After Sir Keir Starmer joked about the speed at which the Tory Party goes through leaders, suggesting that departing Rishi Sunak could come back, leadership frontrunner Kemi Badenoch mouthed “we’ll see about that”.

Rishi Sunak said he was proud to have been the first British-Asian prime minister, but is “even prouder that it was not that big a deal”.

The outgoing Tory leader went on to hail Britain’s “kindness, decency and tolerance”.

Rishi Sunak said that he will “now be spending more time in the greatest place on earth” in reference to his constituency as he prepares to stand down as Tory leader.

He added: “If anyone needs me I will be in Yorkshire.”

He prompted laughter in the Commons chamber as he asked the PM to meet to discuss the Yorkshire coast to coast trail.

Sir Keir Starmer thanked Rishi Sunak and wished him well as PMQs began.

He said: “I want to thank him for his hard work, for his commitment and for his decency in everything that he has done. I wish him and his family the very best for whatever the future may hold for them.”

Commons Speaker Sir Lindsay Hoyle also paid tribute to Mr Sunak before the session began.

Sir Lindsay said the House of Commons would look forward to his “continued contributions from the backbenches”.

Speaking of which, Mrs Badenoch – the favourite to replace Sunak – has just arrived in the Commons.

Rishi Sunak arrives in the Chamber for what will be his lasting outing at PMQs as Tory leader. He’ll be replaced by either Kemi Badenoch or Robert Jenrick on Saturday.

In the Commons, she will tell MPs: “My belief in Britain burns brighter than ever. And the prize on offer to today is immense.

“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.”

Prime Minister Sir Keir Starmer has said ahead of the Budget: “This is a huge day for Britain. After 14 years of decline, we will invest in our country – rebuilding our schools, hospitals and roads.

“We won’t shy away from the tough decisions to grow our economy and protect working people’s payslips. There is a brighter future ahead.”

Labour benches are already packed – a full 20 minutes before PMQs. A sign that it’s big day for the party as it’s Chancellor gets to deliver the first Labour Budget since the late Alistair Darling in March 2010.

Sir Keir Starmer leaves No10 Downing Street to head to the Commons for Prime Minister’s Questions.

This will be followed by the highly anticipated Budget.

Chancellor of the Exchequer Rachel Reeves leaves 11 Downing Street with her ministerial red box before delivering her Budget in the Commons.

She will become the UK’s first female chancellor to give a Budget statement.

Rachel Reeves has just left No 11 Downing Street to pose with the famous Budget Red Box for the first time.

Ms Reeves stood besdie her Treasury ministerial team as she held the box out for the waiting photographers.

The Chancellor will now make her way to the Houses of Parliament where she will attend Prime Minister’s Questions before delivering the Budget at 12.30pm.

Business people were most likely to be “concerned” or “apprehensive” ahead of the Budget, a poll shows.

The terms were the most popular used by 1,000 business leaders questioned by Savanta in the lead up to the Chancellor’s speech.

Former prime minister Liz Truss fears that “this is just the start of the pain” ahead of the Labour Government budget which is expected to see rising taxes in Britain.

She said: “It’s gonna be a very painful day!”

The ex-PM, who was kicked out of office after just 45 days over her own reckless spending plans, claimed the new government is going to introduce plenty of “pain” to Britons with its Budget.

Personal finance guru Martin Lewis told viewers of his ITV show how Pension Credit is “critically underclaimed” despite the benefit providing on average £3,900 towards a claimant’s income.

He also warned the eligibility for the DWP benefit is “very tight”, an important factor this year as you need to be on a means-tested benefit such as Pension Credit to qualify for the Winter Fuel Payment.

The Express’s personal finance editor Harvey Jones writes that he’s never known such an “agonising wait” for a Budget.

He said: “Like a trip to the dentist, I’ll be relieved to get it over with.”

It has been 117 days since Labour came into power. This is the longest wait for a Government’s inaugural budget in around 50 years.

The nation will get more clarity on Labour’s plans for pensions, inheritance tax, capital gains tax, income tax, national insurance, ISA allowances, bus fares and fuel duty.

The statement aims to lay out the nation’s finances and plans for taxation.

A swathe of tax rises and spending cuts are expected to be announced by Labour this week in the autumn Budget announcement.

