RACHEL Reeves will today warn of “difficult choices” — as she prepares the nation for sweeping tax raids.
She will vow to “fix the foundations of our economy” and accuse ex-PM Rishi Sunak of “covering up” the dire state of public finances.
The Chancellor will reveal the findings of a probe into Treasury coffers expected to show a £20billion black hole in the national purse.
And after naming a date for an Autumn Budget, Ms Reeves will pledge a fresh crackdown on public sector waste.
A new Office of Value for Money will target bloated quangos and pricey external consultants will also be cut.
Ms Reeves is also considering scrapping or delaying major infrastructure projects, including the £500million Restoring Your Railway Fund.
She is unlikely to commit to a £1.7billion tunnel under Stonehenge.
Mandarins are understood to be eyeing up a hike on inheritance and capital gains taxes this autumn to boost coffers.
PM Sir Keir Starmer has vowed VAT, income tax and national insurance will not go up in this parliament.
In the Commons, Ms Reeves will say: “Upon my arrival at the Treasury three weeks ago, it became clear that there were things I did not know. Things that the party opposite covered up from the country.”
But Shadow Treasury Minister Laura Trott said all information on the economy was “publicly available all along”.
She added: “Having promised 50 times not to raise taxes, the public will never forgive Labour when they inevitably do.”
Ms Reeves is also set to announce there will be one Budget a year — as proposed by the Tories in 2016 — compared with the current two.
