LONDON — British Treasury chief Rachel Reeves will present her first budget in Parliament on Wednesday, a tightrope move aimed at finding billions of dollars for investment through borrowing and tax increases without hurting businesses or increasing taxes on workers.

This is the Labor government’s first budget in almost 15 years and the first budget presented by a female finance minister. This could determine the length of the current parliament, which runs until 2029, and the party’s ability to win a second term at the next election.

Leaving his office at 11 Downing Street with the famous red briefcase containing the budget in his hand, Reeves has a difficult balancing act.

He has pledged to “put more pounds in people’s pockets”, provide much-needed financial support for public services such as schools and hospitals and grow the economy. All of this needs to be done within the confines of public finances, which the government says are in much worse shape than thought when they were elected in July.

Prime Minister Keir Starmer has warned that the budget will reflect the “harsh light of fiscal reality” but will not return to the austerity that marked the early years of the previous Conservative government after it was first elected in 2010.

The centre-left Labor Party was elected on July 4 after promising to end years of turmoil and scandal under Conservative governments, grow Britain’s economy and restore battered public services, especially the state-backed National Health Service.

The centre-left government argues that higher taxes and limited public spending increases are needed to “repair the foundations” of the economy, which it claims has been weakened by 14 years of Conservative government.

The Conservatives say they have a growing economy, albeit modestly, lower debt levels and a smaller deficit than many other Group of Seven rich countries.

Pumping money into health, education and housing is a priority for the new government, made difficult by a stagnant economy hobbled by rising public debt and low growth. The government also says there is a £22 billion ($29 billion) “black hole” left in the public finances by the Conservative government.

This means the budget will definitely include tax increases; But Labor has pledged not to increase the tax burden on “working people”, a term whose definition has been hotly debated in the media for weeks. The Treasury announced that nearly 3 million lowest-paid workers will receive a 6.7 percent pay increase next year and the minimum wage will rise to 12.21 pounds ($15.90) ​​per hour.

Reeves, Britain’s first female finance minister in nearly 800 years, is expected to change the government’s debt rules so it can borrow billions more for the health system, schools, railways and other major infrastructure investments. projects and raising money by increasing taxes paid by employers, not employees.

“The UK is at a critical juncture: after years of stagnant growth and deteriorating public infrastructure, a sustained increase in government investment is vital to stimulate long-term growth and raise living standards,” said Monica George Michail, an economist at the independent think tank. tank National Institute of Economic and Social Research.

While the budget will be one of the most important in years, Reeves is confident it will no doubt cause concern in financial markets. Two years ago, Liz Truss’s short-lived premiership collapsed after a series of unfunded tax cuts shook financial markets and sent borrowing costs soaring. His successor, Rishi Sunak, sought to gain control over public finances but was unable to dispel the idea that the Conservative Party had lost control of the economy; This was probably the biggest reason why he suffered his worst electoral defeat in 200 years.

The rise in the UK’s borrowing costs in the markets as we approach the budget announcement shows that there is some uneasiness in the coming period.