Watch as Rachel Reeves unveils her plan for economic growth in a speech on Monday, July 29th.
The Chancellor will announce “very tough decisions” to tackle a public spending surplus of around £20 billion, but no tax increases are expected, a senior minister has said.
Speaking ahead of the statement, Cabinet Office minister Pat McFadden said Labour’s election promise of no increases in income tax, NI and VAT “remains in place”.
Reeves will outline the spending plans inherited from the previous government and announce the timetable for his first autumn budget, vowing to “restore economic stability”.
In the Commons, the Chancellor will tell the House of Commons that a Treasury spending audit he commissioned shows the previous government made a series of unfunded promises resulting in billions of pounds overspending this year.
She will also accuse the previous Conservative government of “concealing the true state of the public finances” amid expected cuts and delays to major infrastructure projects.
Meanwhile, the Conservatives are trying to suggest that Labour is trying to create a narrative in its first Budget that lays the groundwork for future tax rises.