The budget will cover the “harsh light of fiscal reality”, said Sir Keir Starmer

The Labor government’s first budget will face the “harsh light of fiscal reality”, but “brighter days are ahead”, Sir Keir Starmer said in a speech on Monday.

Chancellor Rachel Reeves will present the budget on Wednesday and set the tone for its announcement, the Prime Minister will warn of the “unprecedented” economic situation and the need to face “long-term challenges ignored for fourteen years”.

Mr. Keira he is expected to tell the country: “This is an economic plan that will change Britain’s long-term growth trajectory for the better.”

Changes anticipated in the budget include an increase in the employer’s social security contribution by at least one percentage point and the elimination of tax exemptions for private schools.

Labor promised in its manifesto that it would not raise taxes on “working people” and clearly ruled out increases in VAT, National Insurance and income tax.

However, the party is accused of hypocrisy in connection with the expected decision to extend the freeze on income tax thresholds.

Ministers also came under pressure to define who later fell under the concept of “working people”. Sir Keir suggested that the definition did not include people earning income from assets such as property.

The Prime Minister is expected to say on Monday that he will not offer Britain’s problems as an “excuse”, adding: “I expect to be judged on my ability to deal with this situation.

“We need to be realistic about where we are as a country. This isn’t 1997, when the economy was decent but public services were on their knees.

“And this is not 2010, where public services were strong but public finances were weak. These are unprecedented circumstances.

“And that’s before we even get to the long-term challenges that have been ignored for fourteen years.

“An economy riddled with weakness in productivity and investment. A country that needs urgent modernization to face the challenges of an unstable world.”

Anticipating criticism, Sir Keir is set to tell the public: ‘It’s time for us to run towards the hard decisions, because ignoring them has set us on a path to decline. It’s time to ignore the populist chorus of easy answers… we’re never going back to that.

“If people want to criticize the path we have chosen, that is their prerogative. But let’s then let them point us in a different direction.”

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“Everyone can wake up on Thursday and understand that a new future is being built, a better future,” he is reported to have said.

Ms Reeves wants to fill a £40bn black hole to fix public services and strengthen the economy.

Some of the spending plans have already been confirmed, including: £1.4 billion to rebuild failing schools and a £10 billion cash injection into the NHS to tackle growing waiting lists.

Education Secretary Bridget Phillipson has repeatedly said in an interview with The Times that she cannot speculate on how the Chancellor intends to fill the black hole in the state’s finances. Sunday Morning with Trevor Phillips.

However, she stated: ‘We stated in our manifesto that we will not increase VAT, social security contributions or income tax for working people. We will stick to this. And they won’t have to pay higher taxes on the pay stubs they see after the budget is passed.”