The Chancellor will warn that the UK must ‘maintain the credibility we have earned’.
Rachel Reeves will say Britain’s economy has “beaten the odds” under her stewardship, in a defence of her record ahead of Andy Burnham’s incoming government.
The Chancellor is expected to argue that the UK must “maintain the credibility we have earned”, signalling any new administration must keep the support of the markets in order to succeed.
Ms Reeves will tell an audience of business leaders the Government made “huge strides in delivering on the promise of change” in her third and likely last Mansion House speech as Chancellor.
“Because of the choices I have made, I’m proud to report that the British economy is strong,” the Chancellor will say.
“At the start of this year Britain had the fastest economic growth in the G7. Last year, borrowing fell from 5.2% to 4.3%, its lowest level in six years.
“Investment is up, productivity is up, and wages are up too.
“Waiting lists are falling faster than at any time in the last 17 years and half a million children will be lifted out of poverty by the end of this Parliament.”
The UK’s economy is expected to have been stagnant for another month as some industries come under pressure and the Iran war continues to hold back growth.
The Office for National Statistics (ONS) will publish May’s gross domestic product (GDP) figures on Thursday following a period of global turbulence during the conflict.
But Ms Reeves will say she has “always been an optimist about the future of our economy and our country, and I remain an optimist for what is to come”.
“This Government has made huge strides in delivering on the promise of change,” she is expected to say.
“Fixing the foundations, restoring economic stability, and proving our capacity to deliver radical change.
“That change is only possible if we maintain the credibility that we have earned, and the stability that we have built, with growth and opportunity in every town, city and region of the UK.”
She will back former Greater Manchester mayor Mr Burnham’s focus on devolution, arguing that an “active and strategic state” must step up by “empowering our regions, backing British business and deepening our relationship with the EU”.
“I have always been a firm believer that the success of our world-leading financial services sector is good for the whole of the UK,” Ms Reeves will say.
“Financial services remains the crown jewel in the UK economy and a shining example of our potential as a nation.
“Realising that potential entails choices.”
Ms Reeves appears to have conceded she will not stay on as Mr Burnham’s chancellor, though the presumptive next prime minister has not yet confirmed any Cabinet appointments.
The Makerfield MP is the only candidate in Labour’s leadership process and widely expected to officially take over from Sir Keir Starmer on Monday July 20 after the Prime Minister announced his resignation last month.
