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.

The chancellor will present a budget to ease the cost of living and restore fiscal stability. It promises help for households, investment to lift growth and productivity, and disciplined borrowing to reassure markets, billed as a decisive reset for the government’s economic plan.