Kemi Badenoch will warn John Healey's first Budget could do more damage than Rachel Reeves's two budgets did

Kemi Badenoch is set to address an audience in central London today, arguing that Labour's deficit plans rest on 'fictional cuts' pencilled in for the final year before an election. She will point to 30-year gilt yields topping 6% — a level not seen since 1998 — and observe that Britain's borrowing costs now exceed those of Greece or Spain by more than a percentage point. The Chancellor delivers his Budget on October 28.

She will claim Labour is 'taking out loans to pay the interest on our loans'.

The Institute for Fiscal Studies warns of a £35bn black hole in departmental budgets.

Badenoch will say the Tories have found more than £70bn in savings.