Shadow chancellor John McDonnell has claimed Philip Hammond's spending plans "offer no hope for the future" after six "wasted" years.
Mr McDonnell said the figures outlined in the Autumn Statement "speak for themselves", with economic growth, wage growth and business investment down.
He added the Government's "long-term economic plan" has failed.
Mr McDonnell, replying to the Chancellor's statement, said: "Today's statement places on record the abject failure of the last six wasted years and offers no hope for the future."
He said the Government had failed on its deficit target, debt target and welfare cap.
The Labour frontbencher added: "We've heard today there'll be more taxes, more debt and more borrowing.
"The verdict could not be clearer - the so-called long-term economic plan has failed.
"As the Treasury's own leaked paper revealed, the Government knew it had failed before the referendum result was announced.
"We now face Brexit, the greatest economic challenge of a generation, and we face it unprepared and ill-equipped."
Speaker John Bercow had to calm MPs early in Mr McDonnell's reply, telling them not to shout out.
He said: "Stop it. It's juvenile, low grade and hugely deprecated by the public, whose support we should be seeking and whom we should try to impress - not repel."
Mr McDonnell said the country had "expected a change in direction after those six wasted years" of a Conservative-led government.
He added: "Instead we have seen further cuts to earnings for those in work through cuts to Universal Credit and a living wage increase that is lower than expected under the previous chancellor.
"This is a new Conservative leadership with no answers to the challenges facing our country following Brexit, and no vision to secure our future prosperity."
He said Labour "respects" the decision of the EU referendum, but accused the Government of a "chaotic" handling of Brexit.
He added: "The Chancellor must now do the right thing for British workers and businesses. He must insist on full, tariff-free access to the single market.
"He and the Treasury know that's what will give the best deal for jobs and prosperity here.
"It may not be in the Chancellor's nature, but in the national interest I urge him to stand up to the Prime Minister and the extreme Brexit fanatics in her Cabinet."
Mr McDonnell attacked the Government over its bid to woo "just about managing" voters - the so-called Jams.
He said: "We have had a month of briefings from the party opposite on those people who are called just about managing - the Jams.
"To the party opposite these people are just an electoral demographic. To us they are our friends, our neighbours and the people we represent."
His comments sparked cries of indignation from the Tory benches.
Mr McDonnell added: "We've seen productivity stagnate, but there's nothing in this Autumn Statement on the scale needed to overturn those six wasted years.
"If the Chancellor really wants to make a fair tax system as well, he can start by bringing back the 50p rate for the very richest in our country."
He accused the Tories of "familiar hollow rhetoric" on tax avoidance, given HMRC resources have been cut by 40% since 2000, and urged the Chancellor to commit to a higher living wage.
He also criticised the failure not to overturn cuts to Universal Credit, saying: "We do not want the blow softened, we want it lifted altogether."
Mr McDonnell added: "These are the very people who are working hard to deliver for their families, and the Government is betraying them."
He also said low-income families "remained in the Chancellor's firing line", adding: "Cutting £30 a week from the support of these disabled people receive. It is scandalous in our society."
Mr McDonnell attacked the Government's funding commitments to the NHS and said local authorities were at a "tipping point" with social care services.
He called for Mr Hammond to provide additional funding for social care as he said cuts would ultimately hit the NHS.
He said: "Many elderly people will remain trapped in their homes, isolated and lonely, lacking the care they need because of these continuing cuts to social care.
"You can't cut social care without also hitting the NHS."
Mr McDonnell criticised the Government for saying it was providing an extra £10 billion to the health service.
"The real amount is less than half that claimed," he said. "The result: We now have 3.9 million people on NHS waiting lists, more than ever. Many of those 3.9 million people are waiting in pain and they got no relief today."
On the issue of education, Mr McDonnell accused the Government of overseeing the "biggest real-terms cuts" for four decades.
He said: "One pound in every seven is being cut from FE college budgets and Conservative policy has saddled a generation of students with a lifetime of debt.
"How can a Government seriously talk about supporting a 21st century economy when they are planning to pour tens of millions into the failed 20th century policy of grammar schools?"
He also claimed the Government's decision to abolish letting agent fees was a win for Labour.
He said: "This U-turn is a victory for Labour's campaigning against both the tenant tax and lettings fees."
But he insisted nothing in the Autumn Statement would help young people get on to the housing ladder.
He said: "Nothing announced today is of the scale needed to suggest it will remain anything other than a dream."
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