Lizzie Cundy has launched a blistering attack on Chancellor Rachel Reeves stating that it is “time to resign” as the UK’s economy teeters on the edge.

Her remarks came as debate continues over the Chancellor’s potential plans for income tax, with speculation mounting that Labour may consider breaking a key election pledge.

Ms Reeves is reportedly weighing up an income tax rise in next month’s Budget to help plug a multibillion-pound gap in the public finances.

Some advisers in both the Treasury and Downing Street believe an income tax increase could be the only reliable way to raise enough revenue to avoid further tax hikes later in the parliament.

Lizzie pointed to recent figures showing that the Government borrowed £20billion in September alone, with national debt climbing towards £3trillion and around £100billion borrowed just six months into the financial year.

She questioned how the Government plans to fill the growing fiscal black hole while warning that the wealthy are leaving the country in record numbers around 16,500 expected to depart by the end of the year.

Speaking on GB News, she said: “All I can think of are those on benefits. It’s not going to work, Rachel. You really don’t have a clue.

“And you know who I blame? Keir Starmer because he had the worst judgement ever putting you in this position.

“You lied, I’m sorry, you did, on your CV. But I hear there’s still a job going at Halifax, and I totally recommend it.

“But don’t worry I’m going to wipe away the tears, because I’ve got the solution.

“The solution is for you to resign. That’s right. Resign, Rachel. Do it now. Tell Keir Starmer we’ve had enough.

“Our economy is on its knees. We can’t be taxed anymore. You said you wouldn’t tax working people but that’s all you’ve done.

“From farmers to pensioners who’ve worked all their lives, National Insurance hikes through the roof, hospitality businesses on their knees.

“Enough’s enough. Resign, Rachel and do the right thing.”

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According to sources cited by The Guardian, insiders say Ms Reeves is wary of the political fallout such a move could trigger, particularly after already breaching earlier commitments by raising national insurance last year.

The Treasury is reportedly divided over which income tax rates could be targeted if the Chancellor proceeds with a rise.

One option under consideration is adding 1p to the basic rate of income tax, which could raise more than £8billion for the public purse, but such a move risks deepening cost of living pressures for millions of workers.