Rachel Reeves has suggested Britain’s economy would go into meltdown if she was forced to resign for breaking Labour’s election promises.

The chancellor insisted she was “trusted with the public finances” despite planning to increase income tax in the Budget – despite repeatedly promising not to do so.

In a highly-unusual pre-Budget speech on Tuesday, Reeves said “each of us must do our bit” as she struggles to fill a £30 billion black hole in the public finances.

On LBC, she was asked by Andrew Marr if she would resign if she has to rip up Labour’s manifesto pledge not to hike income tax, VAT or National Insurance.

Reeves said: “And what do you think would happen in financial markets if I did that?

“I have been able to build a reputation and have been trusted with the public fin

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