Labour would prioritise lowering taxes for working people over giveaways for the rich, Shadow Chancellor Rachel Reeves indicated ahead of next week’s Autumn Statement.
It comes as Tory Chancellor Jeremy Hunt is said to be preparing to slash benefits to pay for cutting inheritance tax, paid on just the top 4% of estates.
And he’s rumoured to be considering a cut to the 40p higher rate of income tax, paid only by those on Britain’s top salaries.
“I’ve made no apologies for saying I want to lower taxes on working people,” Ms Reeves told this newspaper. “The tax burden is now at its highest level in 70 years. There’s been 25 tax rises in this Parliament alone. I want taxes on working people to be lower and that would be my priority if there was space for tax cuts.”
Labour today sets out more of its alternative economic plan, which Ms Reeves said would save working families up to £3,000 a year.
That includes £500 a year by insulating homes to make them more energy efficient and £900 by providing cheaper cleaner power through Great British Energy, Labour’s proposed state-owned energy generator.
A further £400 could be saved through a crackdown on unfair car insurance practices, with a huge £1,200 a year saved on mortgage bills by building 1.5 million new homes.
Mr Hunt is widely expected to use his big economic speech on Wednesday to set out “dividing lines” with Labour ahead of a General Election.
“For me the clearest dividing line, the questions that people are going to be asking this week ahead of the Autumn Statement, but also the general election are pretty straightforward,” Ms Reeves said. “Are me and my family better off after 13 years of Conservative government?”
She went on: "I think the answer is no. And because the answer to that question is no, it's clear that another five years of Conservative government is not the answer.
"Labour has changed, and the key is leadership. And we have a serious a credible plan to make working families better off, and that's what we're going to put on the table for voters at the next election."
Last week saw Rishi Sunak reshuffle his cabinet - bringing in failed former PM David Cameron as Foreign Secretary after ousting Suella Braverman as Home Secretary.
That move, combined with expected tax cut ‘bungs’ in Wednesday’s speech, have led some in Westminster to speculate that Mr Sunak could be gearing up for an early election.
“We say bring it on,” Ms Reeves said. “Every day they’re in office is another wasted opportunity to improve people’s living standards and get our schools and hospitals off their knees after 13 years of Conservative Government.
“If Rishi Sunak is going to get some courage and call an election we’re well up for that. And we’re ready for it.”
On Mr Sunak bringing David Cameron out of retirement, Ms Reeves joked: “I’m not sure what the question is if David Cameron is the answer.
“I don't think anybody that's worried about paying their mortgage or their rent, worried about the costs as Christmas approaches, worried about getting a doctor's appointment - I don't think any of them are going to think, 'Oh, well, I'm feeling a little bit more optimistic today. David Cameron is the Foreign Secretary."
And she responded to reports from last month that Mr Sunak was eyeing up Clare Coutinho as a potential replacement for Mr Hunt as Chancellor - which would deny Ms Reeves her ambition of becoming the first woman to hold the job.
Asked if it bothered her, she said: “"No, not at all. Everybody knows that I want to see more women in positions of power, particularly in the economy.
"I've just written a book about the women who shaped modern economics.
"So, look, Rishi Sunak could put whoever he wants in into the role. I just want a general election to give the country a choice between the seventh or the eighth Conservative Chancellor versus a labour Chancellor, who's going to focus on tackling the cost of living crisis and growing our economy, because those two things have been absent.”