Rachel Reeves will become the first Labour chancellor to deliver a budget in 14 years on Wednesday as she outlines the package of measures she claims will “rebuild Britain”.
Reeves, the first female chancellor, is expected to outline the budget’s three priorities when she addresses MPs at 12.30 pm, namely: fixing the NHS, rebuilding Britain and protecting working people’s payslips.
At the despatch box, she will vow the budget takes the difficult but necessary decisions to “restore economic stability” and begin a “decade of national renewal”.
The chancellor will aim to plug the £22 billion black hole Labour claims was left by the previous Conservative government. Reeves is expected to insist there are no shortcuts to “fixing the mess the Conservatives left” — but will add that the prize on offer is “immense”.
The chancellor will say: “My belief in Britain burns brighter than ever. And the prize on offer 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.”
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Reeves will add: “This is not the first time that it has fallen to the Labour Party to rebuild Britain. 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.”
It was announced on Tuesday afternoon that the budget will raise the national minimum wage by 6.7 per cent next year.
The above-inflation 6.7 per cent increase — worth £1,400 a year for an eligible full-time worker — is larger than what had been predicted in the long lead in to the autumn budget. The Treasury has also announced that the national minimum wage for 18 to 20-year-olds will rise from £8.60 to £10.00 an hour. It amounts to the largest increase in the rate on record.
The £1.40 increase means full-time younger workers eligible for the rate will see their pay boosted by £2,500 next year.
The Department for Business and Trade estimates that over 3 million workers will directly benefit from the 2025 National Living Wage increase and that nearly 200,000 workers will benefit from the increase to the National Minimum Wage for 18–20-year-olds.
The prime minister chaired a political cabinet meeting, with civil service officials excluded, on Tuesday ahead of the budget.
The PM told attendees that the budget would show that the government is “choosing to fix the NHS, rebuild Britain and protect the payslips of working people”, a Labour spokesperson commented.
Keir Starmer also “highlighted that tough choices are necessary to stabilise the economy and rebuild our country”, the spokesperson added.
Reeves told ministers: “The Labour Party promised there would be no return to austerity and the budget tomorrow would deliver on that promise.”
Josh Self is Editor of Politics.co.uk, follow him on X/Twitter here.
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