A Labour government would follow Conservative tax and public spending policies until growth returns to the ailing economy.
Senior members of the shadow cabinet expect to have no more money for public services if the party wins the election next year.
In a move that will risk angering unions and the left, senior Labour figures are so concerned about the state of the economy that they have decided to prioritise fiscal credibility over increased spending.
Rachel Reeves, the shadow chancellor, has indicated to colleagues that, in an effort to attract floating, middle-class voters in marginal seats, a Labour government would not raise personal taxes while the cost of living crisis persisted. One shadow cabinet member said: “Rachel isn’t going to make any major tax pledges.”
