The PM says his economic plan will take years to deliver, rejecting calls for quick fixes after the budget. He backs Reeves’ tax rises and outlines pro-growth reforms, including targeted deregulation and closer European links, urging voters to judge it at the end of the parliament.

The chancellor said higher taxes on the wealthy are needed to repair underfunded public services and sustain investment in schools, hospitals and infrastructure. She rejected calls for austerity after weaker growth forecasts and defended protecting capital spending to boost productivity.

Ministers have dropped the pledge of day-one protection from unfair dismissal, opting for a six-month threshold after negotiations with business and unions. The TUC accepted the compromise as the nine-month probation plan is scrapped, prompting concern over a manifesto breach.

Rachel Reeves unveiled a £26bn revenue plan, with tax rises aimed at wealthier households and a continued freeze on income tax thresholds. She scrapped the two-child benefit cap and promised help with energy bills, saying everyone must contribute while protecting those most in need.