Shadow chancellor, John McDonnell, will announce Labour’s new spending pledge during a speech in Liverpool on Thursday.
The latest plan constructed by the Labour government has pledged £150bn for the improvement of schools, hospitals and low-cost homes after promising that the party´s investment in infrastructure would get to £350bn in five years.
Labour has stated that they would deliver an “irreversible shift” of power and investment to working people outside the south-east of England if they win the election on December 12.
During his first major speech regarding the electoral campaign, McDonnell will promise “investment on a scale never seen before in this country and certainly never seen before in the north and outside of London and the south-east” and that “power is coming home, back to the people”.
Treasury staff will be moved out of London to guarantee that all regions in the UK get a fair share of the proposed funding, according to the Party´s shadow chancellor.
The new funding would be rolled out alongside a £250bn Green Transformation Fund that would be utilised to enforce environmentally friendly policies including home insulation, building offshore wind farms and the North´s new Crossrail.
The statement that Labour would look at increasing borrowing to a higher level than previously stated in 2017 caused a stir with Conservatives, who claimed that the move would pose a threat to the already fragile economy.
Chancellor Sajid Javid responded to the latest declarations by calling them “fantasy economics”. He also compared John McDonnell and Jeremy Corbyn to anti-vaccine conspiracy theorists, stating that they “reject the treatment needed to heal our economy”.
Chief secretary to the Treasury, Rishi Sunak, said: “Jeremy Corbyn’s tax rises and reckless spending would do irreversible damage to the economy. Their extreme plans would mean economic disaster for Britain – raising taxes to their highest level in peacetime history, hitting hard-working families up and down the country.”