Rachel Reeves will claim Labour “has the right plan for Britain” and declare the economy is stronger under her watch at the Spring Statement.
The Chancellor is expected to say the economy is “stronger and more secure” when she addresses the Commons on Tuesday afternoon.
At the beginning of February, the Bank’s GDP forecasts for 2026 were downgraded to 0.9 per cent from 1.2 per cent, and to 1.5 per cent from 1.6 per cent for 2027.
But today, Ms Reeves will say: “This Government has the right economic plan for our country… in a world that has become yet more uncertain.
“Stability in the public finances, investment in infrastructure and reform to our economy.
“Building growth not on the contribution of a few people or a few parts of the country, but in every part of Britain with a state that doesn’t stand back, but steps up.”
Rachel Reeves will not announce any new tax or spend policies in her Spring Statement
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PA
She will later add: “Because of the decisions we have already taken, we have a stronger and more secure economy. Inflation and interest rates falling. And in every part of Britain, working people are better off.”
Ministers – including the Chancellor herself – have played down expectations of the spring statement, and said no new tax or spend policies will be announced.
Ms Reeves could still make minor changes to tax policy – which may risk accusations of deploying stealth taxes.
Her address has instead been sold itself as a response to the latest economic forecasting by the OBR.
Rachel Reeves spoke to Sainsburys’s workers in February about the state of the economy
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GETTY
Opposition parties have however called on Ms Reeves to use the statement to make significant changes.
The Liberal Democrats, in another attack on Labour’s relationship with Donald Trump, have urged the Government to use the statement to publish an assessment of the pharmaceuticals deal with the US.
The agreement between the two countries means the US does not impose tariffs on British made drugs, but in return the UK pays more for access to American medicines.
Liberal Democrat-commissioned polling claimed the majority of Britons want the deal to be abandoned and for cash spent on US medicines to instead be spent directly on care in the UK.
While small businesses have warned that 400,000 UK firms could be forced to shut down if their concerns go unaddressed on Tuesday.