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Philip Hammond has been accused of preparing a Budget “con trick” to hide the fact he is not ending austerity.

The Chancellor will be urged by Labour Shadow Chancellor John McDonnell to take “large scale action in this budget to end austerity, not present some vague promises for the future or a few financial conjuring tricks”.

Labour will also publish a dossier setting out the extent and impact of Tory cuts on people across the country.

In a speech to representatives of businesses, trade unions and charities, setting out Labour’s Budget demands, Mr McDonnell is expected to say: “In her party conference speech, Theresa May announced the end of austerity.

“This budget will demonstrate whether or not she is true to her word.

“First, there needs to be an acknowledgement of the scale of the hardship eight years of Tory austerity has inflicted on our people and our communities.

“Second, we need to see large scale action in this budget to end austerity, not some vague promises for the future or a few financial conjuring tricks. Our schools, councils and social care system are crying out for investment. If austerity is really over, it is time for Phillip Hammond to stump up the cash.”

(Image: Getty Images)

(Image: Getty Images)

His comments come after Theresa May used her annual Conservative Party conference speech in Birmingham to herald an end to the era of austerity which followed the 2008 global financial crash.

In a speech on Thursday, Mr McDonnell will say the Chancellor needs to begin his Budget statement with an acknowledgement that the policies pursued by the Tories since they came to power in 2010 had failed.

"The Tory strategy has created a low-wage, low-investment and low-productivity economy unfit to meet the two key challenges of our era, the need for a fourth industrial revolution and climate change," he will say.

He will warn that with a looming NHS winter crisis, a £2.5 billion "funding gap" in social care, and with benefit cuts leaving some families £200-a-month worse off, the Chancellor needs to take significant action to repair the damage.

"There needs to be an acknowledgement of the scale of the hardship eight years of Tory austerity has inflicted on our people and our communities," he will say.

(Image: Empics Entertainment)

"We need to see large-scale action in this Budget to end austerity, not some vague promises for the future or a few financial conjuring tricks.

"Our schools, councils and social care system are crying out for investment. If austerity is really over, it is time for Philip Hammond to stump up the cash."

For the Conservatives, Treasury Chief Secretary Liz Truss said: "Since the Labour Party wrecked our economy, we've got the deficit down while investing record amounts in public services and keeping taxes low.

"Labour's plans to spend £1,000 billion and make business the 'enemy' would crash the economy all over again, and just like last time working people would pay the price."

Separately, Jeremy Corbyn earlier accused Theresa May of “not being straight with the public” over her boast of ending austerity as he demanded extra police and nurses.

The Labour leader challenged the Prime Minister to guarantee that next week’s Budget will result in a boost for public service staffing numbers, as he highlighted concerns from “gloomy Tories in Derby” over council cuts and a warning from Tory-led Walsall Council about austerity being “alive and kicking”.