The Chancellor will say that ending austerity requires “embracing the harsh light of fiscal reality” in Wednesday's Budget.
Speaking in the West Midlands later today, Keir Starmer will say “better days are ahead” if the country adopts a long-term plan to increase investment and rebuild public services. 
He is expected to say the following: “When governments fail to achieve economic stability, working people pay the price.
“They are tired of slowing growth, stagnant living standards and collapsing public services. They know austerity is not the answer. And they are tired of politicians letting debt spiral out of control. I've seen the chaos that ensues.”
The Prime Minister's speech is a further attempt by Chancellor Rachel Reeves to break the ground for Labour's first Budget in 14 years.
Mr Starmer added: “Politics is always a choice, and now is the time to choose a clear path, accept the harsh light of fiscal reality, and allow us to come together around a credible long-term plan.
“Now is the time for us to rush towards tough decisions, because ignoring them will lead us down a path to decline.”
Mr Reeves said this year the £22bn black hole left by the previous Conservative government needed to be filled, but doing so alone would be enough to “keep public services shut down”.
He is understood to be planning to find up to £40bn in levies and savings in the budget to avoid substantial cuts to departments.
The Chancellor has also drafted changes to debt rules that would allow the government to spend up to £50bn more on infrastructure projects, with details expected to be announced on Wednesday.
Labor has promised not to increase revenue from income tax, employee national insurance contributions, value added tax or corporation tax.
Last week, Goldman Sachs said in a note to clients that it expects the government to increase tax rates in four areas: capital gains and inheritance tax, the removal of the National Insurance exemption for employer pension contributions, and an extension of the freeze on personal income tax bases. He said that
The government said it would not raise taxes on working people.
But Mr Starmer came under fire last week when he suggested that people who earn income from assets, such as landlords, are not workers.
The prime minister said workers are defined as people who “go out and make a living and are paid, usually in the form of a monthly cheque”, but they don't have the ability to “write a cheque to get you through hardship”. said.
But Ben Beadle of the National Association of Residential Landlords said:
“According to official data, 30% of landlords are employed full-time and a further 10% work part-time.
“28% are self-employed in some way, while 35% are retired and likely to rely on rental income for their pensions.
“Instead of promoting misinformation, the government needs to focus on the key challenge in the rental market: the lack of rental housing to meet ever-increasing demand.”
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