It comes after figures yesterday showed household borrowing has continued to grow, with unsecured consumer credit increasing by £1.7bn in May.

Vince Cable has warned the stark figures show the economy is on an unsustainable footing and that this could have “severe consequences” when combined with the impact of an extreme Brexit.

Liberal Democrat Shadow Chancellor Vince Cable said:

“We are seeing the lowest level of household savings in half a century.

“Rising prices and falling wages since the Brexit vote mean families are increasingly unable to live within their means or save for the future.

“Our economy’s reliance on consumer spending, propped up by debt, is not sustainable and combined with an extreme Brexit the consequences could be severe.

“It is our responsibility as MPs to pull the economy back from the precipice by ensuring Britain remains in the single market and customs union.

“Just one-fifth of Labour MPs backed staying in the single market yesterday. I hope that more will see sense as the economic consequences of an extreme Brexit become clear.”