A defiant Keir Starmer has said he will defend Labour’s controversial Budget “all day long” as he rejects growing calls to U-turn.
The prime minister will double down on his government’s plans, which have faced intense criticism, ahead of mass protests against the so-called ‘tractor tax’ next week.
Thousands of angry farmers are expected to descend on Westminster, furious at inheritance tax changes they say will destroy family farms.
A week-long strike, which organisers say will include “thousands” of farmers who will withhold meat and crops from supermarkets, will begin in Wales this weekend.
But in a speech in Wales on Saturday, Sir Keir will take on his critics to suggest the Budget is key to transforming the “lives and pockets of working people”. His phrasing will be seen as a clear sign that Labour wants to avoid a repeat of the Democrats’ loss to Donald Trump, which was blamed on inflation.
He will also confirm a £160million investment zone in Wrexham and Flintshire, while Labour will announce a new £13m fund to help Port Talbot steelworkers affected by blast furnaces closures to start their own businesses.
Charities, dentists, hospices and GPs have also called for changes to Budget, with its record £40bn of tax rises, while businesses have made clear that they are losing confidence in the chancellor Rachel Reeves.
But Sir Keir will suggest that in the future “we look back with pride on the tough decisions we took to get there.”
He said people had “already started” to urge him to “turn back”.. “you’ve made some tough decisions, it’s time to go more softly”.
But he added would “stick to our long-term plan”. And, in comments that will be seen as more controversial, he will add: “Make no mistake, I will defend our decisions in the Budget all day long”.
In extracts of his speech, which will be widely seen as reflecting the Presidential result in the US, the prime minister will argue that Labour’s plans for change on the scale of a “national renewal” must be felt “in the bones of a nation and in the lives and pockets of working people”.
The tough decisions were necessary because of the “mountain of mess” left by the last Conservative government, which ministers have blamed for a £22 bn black hole in the nation’s finances.
Sir Keir will add: “I will defend facing up to the harsh light of fiscal reality, defend tough decisions that were necessary to stablise our economy, and I will defend protecting the payslips of working people.
“Fixing the foundations of our economy, asking those with the broader shoulders to contribute more, so that we finally turn the page on the era of austerity – once and for all.”
The farming protest on Tuesday is expected to be led by farmers’ children on toy tractors “signifying the impact of the devastating budget on the future of farming and the countryside”.
Celebrities including Jeremy Clarkson and politicians are also expected to take part, with speeches outside Downing Street.
Ms Reeves has described her tax changes as “fair and proportionate” and has insisted that they will only affect around one in four farms.