Rachel Reeves will present her first Budget as Chancellor to the House of Commons on Wednesday, in which the government will attempt to fill a £22 billion “black hole” in the public finances.

Read the full story here

The UK’s first female chancellor, Rachel Reeves, will deliver the first Labour budget since Alistair Darling in 2010, promising to put “more pounds in people’s pockets”.

Promises not to increase income tax or national insurance on employees are likely to see companies hit with a greater share of the burden

Fiscal watchdog the Office for Budget Responsibility (OBR) will publish a report on the Conservatives’ legacy in government, which is expected to account for the so-called £22 billion “black hole” in the public finances.

Chancellor Rachel Reeves is set to confirm a £3bn spending boost at the despatch box.

But Ms Reeves will stop short of committing herself to a timeline for hitting the defence spending target of 2.5% of GDP.

Some of the extra cash is expected to be used to cover the £400million a year cost of giving soldiers a 6% pay rise backdated to April.

John Healey, the Defence Secretary, said earlier this month that Britain was not ready to fight a war because the military was so depleted.

But one person who will be very nervous is Shabana Mahmood.

The Ministry of Justice is one of the departments expecting big spending cuts…

Deputy Prime Minister Angela Rayner was snapped heading into Downing Street this morning, ahead of Chancellor Rachel Reeves addressing Cabinet.

Labour heavyweight Ed Miliband was also seen arriving.

They are expecting to hear key details of the Budget

The first order of the day for Rachel Reeves is to address Cabinet, briefing them on key details of the Budget.

Click the video below to see what is happening now in Downing Street.

Chris Philp, the shadow Commons leader, claimed Labour had “misled the British public” in order to win power.

He told Sky News: “During the election campaign, Keir Starmer and Rachel Reeves said that nothing in their plans required tax increases that went over and above what was in their manifesto and from all of the pre-briefing we have seen it now looks very likely, near certain, there are going to be enormous tax increases coming despite the fact they told the public in the election campaign that wouldn’t happen.

“So I think they lied to the British public, they misled the British public, in order to get elected and now we are seeing their true colours, now we are seeing what their plans really are.”

Labour has all but confirmed that employer National Insurance contributions will be hiked today.

A pre-Budget press release issued by Sir Keir Starmer‘s party overnight made a specific reference to not increasing employee National Insurance but makes no mention of employers.

It said that “working people won’t face higher taxes in their payslips in line with the manifesto commitment not to increase taxes on income tax, VAT or employee National Insurance”.

Usually the centrepiece of the week in Westminster, Prime Minister’s Questions will be the warm up act for the Budget Speech today.

And here is the list of MPs set to grill Sir Keir.

The Chancellor has faced widespread fury over a number of the expected policies in today’s Budget.

But last night, the Labour politician released this video in an attempt to justify her hated decision to axe winter fuel payments.

Rachel Reeves’ first Budget as Chancellor is widely expected to include up to £40 billion in punishing tax rises and swingeing spending cuts.

Here, the Daily Express looks at what we know and what we might expect.

Winter fuel payment cut: Rachel Reeves provoked a furious backlash after scrapping the universal benefit in July, meaning up to 10 million pensioners could miss out on the payment. Other benefits for the elderly, such as free bus passes and prescriptions, are expected to be safe.

Bus fares: Keir Starmer has said the £2 fare cap will be replaced by a £3 cap until the end of 2025 in a hammerblow to commuters. The deeply unpopular move is expected to drive up fares with travel routes across the country expected to suffer.

Taxes on working people: Labour claims it will stick to its manifesto promise not to raise the major taxes on “working people”: national insurance, income tax and VAT.

But….

National insurance employer contributions: The Chancellor is expected to hike employer contributions to national insurance by at least one percentage point.

Income tax: She is also expected to extend the freeze on income tax thresholds, which sees people pulled into paying higher rates through a process known as “fiscal drag”.

Inheritance tax: Ms Reeves is reportedly considering changes to inheritance tax, which could include extending the number of years someone has to stay alive after passing on wealth as a gift from seven to 10 years.

NHS: Billions of pounds are expected to be pumped into the health service, including £1.5 billion for new surgical hubs and scanners and £70 million for radiotherapy machines. An additional £1.8 billion has been allocated for elective appointments since July.

Private schools: In what is widely-regarded as an ideological move,the Government plans to remove the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.

