The Chancellor is risking a backlash by unveiling a £54 billion package of tax hikes and spending cuts.
Jeremy Hunt will insist to MPs his autumn statement puts the UK on a “balanced path to stability” as he tackles the “enemy” of inflation, which has soared to a 41-year high.
He will say the “difficult decisions” he has taken are necessary to keep mortgage rates low and to tackle rocketing energy and food prices which are intensifying the cost-of-living crisis.
But Tories on the right of the party are already voicing anger about the prospect of raising taxes, while energy bill support will be scaled back and public services face cuts.
The Chancellor will insist his strategy “protects our long-term economic growth” while being “compassionate” to the most vulnerable in society.
Mr Hunt is expected to deliver the autumn statement at about 11.30am, once Rishi Sunak has finished telling MPs about his visit to the G20 summit.
Labour MP for Rhondda, Chris Bryant, has tweeted: “In three months Tory MPs will have gone from cheering an “essential” £50billion tax cuts package to cheering an equally “essential” £60billion package of tax rises and spending cuts.
“No wonder voters don’t trust them. They couldn’t navigate a Tesco trolley down the veg aisle.”
He added: “Jeremy Hunt should start his budget statement with ‘sorry we crashed the economy.'”
Mr Hunt has been pictured leaving 11 Downing Street for the House of Commons, where he will deliver the autumn statement.
There is no red box, with the Chancellor instead carrying a green booklet bearing the words: “Autumn statement 2022.”
Making a statement to the Commons on his visit to the G20 summit, Prime Minister Rishi Sunak told the Commons: “In just a few moments the Chancellor will build on these international foundations when he sets out the autumn statement, putting our economy back on to a positive trajectory and restoring our fiscal sustainability.”
Harriett Baldwin, chairwoman of the Treasury select committee, said it was “really welcome” that the Chancellor’s autumn statement will come with an OBR forecast.
Ms Baldwin told Sky News that it would “help to reassure the markets that there is someone marking the Chancellor’s homework”.
The Conservative MP said Kwasi Kwarteng’s fiscal statement in September “clearly was a disastrous mini-budget” and that the autumn statement “would convince the financial markets that we’re back on track in terms of paying our way in the world”.
Ms Baldwin added that the committee wanted “to see something that will help work with the grain of what the Bank of England is trying to do to bring down inflation”.
She said inflation was “the worst economic problem in this country at the moment”, adding that the UK needed to get it “back in its box”.
In the Government’s promotional video for the autumn statement, Prime Minister Rishi Sunak said: “Today’s statement will help deliver the long-term stability this country needs.”
Chancellor Jeremy Hunt said it would create a “stronger, fairer United Kingdom”.
Business Secretary Grant Shapps said it would “support the most vulnerable with rising energy costs and asking energy companies to pay their fair share”.
Education Secretary Gillian Keegan said investment would focus on “skills and ensuring the British people have access to greater opportunities”.
Health Secretary Steve Barclay said it would “deliver on our promise of a stronger NHS and tackling the Covid backlogs”.
Home Secretary Suella Braverman said the Government would “make our streets safer, support our security services and control migration”.