John McDonnell is to call on Philip Hammond to admit that his party's austerity measures have failed as the shadow chancellor sets out Labour's demands in a pre-Budget speech.
Referring to Theresa May's pledge earlier this month to end the era of austerity, the shadow chancellor will say that next week's fiscal statement will demonstrate whether or not the prime minister is “true to her word”.
At a speech in central London, Mr McDonnell, one of Jeremy Corbyn's closest allies in Westminster, will then demand an “acknowledgement” from the Treasury “of the scale of hardship eight years of Tory austerity has inflicted on our people and communities”.
He will urge his opposite number to use the Budget on Monday afternoon to take “large-scale action” and address the damage caused by austerity, rather than falling back on “vague promises” or “a few financial conjuring tricks”.
“Stopping and reversing some of the tax cuts to the rich and corporations would go some way in ending austerity,“ Mr McDonnell will say.
He will add: “The Tories have botched the Brexit negotiations and as a result are making matters even worse, putting jobs and the economy at risk. Vague promises of some Brexit bonus are increasingly seen as implausible .
“The Tories must admit their austerity strategy over the last eight years has failed.
“Deficit reduction has only been achieved by shifting the burden away from central government and onto the shoulders of head teachers, hospital managers and local councillors."
Simply saying "no further cuts" could cost around £26 billion, he said on BBC's Radio 4 Today programme, but added if "you want to stop the cuts and then start reversing them it will be more than that - we are calculating at least £30 billion, most probably up to £50 billion".
"We've got to have a debate next week, if the prime minister is promising the end of austerity, let's have an honest debate about that," he said.
But the Conservative's Treasury chief secretary Liz Truss said in response to Mr McDonnell's speech: “Since the Labour Party wrecked our economy, we've got the deficit down while investing record amounts in public services and keeping taxes low.
“Labour's plans to spend £1,000 billion and make business the 'enemy' would crash the economy all over again, and just like last time working people would pay the price.”
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