The Government’s autumn Budget statement will be used to “rebuild Britain” and deliver on the change Labour offered at the election, Rachel Reeves is to pledge.
The Chancellor will make her speech at the Labour Party conference on Monday as ministers seek to move out from under the shadow of a row about donations.
After weeks of warning about a poor economic legacy left by the Conservative government, Ms Reeves is also expected to signal a path towards further public investment, which she will claim is the “solution” to the UK’s growth problem.
The Chancellor’s speech comes after Sir Keir Starmer vowed Labour would not return to an austerity agenda to deal with public spending pressures.
Ms Reeves will insist economic stability is “the crucial foundation on which all our ambitions will be built”, as she seeks to justify to Labour members the spending restrictions which are aimed at filling a £22 billion “black hole” in public finances.
Labour top brass is braced for a clash with the unions over one of these measures: the cut to winter fuel payments for most pensioners.
But Ms Reeves will join Sir Keir in maintaining “there will be no return to austerity” in an appeal to the Labour movement.
“Conservative austerity was a destructive choice for our public services – and for investment and growth too,” the Chancellor will say.
She is expected to add: “We must deal with the Tory legacy and that means tough decisions. But we won’t let that dim our ambition for Britain.
“So it will be a budget with real ambition. A budget to fix the foundations. A budget to deliver the change we promised. A budget to rebuild Britain.”
In a signal of Labour keeping its manifesto commitments, Ms Reeves will promise not to raise national insurance, income tax and VAT.
She will also say corporation tax is to remain at its “current level for the duration of this Parliament”.
Jeremy Hunt, the shadow chancellor, contested Labour’s assessment of the UK economy, and claimed Ms Reeves had “already damaged the UK’s international reputation by talking down her inheritance in order to score political points”.
He added: “If she believes in growth, where is the plan? People are beginning to suspect there may not be one.
“If all we get in the Budget is tax rises and employment laws that deter investment and job creation she will have thrown away a golden opportunity.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel