The Remainer younger brother of Boris Johnson, who resigned while transport minister under Theresa May, accused her of offering MPs a choice between "vassalage and chaos", as he warned a no-deal exit would "inflict untold damage on our nation".
"Boris Johnson WILL resign rather than go to Brussels for an extension".
"We're ... not going to be tricked or conned by Johnson so we're looking at every way in which, having secured the legislation, he can't wriggle out of abiding by the law and implementing it", McDonnell said.
Corbyn said Labour, the biggest opposition party, would only vote for an early election if the prospect of a no-deal Brexit was taken off the table.
The prime minister was dealt a further personal blow when his brother Jo said he was quitting his junior ministerial role and not contesting his seat in parliament in the new ballot.
The current shortest serving PM was George Canning, who served in office for just 118 days before his untimely death from pneumonia in August 1827.
"It is now time for the people to decide after parliament has failed them so we can resolve this once and for all", a Downing Street spokesman said.
His resignation comes as discontent grows in the Conservative Party after Boris Johnson expelled more than 20 MPs after they voted to delay Brexit.
Johnson remained determined to secure an election after lawmakers on Wednesday rejected his attempt to trigger a snap poll.
The Daily Mail shot back by calling Labour leader Jeremy Corbyn a "chicken" for refusing on Wednesday to back Johnson's proposal to hold a general election on October 15.
Discontent in the Conservative Party has grown in recent days after Boris made a decision to expel 21 senior MPs from the party after they backed a bill that would see Brexit delayed until 2020.
"We do have flexibility within the fleet also to shift volumes, and we do also have a strong relationship and a good fleet plan together with Airbus so we can make sure we capture both upsides that come, and also if there is a dampening in demand in there", Lundgren told reporters when asked how the airline was placed to deal with the economic fallout from a no-deal Brexit.
He also acknowledged there were splits in the party about the timing of a general election, saying that the leadership was in contact with legal experts and other opposition parties about what to do.
Johnson, the face of the 2016 Vote Leave campaign, has pushed for an election on October 15, two weeks before the United Kingdom is due to leave the European Union, though opposition parties are debating which date they would accept.
While sterling rose on parliament's bid to block a no-deal exit, an election before Brexit would allow him, if he won, to repeal the blocking bill, which was passed by 329-300 and then 327-299 in the House of Commons on Wednesday.
A cross-party alliance of MPs moved Tuesday to take control of the parliamentary agenda, setting the stage for another vote on Wednesday which could see MPs pass legislation that would delay Brexit until January 31 unless an exit deal is approved beforehand.