Rachel Reeves has been branded a “total fraud” for blaming Britain’s economic woes on Brexit as the nation braces for tax hikes in next month’s Budget. The embattled Chancellor described the impact of Brexit as “severe and long-lasting” as she signalled both tax rises and spending cuts are under consideration at the Treasury. Leading Brexiteers claimed Ms Reeves was wrong to pin the blame for difficulties on her watch on the 2016 decision to pull out of the EU.

Former Business Secretary Sir Jacob Rees-Mogg said: “It is simply untrue. Her problems would be far worse without Brexit.”

Sir Jacob claimed that if the UK was still in the EU “our national debt would be £78billion higher and our deficit £25billion worse”.

The Chancellor’s attack on Brexit comes days after Health Secretary Wes Streeting also blasted the decision to leave the EU, saying: “I’m glad that Brexit is a problem whose name we now dare speak.”

John Longworth, a veteran Brexiteer and former director-general of the British Chambers of Commerce who chairs the Independent Business Network accused Ms Reeves of being “a total fraud”. He said she had “created economic chaos” and driven up inflation and unemployment.

“Blaming Brexit is the last refuge of a scoundrel and clearly wrong as we are outperforming France and Germany despite this awful Government which has no idea how to create growth using the opportunities of Brexit,” he said.

Reform UK deputy leader Richard Tice said Sir Keir Starmer should “take responsibility” for the state of the economy.

He said: “It’s his budgets, his decisions and his miscalculations over the past year that have led this country to the brink. No-one is buying what Starmer is selling.

“He should take responsibility for the disaster that he has caused by appointing the most pro-tax, anti-growth Chancellor that I can remember.”

Tax rises are widely expected to fill a multi-billion pound “black hole” in the public finances. Estimates vary but Ms Reeves may need to find £30billion.

Shadow Chancellor Sir Mel Stride said: “Rachel Reeves doesn’t need to raise taxes. She needs to get a grip of government spending – including the welfare bill.

“Be in no doubt, this tax doom loop is down to the Chancellor’s economic mismanagement. Under Rachel Reeves we have seen inflation double, debt balloon, borrowing costs at a 27-year high, and taxes up – with more pain on the way in the autumn.”

Ms Reeves said the UK was “undoing” some of the “damage” of Brexit through its deal with the EU – including an “ambitious youth mobility scheme” – but added “there is no doubting that the impact of Brexit is severe and long-lasting”.

Trade specialist Shanker Singham urged the Government to take advantage of opportunities created by Brexit – and warned against aligning UK regulations with those of the EU.

He said: “Even the EU admits that its regulatory system damages competition and growth. The UK should have been using its freedom to improve its regulatory environment, where the biggest gains actually lie.

“Aligning to EU regulation negates these potential gains and leaves you only the costs. Both the Labour government and predecessor governments have failed to take advantage of this regulatory autonomy where the biggest economic gains lie.”

Ben Ramanauskas of the Policy Exchange think tank said: “Rather than blaming Brexit, the Chancellor should instead look at the tax system and red tape which are stifling growth in this country. If the Government is serious about growth then it will cut public spending so that taxes can be cut while slashing the red tape which makes it incredibly difficult and expensive to build new homes, offices, and energy infrastructure.”