Reeves vows to tackle cost of living crisis in decisive budget for Labour

Statement billed as key moment for Starmer's beleaguered government

- Pippa Crerar Kiran Stacey Jessica Elgot

Rachel Reeves will promise to tackle Britain's cost of living crisis and deliver fiscal stability today in a budget billed as a decisive moment for the fate of Keir Starmer's beleaguered government.

The chancellor will say she is taking the "fair and necessary choices" to shore up the economy and raise billions worth of taxes to offset lower than expected growth forecasts.

But with disquiet among Labour MPs over the government's handling of the run-up to the budget-including trade-offs as a result of the decision not to increase income tax rates - she is battling to keep her party onside.

The government has been buffeted by a series of damaging leaks and speculation, much of it prompted by ministers trying to lay the groundwork to avoid spooking the markets and plummeting further in the polls.

Reeves is expected to announce a rise in the minimum wage, bring in the first rail fares freeze for 30 years, cut green levies on energy bills and scrap the two-child benefit cap to improve living standards.

But after dropping plans for an income tax rise amid higher wage growth and destabilising speculation over Starmer's future, she has been forced to bring in an array of smaller, riskier tax rises to fill the £20bn gap, and to abandon costly options such as reversing the 5p cut in fuel duty.