Labour was last night accused of ‘talking the economy down’ amid fears it is planning a string of punishing tax raids.

As official figures showed the national debt at its highest level since the early 1960s, a Treasury minister insisted the new Government ‘has inherited the worst economic circumstances since the Second World War‘, a claim made by Rachel Reeves in her first speech as Chancellor.

But the statement was dismissed as ‘baloney’ by one City economist, while another branded it ‘a political soundbite’.

Ms Reeves has ordered a review of the UK’s finances by the Treasury that looks set to pave the way for tax rises in an autumn Budget.

Figures from the Office for National Statistics (ONS) showed the Government borrowed £14.5 billion in June as spending outstripped tax receipts – far higher than the £11.5 billion expected. It pushed national debt up to £2.74 trillion, or 99.5 per cent of gross domestic product (GDP) – the highest debt burden since 1962.

The report triggered an immediate response from Treasury minister Darren Jones who said: ‘Today’s figures are a clear reminder that this Government has inherited the worst economic circumstances since the Second World War. But we are wasting no time to fix it.’

Former Tory MP Sir John Redwood, who stepped down at the election, said the claim ‘is simply not true. It is bizarre. They are talking the economy down’.

While the national debt was lower when the Tories came to power in 2010 at 65.3 per cent of GDP, it was higher every year from 1945 to 1961.

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And Labour has inherited a deficit – the amount a government borrows in a year as a percentage of GDP – of 4.5 per cent compared with the 10.3 per cent David Cameron grappled with after Gordon Brown was voted out of office.

At the same time, unemployment currently stands at 4.4 per cent compared with 7.9 per cent in 2010 and inflation is 2 per cent compared with 3.4 per cent 14 years ago.

A separate report from the ONS last week showed the economy grew by 0.9 per cent in the three months to May – the fastest pace of expansion for two years.

George Buckley, of investment bank Nomura, said: ‘Inflation is back to target, economic growth is rebounding strongly… confidence is up and unemployment is low.’

Simon French, chief economist at Panmure Liberum, said: ‘Growth is picking up, unemployment is low, and inflation is back at target. This is more a political soundbite than robust analysis.’

The upturn in the economy has raised questions about why Rishi Sunak chose to hold the election on July 4 rather than wait until the situation improved. Independent economist Julian Jessop said: ‘Rishi Sunak and Jeremy Hunt deserve more credit for putting the train back on the tracks. But a Labour government will reap the political benefits.’