Prime Minister Keir Starmer is set to lay out a stark picture of the UK’s economic state in a speech on Monday ahead of this week’s Autumn Budget.
According to the BBC, Starmer will warn of “unprecedented” economic challenges and the “harsh light of fiscal reality” whilst speaking in the West Midlands.
This comes after the prime minister has previously pointed to a “painful” Budget as the government grapples with what it has dubbed a £22 billion “black hole” in public finances.
A string of tax hikes are expected to be unveiled in the Budget on Wednesday, including higher employer national insurance contributions and an end to stamp duty relief.
Changes to UK fiscal rules have also been signalled by Chancellor Rachel Reeves, fuelling speculation tens of billions of pounds worth of spending plans will be unveiled.
Goldman Sachs analysts last week forecast Reeves to hike current government spending by £30 billion annually through the Budget and unveil tax increases worth £25 billion.
“We choose a different path: honest, responsible, long-term decisions in the interests of working people,” Starmer will say.