Education and childcare: Some £1.4 billion has been announced already to rebuild crumbling schools, as well as a tripling of investment in free breakfast clubs, £1.8 billion for the expansion of Government-funded childcare, and £44 million to support kinship and foster carers.

Employment: £240 million will be given to local services to get people back to work as the Government seeks to cut the welfare bill.

Social housing: Right to buy discounts for tenants of local authority-owned homes will be reduced and a £500 million top-up in funding will go to the affordable homes programme.

Debt rule: Despite previous assurances she wouldn’t, the Chancellor has already confirmed she will change the way debt is measured to open the door for the Government to spend billions more on infrastructure, such as railways, roads, hospitals and new prisons.

Government departments: Ms Reeves is understood to have called on Government departments to make efficiency savings of 2% to free up billions to be reinvested in the front line.

Capital gains tax: Capital gains tax, paid on the proceeds from selling an asset, could go up. Changes could be applied to shares or other chargeable assets.

Fuel duty: The tax, which is included in the price motorists pay for petrol at the pump, could also be raised for the first time for more than a decade. The tax on motor fuels was frozen by the Tories between 2010 and 2022, and then cut by 5p to 52.95p per litre, where it remains.

Vaping: The Chancellor is reportedly considering increasing the tax on e-cigarettes, echoing her Conservative predecessor Jeremy Hunt’s plans to discourage non-smokers from taking up vaping. Vaping products are subject to VAT at 20% but, unlike tobacco, they are not also subject to excise duty.

Tax rises could lead to customers facing higher prices in pubs and restaurants, Chancellor Rachel Reeves has been warned.

Patrick Fitzsimmons, owner and landlord of the Faltering Fullback pub in north London warned that tax rises and higher energy bills could lead to hikes.

He told i: “We’re very lucky in that we’ve been busy and trade has been good, but the external factors like never ending inflation have been challenging.

“We hoped a Labour Government would back and help small businesses, given we’re the hub of many communities.

“Costs of producing beer have gone up, energy prices are bigger, if we get Nics increases and higher wages we can’t keep absorbing them, the costs will have to be passed on to customers. We know those customers have been hit for six, so of course we don’t want to do that.”

Alison Boutoille, Founder of CityStack, said increases to Nics would just “add more strain” to an already-squeezed industry.

“Independent pubs have faced countless challenges since the pandemic: reduced footfall, rising inflation, and a post-Brexit staff shortage exacerbated by soaring London rents, which has made it even harder for employees to find housing,” he said.

One of the main focuses of the fallout from today’s Budget will be the impact on business.

Reform UK MP Rupert Lowe warns “our ruling class is stuffed full of career politicians.”

The Chancellor insists the “Budget will deliver on the promise of change.”

It is 5,334 days since a Labour Chancellor stood in Downing Street with the famous red box. How will her day look? Ms Reeves will address Cabinet at 9am.

She will then appear in Downing Street at around 11am.

The Chancellor will then take her place next to Sir Keir Starmer at Prime Minister’s Questions, before standing up just after 12:30pm.

Business leaders are urging Rachel Reeves to take the “opportunity to boost confidence” amid fears tax rises could stiffle growth.

Firms have admitted they expect there to be no growth over the next three months, marking the second consecutive quarter when businesses have not expected any growth over the near-term.

Alpesh Paleja, an economist at the lobbying group CBI , said: “Our latest surveys paint a picture of an economy shifting down a gear as we head into the final quarter of 2024.

“Weaker growth expectations are weighing on firms’ hiring intentions, which have treaded water since the beginning of the summer.

“In the budget, the Chancellor has an opportunity to boost confidence despite the difficult fiscal picture.

“Business will want to see messages of hard choices balanced with interventions that deliver a vision of optimism.”

He added: “Giving firms certainty over future tax plans in the form of a business tax roadmap, measures to enhance productivity, and the country’s net zero trajectory can all help cement the path to long-term growth.”

Scotland’s First Minister John Swinney has said the Chancellor must “immediately and significantly” increase funding for Scotland in the Budget.

He said the Chancellor must use her fiscal headroom to deliver a Budget which “immediately and significantly” enhances Scotland’s resource and capital funding.

The Scottish Government has been candid about its dire financial situation in recent months, with Finance Secretary Shona Robison forced to make more than £500million of in-year cuts.

The Financial Times reports this morning that the UK’s long-term borrowing costs hit a post-election high on Tuesday as investors braced for Rachel Reeves’ first Budget.

