Rachel Reeves will signal Labour’s plans to cut government departments and the Civil Service as the new administration looks to accuse Rishi Sunak of “covering up” problems with the economy.
The chancellor is set to speak to the House of Commons on Monday following a review of the government finances after taking office at the start of the month.
It has been reported that Ms Reeves will reveal a £20bn “black hole” she has found in the books – although the Conservative Party argues she would have been aware of this before taking office.
Follow a Sky News special programme on Ms Reeves’ speech from 3pm on Monday on Sky channel 501, Virgin channel 602, Freeview channel 233, on the Sky News website and app or on YouTube.
Ms Reeves will reveal the date of this year’s budget, with speculation Labour are considering raising taxes in that fiscal event.
Her speech will take place at some point after 3pm, depending on what other business is happening in the House of Commons.
Monday’s announcement will, however, set out plans for public sector cuts in a bid to save money for the current financial year.
According to the Treasury, Ms Reeves “will announce immediate action to restore economic stability and deliver departmental savings this financial year”.
Ms Reeves is expected to say: “It is time to level with the public and tell them the truth.
“The previous government refused to take the difficult decisions. They covered up the true state of the public finances. And then they ran away. I will never do that.
“The British people voted for change and we will deliver that change. I will restore economic stability. I will never stand by and let this happen again.
“We will fix the foundations of our economy, so we can rebuild Britain and make every part of our country better off.”
The chancellor will announce an Office of Value for Money (OVM) – paid for from existing Civil Service budgets – to “put an end to wasteful spending”.
The OVM will make…
