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Labour promised to increase the department's budget to 2.5% of GDP – but have refused to say when the extra funding will come in.
Her comments come after Iran launched hundreds of missiles at Israel last night.
But Tom Tugendhat maintained a Conservative government has often "served this country well".
"Will you publish legal advice on arms exports to Israel?"
"I can take you to streets in Oldham where no one speaks English," the new leader of Reform said.
The chancellor mentioned the nickname three more times throughout the interview.
The Today host pointed out just one tax is actually coming down.
"Totally out of touch."
"It’s an unforgivable blunder to utter such words on the nation’s main morning programme."
She tearfully told BBC Radio 4's Today programme, "I have never told this story properly."