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Chancellor Rachel Reeves will promise to “invest, invest, invest” in Labour’s first budget for 15 years.

Ms Reeves – who is set to stand up in the Commons just after 12.30pm on Wednesday – will also give a pledge that “working people won’t face higher taxes in their payslips”.

However, she will clarify that Labour’s manifesto promise to keep national insurance unchanged only applies to employee contributions – paving the way for an increase in tax for employers.

Warning of ‘biggest tax-raising budget in history’ – latest updates

Income tax and VAT look to set to remain the same, with the chancellor saying there will be “more pounds in people’s pockets”.

“My belief in Britain burns brighter than ever. And the prize on offer to today is immense,” Ms Reeves is set to say.

But by pledging only to ring fence payslips, Ms Reeves leaves the door open for increases on inheritance tax, stamp duty, capital gains tax, fuel duty, tobacco duty, alcohol duty and many other rates.

More on Budget 2024

She is also set to change the fiscal rules – the way in which the government borrows and pays back money – in order to allow for greater investment.

Ms Reeves will say the priorities of the government will be to fix the NHS, rebuild Britain and protect working people’s payslips.

The chancellor is expected to say: “More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.

“And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts. To deliver that investment, we must restore economic stability.”

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What to expect from the budget

Read more on the budget:
New funding promised for two million more NHS appointments
£2 bus fare to increase in 2025
What’s likely to be in the budget?

Since winning the election, Labour has repeatedly said it was left in a poor financial situation by the Conservatives.

This included publicising what they argue is a £22bn “black hole” in the public finances.

Sky News was previously told that Ms Reeves will be looking to find £40bn in the budget – although it is not clear over what time period that may be.

Jeremy Hunt, who was the Conservative chancellor before the general election, has rejected the figure.

The Tories have been pointing to the pay rises given to various sectors like doctors, nurses and train drivers by Labour as reasons for the poor financial situation.

The chancellor will say Labour is going to channel the 1945, 1964 and 1997 governments in how they plan to revitalise the UK.

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Ms Reeves is set to tell the Commons: “This is not the first time that it has fallen to the Labour Party to rebuild Britain.

“In 1945, it was the Labour Party that rebuilt our country out of the rubble of the Second World War.

“In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology.

“And in 1997, it was the Labour Party that rebuilt our schools and hospitals.

“Today, it falls to this Labour Party, this Labour government, to rebuild Britain once again.”

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Who is Shabana Mahmood – Britain’s first ever Muslim woman to become home secretary?

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Who is Shabana Mahmood - Britain's first ever Muslim woman to become home secretary?

Shabana Mahmood has become the first ever Muslim woman in British history to serve as home secretary.

After just over a year as justice secretary, which saw her decide to release some prisoners early to free up jail spaces, she will now be in charge of policing, immigration, and the security services.

The 44-year-old replaced Yvette Cooper, 10 years after she helped run Cooper’s failed Labour leadership campaign, and faces flag-waving anti-immigration protesters and the growing threat of Nigel Farage’s Reform UK.

Raised in Birmingham and Saudi Arabia

Shabana Mahmood was born in Birmingham to parents from the Pakistani-administered region of Azad Kashmir.

Soon after they were born, they moved her and her twin brother to the Saudi Arabian city of Taif, where her father worked as a civil engineer and the family would make regular visits to religious sites in Mecca and Medina.

After seven years, they moved back to Birmingham and her father, still employed as a full-time engineer, bought a corner shop and became chairman of the local Labour Party.

She attended an all-girls grammar school and then Oxford University to study law at Lincoln College, where she was elected Junior Common Room president, with a vote from former Prime Minister Rishi Sunak, who was in the year above her.

After university, she moved to London to train as a lawyer, specialising in professional indemnity for most of her 20s.

On a visit to Solihull Mosque, West Midlands, in August 2024. Pic: PA
Image:
On a visit to Solihull Mosque, West Midlands, in August 2024. Pic: PA

‘My faith is the centre point of my life’

At the age of 29 in 2010, she was elected MP for her home constituency of Birmingham Ladywood, a safe Labour seat, with a majority of just over 9%, which grew to 82.7% at its peak in the snap election of 2017.

