RACHEL Reeves will today hail Britain’s “immense” potential but warn the country faces economic “ruin” if it doesn’t balance the books.
The Chancellor is seeking to move away from the bleak warnings that have marked the early days of a Labour Government, pitching a more optimistic vision for Britain’s future.
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She told Times Radio she is “excited” about the future and she has “never been more optimistic about our country’s fortunes”.
She also pledged there will be no “return to austerity” under a Labour Government as it continues to come under criticism in a row over freebies.
But her comments come ahead of her keynote speech at Labour Party conference later today, where she will warn of “tough choices” looming in next month’s Budget, with potential tax hikes and spending cuts needed to plug a £22 billion gap in public finances.
Her decision to strip winter fuel payments from 10 million pensioners is also likely to be the focus of a fierce debate at the gathering – with major trade unions demanding a U-turn on the policy.
At least five unions – Unite, Unison, Aslef, the FBU and the CWU – are all expected to urge delegates to vote for the motion, according to union sources.
Labour MP for York Central Rachael Maskell last night piled pressure on the Government as she contrasted the scrapping of the universal winter fuel payment with accepting freebies.
Writing on X, formerly Twitter, she said: “I have been sickened by revelations of ‘donations’. It grates against the values of the Labour Party, created to fight for the needs of others, not self. Meanwhile, pensioners are having their winter fuel payments taken, risking going cold. I trust conference votes to change this.”
Ms Reeves will deliver her speech in the shadow of the row over freebies accepted by the PM and a number of Cabinet ministers, including herself.
Setting out the principles behind her Budget, she will say: “I can see the prize on offer if we make the right choices now. And stability is the crucial foundation on which all our ambitions will be built, the essential precondition for business to invest with confidence and families to plan for the future.
“The mini-Budget showed us that any plan for growth without stability only leads to ruin. So we will make the choices necessary to secure our public finances and fix the foundations for lasting growth.
“Stability, paired with reform, will forge the conditions for business to invest and consumers to spend with confidence. Growth is the challengeand investment is the solution.”
The Chancellor will also set out new measures to crack down on tax dodgers to help claw back billions of pounds in lost revenue to help fund public services.
She plans to parachute 5,000 investigators over five years to crack down on tax avoiders – with 200 set to be brought in within weeks.
The Cabinet Minister will say: “If you make your home and do your business in Britain, then you should pay your taxes here too. That is why we will reform, modernise and invest in HMRC.
“We will give it the resource it needs to go after those who are avoiding or evading tax, and we will modernise it so we have a system that is fit for purpose.”
Treasury Minister James Murray will be appointed as chairman of the HMRC board to help recoup more cash into public services such as the NHS.
Businesses will also be consulted later this year on ‘e-invoicing’ allowing for data to be transferred between firms that will help reduce burdens for firms.