PM will defend Labour plans in speech and insist working people need better public services more than lower taxes

Keir Starmer will promise to “embrace the harsh light of fiscal reality” on Monday as his chancellor prepares to unveil a budget that includes billions of pounds’ worth of tax rises and spending cuts.

The prime minister will give a speech in the West Midlands defending Labour’s approach to the economy, as Rachel Reeves prepares to announce what she promises will be as momentous a budget as any in the party’s history.