It says investor anxiety over a rise in gilts issuance has added fuel to a sell-off in UK government bonds.

This pushed the 10-year yield up as high as 4.32 percent on Tuesday, which the publication says is its highest level since June, before Labour won the General Election.

The FT adds that as recently as mid-September, the yield was about 3.75 percent.

Small business owners have said they are “seriously concerned” by the prospect of tax rises in today’s Budget.

Chancellor Rachel Reeves is expected increase employer contributions to national insurance by at least one percentage point.

Steve Luke, 56, owns a paraplanning business in the financial services sector, employing nine people, including himself. He said he is “really anxious” ahead of the Budget.

The Newcastle-based businessman said: “I’m seriously concerned that if the Budget is as bad as I’m expecting then we may have to reduce the workforce from nine to seven or eight.”

Farmer and landlord Richard Payne, 61, said he felt “extremely nervous” because he is worried about taxation of his profits, inheritance tax and business property relief.

The farmer, based in Somerset, owns around 500 acres of land and rents an additional 150-200 acres to farm wheat, barley, oilseed rape and canola.

Mr Payne said: “It would look like SMEs are going to be clobbered hard.”

Mel Stride has urged Rachel Reeves to “do the right thing” and cancel her plan to means test the winter fuel allowance.

The Shadow Work and Pensions Secretary, writing in the Express, said: “The cruel decision to means test the winter fuel payment is a looming disaster for millions of pensioners up and down the country, who now face the prospect of choosing between eating or heating.

“Despite Labour finding billions for bumper bungs to their union paymasters, there is apparently no money left for freezing pensioners this winter.”

His comments came as a petition with 150,000 signatures was presented to Downing Street, calling for a U-turn.

Rachel Reeves is set to announce a £3billion increase in the defence budget for next year in her fiscal statement, part of which will be used to give soldiers a backdated pay rise.

The funding will also be used to buy weapons, with the aim of replenishing stockpiles depleted by donations to Ukraine, according to the Telegraph.

A pathway to increasing defence spending to 2.5% of national economic output demanded by the Tories will not be in the Budget.

Tory leadership contender Robert Jenrick said: “This Budget completes the biggest heist in modern political history. The Labour Party won power by lying to the British public about their plan to hike taxes.

“Working people are going to suffer and our economic recovery will take a huge hit. No wonder the public don’t trust politicians.”

His rival Kemi Badenoch accused Rachel Reeves of a financial “con trick” after she announced changes to debt rules that will allow her to borrow up to £50billion for investment.

Ms Badenoch said: “We don’t know the exact detail yet but we do know that it’s coming.

“Reeves is about to go on a spending binge with the nation’s credit card, throwing billions into an unreformed system which will take the money but not deliver the results.”

A shadow Treasury minister has warned Rachel Reeves is “likely to break promises made to the British people” in the Budget.

Baroness Vere of Norbiton accused the Chancellor of a “screeching U-turn” over changes to the Government’s fiscal rules.

The Labour Party’s manifesto laid out the Government’s fiscal rules as: day-to-day spending must be met by revenues and debt must be falling as a percentage of GDP by the fifth year of the forecast.

However, Ms Reeves has confirmed that she will change how debt is calculated, which will alter how much debt the UK officially has to “free up that money to invest”.

Lady Vere told the House of Lords on Tuesday: “Over the next 24 hours, the Chancellor is likely to break promises that she made to the British people in the run up to the election.

“And I am in no doubt that was always going to be the plan. “This is why the Treasury magicked up a fictional black hole, a black hole which rather incredulously contains spending decisions made by the current government.

“This fictional black hole will be invoked once again at the Budget statement tomorrow to act as a fig leaf to cover tax rises that will put more juice into the phrase ‘tax people until the pips squeak’.”

Rachel Reeves will pledge to put “more pounds in people’s pockets”, fix the NHS and grow the economy in Labour’s first Budget, despite warnings of tough decisions to come.

The Chancellor, the first woman to hold the role, will say there are “no short cuts” to driving the economic growth Labour has promised to deliver other than to invest.

In her speech, Ms Reeves is expected to say the “prize on offer” for Labour’s plans is “immense”, and will lay out new funding to cut hospital waiting lists, pave the way for more affordable homes and rebuild crumbling schools.