Sir Jacob Rees-Mogg has said Andy Burnham’s spending plans will lead to a financial crisis in the UK.

Speaking on GB News he said: “Squeezed until the pips squeak. That seems to be the new motto of Mr Burnham.

“£38 billion – just wait until he comes to office. He will go, he will see our sovereign Lord the King. He will kiss hands. He will be given the seals of office for First Lord of the Treasury. The Prime Minister doesn’t actually have any seals of office for itself.

“And then he will be after your money. Tax rises coming in to meet the endless expenditure that socialists always like to have.

“The plan on welfare thinks that the budget is absolutely fine and dandy. No proposal to reduce it. No proposal to cut back. No proposal to introduce more checks. Just, ‘It’s fine, and perhaps it could grow a little bit more slowly.’

“But we know that taxation is taxation by consent. You cannot, in the end, get more money out of people than they are willing to pay.

“If you try, they won’t work, they won’t buy goods, they won’t sell assets that they own. They will not contribute to a system that they think is squeezing them too hard, or which they can’t afford to pay into.

“And we know that 38% of GDP is the maximum that taxation ever gets to for any length of time in this country.

“It is already proposed by Rachel Reeves’ forecast that it will go up to over 40 percent, but that won’t be enough for Labour’s spending plans. It will have to go up further, but they won’t raise the cash.

“Ultimately, this will lead to a financial crisis. Ultimately, it will lead to spending cuts. And it would be better to plan the cuts now, to do them intelligently and thoughtfully and minimise the pain that will come from them, rather than to think that the British taxpayers’ credit card will go on forever.”