Labour accused of imposing '1970s style socialism' as Starmer tells Britons they face a ‘harsh reality’

Atkins said: "This is socialism that we've seen in the 1970s. This Labour government came into power promising they weren't going to raise taxes."

She expressed concern over Labour's definition of 'working people' and warned that their policies would affect everyone, including pensioners and those with assets.

Atkins also criticised Labour's approach to the NHS, stating they've had "14 years to work out what they want to do" but have only produced "rhetoric" so far.

Labour's upcoming Budget is expected to include significant tax changes, according to recent reports. The Chancellor is planning to cut the earnings threshold at which employers pay national insurance and increase the rate of contributions.

Capital gains tax, inheritance tax and fuel duty are also likely targets for increases.

Former Bank of England governor Mervyn King criticised Labour's tax plans, calling them a "terrible illusion". He warned that most people will face higher taxes, regardless of how the government defines "working people".

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King also cautioned that changes to debt rules could potentially push up mortgage rates in the long term.

City analysts have reportedly expressed concerns about Labour's economic plans. Some warn that the markets might "beat up" on the UK as the weakest link among advanced economies.

This follows a rise in borrowing costs last week. One analyst cautioned that Shadow Chancellor Rachel Reeves "is playing with fire, because if they want to bet against the UK, she is in big trouble".

Meanwhile, the government faced embarrassment over a "total cock-up with the comms" regarding an announcement about freeports. Downing Street had to backtrack on plans to announce five new freeports in the Budget.

Prime Minister Keir Starmer is set to defend Labour's economic strategy in a speech today. He will urge Britons to face up to a "harsh reality" ahead of the Budget.

Starmer will insist that the government's first Budget will "fix the foundations" and reject austerity. He is expected to say: "We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees."

The Prime Minister will argue it is time to run "towards the tough decisions" and ignore the "populist chorus of easy answers".