Keir Starmer is delivering a speech where he is expected to promise that a Labour government would not “turn on the spending taps” if it wins the next election.
The Labour leader will say that a government he leads would be “ruthless” when it comes to prudent public spending.
He will say his party must have an “obsession” with economic growth in order to raise living standards.
He will address a conference hosted by the Resolution Foundation think tank, which has a report out saying the UK has seen 15 years of relative decline, with productivity growth at half the rate seen across other advanced economies and flatlining wages costing the average worker £10,700 a year in lost pay growth.
The living standards of the lowest-income households in the UK are £4,300 lower than their French equivalents, the Resolution Foundation report said.