Along with Rushanara Ali and Yasmin Qureshi, this made her one of Britain’s first female Muslim MPs.

In an interview with The Times, she said: “My faith is the centre point of my life and it drives me to public service, it drives me in the way that I live my life and I see my life.”

She held several shadow cabinet positions under Ed Miliband’s leadership, including shadow prisons and higher education minister, and shadow financial secretary to the treasury.

Being sworn in as justice secretary in July 2024. Pic: PA
Image:
Being sworn in as justice secretary in July 2024. Pic: PA

Read more from Sky News
What a moment for Shabana Mahmood to take the helm
Cabinet reshuffle – who’s in and who’s out?

Often described as ‘blue Labour’, Mahmood returned to the backbenches when Jeremy Corbyn took over as party leader in 2015, telling him as she refused a shadow cabinet position: “I’ll be miserable and I’ll make you miserable as well.”

She had chaired her now-predecessor Yvette Cooper’s failed campaign to beat him to the leadership.

During the Corbyn years, she was elected to the Parliamentary Labour Party’s National Executive Committee and as vice chairman of the party’s National Policy Forum.

When Mr Corbyn was replaced by Sir Keir Starmer, Ms Mahmood became national campaign coordinator and was tasked with preparing Labour for the next general election.

During her two-and-a-half years in that job, she is credited with helping Labour win the Batley and Spen by-election and helping Sir Keir recover from Labour’s defeat in Hartlepool – where the Conservatives won for the first time ever in 2021.

On a visit to HMP Bedford in July 2024. Pic: PA
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On a visit to HMP Bedford in July 2024. Pic: PA

At the opening of HMP Millsike in March. Pic: PA
Image:
At the opening of HMP Millsike in March. Pic: PA

Early prison release scheme and views on Gaza

Soon after becoming justice secretary and lord chancellor, Mahmood commissioned a report into the crumbling prison estate.

Carried out by one of her Conservative predecessors, David Gauke, it revealed they were practically full, and triggered a controversial decision to release more than 1,000 inmates early to ease pressure on the system.

The Ministry of Justice were forced to apologise after it emerged 37 prisoners had been released by mistake.

Holding a taser at an event to launch a taser trial in a male prison in Oxfordshire in July. Pic: PA
Image:
Holding a taser at an event to launch a taser trial in a male prison in Oxfordshire in July. Pic: PA

She has also endorsed tougher immigration laws, announcing in August that foreign criminals will be deported after sentencing, and has been critical of their use of human rights lawyers, calling for reform of the European Convention on Human Rights as a result.

Answering questions on Asian grooming gangs, she previously told former Tory minister Michael Gove in The Spectator that there is “still a moment of reckoning” and an “outstanding question of why so many looked the other way”.

Shabana Mahmood shakes hands with US Homeland Security Secretary Kristi Noem on 8 September. Pic Reuters
Image:
Shabana Mahmood shakes hands with US Homeland Security Secretary Kristi Noem on 8 September. Pic Reuters

She has also been vocal on Labour’s stance on Gaza, warning the prime minister that “British Muslims are feeling a very strong sense of pain” and that the government would have to rebuild their trust.

When she was last re-elected in 2024, she suffered a 42% drop in her majority, facing off an independent candidate whose campaign centred around Palestinian rights.

Like her parliamentary neighbour, Labour MP Jess Phillips, she said the election campaign had been “sullied by harassment and intimidation”.

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HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

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HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

HSBC, ICBC eye Hong Kong stablecoin licenses under new regime: Report

HSBC and ICBC reportedly plan to apply for Hong Kong stablecoin licenses, with ICBC and Standard Chartered expected to secure first-round approvals.

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Backpack EU begins operations with CySEC-approved derivatives platform

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Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU, owner of the former FTX EU, launches a regulated perpetual futures platform in Europe after settling with the Cyprus regulator and securing a MiFID II license.

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