Chancellor Rachel Reeves will on Tuesday tell ministers they must join the fight against inflation, in a sign of her fears that rising prices in Britain could hit growth and worsen the cost of living crisis.
Reeves will tell colleagues at a cabinet meeting devoted to growth that they must scrap regulatory burdens on companies, resist public sector pay demands and back her fiscal rules, government officials said.
Her message comes against a backdrop of rising concern among some Labour MPs over what one called the “straitjacket” imposed on economic policymaking, with tensions expected to be exposed in a looming contest for the party’s deputy leadership.
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