. This would enable investments in new technologies and innovation to ensure that Britain is ready on day one for Brexit and that the border is as strong as it can be."

The MPs, writing in a forward backed Mr Mackinlay’s idea.

The MPs said: "The EU is investigating implementing its own version of charges on travellers; the US already does, the UK should reciprocate and in doing so raise £150million a year to invest in our borders.

"A new modern digital border funded by those that use it would save travellers time, help keep the UK open to genuine visitors while giving the UK the information it needs to exclude those that are not."

They added: "Mr Mackinlay's paper sets out that although we are leaving the EU, we are not leaving Europe. Cooperation with our neighbours on borders will remain. With a new advanced border, the UK can gather intelligence and cooperate with the EU to maintain our collective security and tackle the scourges of people trafficking, terrorism and organised criminality."

The Home Office said: "After we leave the EU, we will put in place an immigration system, which works in the best interests of the whole of the UK."