Sir Keir Starmer prepares to prepare country for war Big tax increases in this week’s budget – warned that the only alternative would be cuts to public services.

The Prime Minister will promise to protect “working people” but will also issue a stark warning that he and the Chancellor are choosing higher taxes rather than spending cuts or massively increasing borrowing as the way to balance the books in his Government’s first Budget. Will be delivered on Wednesday.

Labor MPs will simultaneously try to reassure businesses: The party can be trusted on the economy, I Meeting with executives can reveal that those working behind the scenes are focused on helping ministers drive growth.

But ministers have also faced questions on the issue, with leading economists, Opposition MPs and business leaders warning that ill-targeted tax increases would damage the economy. How do they define working people? They say it won’t face a financial hit.

Speaking in the Midlands on Monday, Starmer is expected to say voters are “tired of slow growth, stagnant living standards and collapsing public services”, adding: “They know austerity is not the answer. They have also seen the chaos that ensues when politicians allow borrowing to get out of control.” .”

It will signal that balancing the public finances will be a top priority in the Budget, despite a change in borrowing rules that will allow Rachel Reeves to finance long-term investments with new debt. The Prime Minister will say: “Politics is always a choice. It’s time to choose a clear path and embrace the harsh light of financial reality so we can come together behind a credible, long-term plan. “It’s time for us to run towards the tough decisions because ignoring them puts us on the path to decline.”

In the clearest sign that the Government would rather raise taxes than cut spending, Sir Keir added: “If people want to criticize the path we have chosen, that is their prerogative. But then let them explain a different side. If they think the government has grown too much, they should tell employees which public services they will cut. “If they don’t see our long-term infrastructure investment as necessary, they should tell working people how to grow the economy for themselves.”

The £2 cap on all bus fares will be ended in the budget, which will be based on the theme of “stability, investment, reform”, after the Department for Transport concluded the policy did not provide value for money. .

However, it is also expected that members of the Armed Forces will be exempt from having to pay VAT on private school fees, taking into account the difficulties faced by military families who have to move home frequently.

Conservative campaigner Ross Kempsell, who is campaigning on the issue, said: “I am extremely encouraged to hear whispers that the Government is considering exempting military families from VAT on independent schools. This is vital for families deployed on operations who rely on boarding school places to ensure continuity of education.”

Voters ‘support higher investment’

A majority of voters back plans to boost Budget investment in support of Rachel Reeves as she seeks to maximize growth without destabilizing markets.

The chancellor has confirmed he will change self-imposed fiscal rules that limit the amount of money he can borrow to fund longer-term infrastructure projects.

A YouGov poll conducted last week shows 64 per cent of the public think investment cuts, as planned by the previous Conservative Government, will harm the British economy.

The research found that most people who voted for Labor in the general election expected higher investment when the party was in power; This is another sign of encouragement for Reeves.

MPs appear to support a change in approach to public finances, with 59 per cent of MPs saying current borrowing rules are damaging long-term growth, according to the Survation poll.

Tom Railton, director of the Invest in Britain campaign, which commissioned both surveys, said: I: “Voters expect more public investment and Labor MPs know this is key to unlocking the economic growth they were elected to deliver. The Budget is a pivotal moment for the Chancellor. “It must ensure that its new fiscal rules deliver the levels of public investment the country needs.”

Labor Growth Group MPs will host an event for business leaders today where they will seek to reassure them that the party is united behind the need to increase private sector investment in the UK despite a significant increase in the tax burden.

Co-chairman Josh Simons said: I: “We know that businesses are frustrated that previous governments were diverted from the pursuit of growth by selfish backbenchers. “Today, we are announcing that the era is over.”

And deputy leader Chris Curtis added: “The reason we’re doing this is to give businesses a clear message that these are the days when the Government is being led astray by backbenchers who are throwing parties before the country runs out.”

Mervyn King, former governor of the Bank of England, said it was “very unwise” for ministers to promise not to increase income tax, national insurance, VAT or corporation tax, the Exchequer’s four biggest revenue raisers. He told Sky News that the Budget could lead to higher borrowing costs despite Reeves’ commitment to fiscal orthodoxy.

Paul Johnson, of the Institute for Fiscal Studies, said public services would still feel “squeezed” even after “one of the biggest tax-raising budgets ever”.

The Conservatives’ shadow Chancellor of the Exchequer, Gareth Davies, said: “On Wednesday, Labor looks set to deliver on its manifesto promises. “Although they have ruled out any changes to fiscal rules, they are now manipulating the numbers to curb borrowing and are preparing to raise taxes on working people.”