Reeves set for major clash with business over Budget

Rachel Reeves is set to splurge cash to tackle the rising cost of living, but is facing a major confrontation with businesses in her make-or-break Budget.

- DAVID MADDOX POLITICAL EDITOR

With the survival of Sir Keir Starmer’s government at stake, the chancellor looks set to appease backbenchers by introducing a range of measures to help Britain’s poorest - hinting she will pay for it by taxing the wealthy. Pledging to take “the fair and necessary choices” to help bring down the spiralling cost of living, she has also committed to cutting hospital waiting lists and bringing down the national debt.

It comes hours after Ms Reeves unveiled an inflation-busting hike to the minimum wage, which will mean a pay rise for millions of workers, with the chancellor promising that those on low incomes will be “properly rewarded” for their work. But businesses were quick to hit back, warning the move would drive unemployment and hit economic growth.

Ahead of her Budget speech today, Ms Reeves said: “I will take the fair and necessary choices to deliver on our promise of change. I will not return Britain to austerity, nor will I lose control of public spending with reckless borrowing. I will take action to help families with the cost of living ... cut hospital waiting lists ... cut the national debt. And I will push ahead with the biggest drive for growth in a generation.”