'The biggest lie we've ever had!' Rachel Reeves issued warning over 'catastrophic mistakes' in Budget

He highlighted that despite the negative messaging from Labour, the UK was due to be the fastest growing economy in the G7.

Hunt warned that the perception being sent out to voters and businesses, along with the fears of tax cuts, could scupper the chances of growth.

He told the Conservative Party's annual conference in Birmingham: “They will get worse if Labour makes catastrophic mistakes in the budget and hikes up tax in a way that destroys growth.

"I think one of the biggest lies we’ve had since Labour came to office is this nonsense about having the worst economic inheritance since the Second World War."

Hunt said no independent economist has supported the Treasury and Government’s view on the economic outlook.

He added: "You don’t have to take my word for it, I mean just read this week’s Economist where there’s an article saying that (Reeves) could have actually not have a black hole of £22 billion but a surplus of £39billion."

The South West Surrey MP said he was concerned that Labour’s messaging on the economy could put people and businesses off from investing in British firms.

The shadow chancellor said: “My worry is that Labour believes its own propaganda and starts taking a whole series of decisions, particularly on things like Capital Gains Tax, which have a massive impact on deterring the investment in the economy that we really need.”

He added: “Even the Labour Party don’t believe it, otherwise we wouldn’t be having this massive row over the winter fuel allowance.”

Speaking on the main stage of the Conservative Party Conference, he later said: “When it comes to the big decisions, we need to secure our economic growth, I think people are beginning to wonder whether Labour actually has a plan at all, because we’ve had absolutely nothing in the 12 weeks that they’ve been in office.”

Upon entering the Treasury, Reeves claimed she had uncovered £22billion in unaccounted for spending.

The Chancellor warned that tough choices lay ahead and said that difficult decisions would be made in the upcoming Budget. She also confirmed announced that universal Winter Fuel Payments for pensioners would be axed.

Defending her position last week she told Labour's annual conference the Tories were to blame stating: "A £22 billion black hole – which, if not tackled now, will pose risks for years to come.

"That included more than £6billion overspend on the asylum system – including their failed Rwanda policy - almost £3billion on rail projects, the nation’s reserve – intended for genuine emergencies – set to be spent three times over only three months into the financial year.

"They were reckless. They were irresponsible. And they acted in that way, not because they believed it was right for our country – but because they believed it might rescue their party from defeat."