Prime Minister Sir Keir Starmer will endorse Chancellor Rachel Reeves’s Budget in a speech on Monday, insisting it will ease cost-of-living pressures, stabilise the economy, and strengthen growth.
Starmer is expected to argue that although the Office for Budget Responsibility (OBR) has downgraded growth forecasts from next year, the UK’s current economic performance is beating forecasts, and the government must now go “further and faster” on pro-growth reforms.
His remarks come as the Treasury faces scrutiny over whether it presented an overly bleak picture of the economy ahead of the Budget.
The Conservatives have accused Reeves of misleading the public by exaggerating the challenges facing the public finances, despite more positive OBR projections.
Downing Street has rejected the claims, insisting the chancellor acted transparently and responsibly.
Starmer will emphasise plans to cut “unnecessary red tape” around infrastructure projects, after a new report found the UK is now the most expensive place to build nuclear power facilities.
Business Secretary Peter Kyle will lead efforts to apply the report’s findings across major infrastructure sectors.
Starmer is also expected to argue that protecting investment and public services is essential to driving long-term growth.
The political fallout has intensified since OBR chairman Richard Hughes revealed he informed Reeves on 17 September that the public finances were healthier than widely believed.
Conservatives allege Reeves used pessimistic messaging as a smokescreen to justify tax rises. Tory leader Kemi Badenoch went further, accusing the chancellor of lying to the public and calling for her dismissal.
The Treasury maintains Reeves made decisions aimed at reducing living costs, improving NHS waiting lists, and increasing fiscal headroom.