The Chancellor will on Wednesday vow to reject austerity and “rebuild Britain” in Labour’s first Budget in 15 years.
Rachel Reeves is expected to say “the only way to drive economic growth is to invest, invest, invest” as she becomes the first women ever to lay out the nation’s finances.
Fixing the NHS and bringing down hospital waiting list is at the heart of the spending review, the Chancellor is expected to say. There will also be cash for more affordable homes and investment to rebuild schools.
But it will come at a price and Ms Reeves will outline how she expects the Government to make billions of pounds in savings, including on its benefits bill.
Employees will not face higher taxes in their payslips and those on minimum wage will get a salary boost of up to £2,500 a year.
But businesses are braced for an increase in National Insurance as the government seeks to plug a £22billion blackhole in the public finances.
“My belief in Britain burns brighter than ever,” Ms Reeves is expected to tell the Commons. “And the prize on offer to today is immense.
“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.
“And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts. To deliver that investment we must restore economic stability.”
Ms Reeves will say that this Government will reject austerity, in favour of prioritising “economic stability, investment and reform”.
The Chancellor is expected to ease her debt fiscal rules to borrow some £20 billion extra to fund transport and other infrastructure projects to boost economic growth in the UK.
However, the move has sparked warnings that borrowing more could put upward pressure on interest rates which would feed through into increased mortgage bills.
“This is not the first time that it has fallen to the Labour Party to rebuild Britain,” Ms Reeves is set to add.
“In 1945, it was the Labour Party that rebuilt our country out of the rubble of the Second World War. In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology. And in 1997, it was the Labour Party that rebuilt our schools and hospitals.
“Today, it falls to this Labour Party, this Labour government, to rebuild Britain once again.”
