Chancellor Rachel Reeves tells the BBC she would not want to repeat the £40bn tax rise Budget and she wants faster growth than has been forecast by the Office for Budget Responsibility (OBR)
Employers will bear the brunt of the £40bn in tax rises unveiled earlier by Reeves - the biggest increase in a generation
The OBR, which assesses the health of the UK's economy, said the package of economic measures unveiled by Reeves would ultimately "leave GDP largely unchanged in five years" - read the key announcements here
Analysis: This is what you might call a kitchen-sink Budget, which includes one of the biggest single tax-raising measures in history, writes economics editor Faisal Islam
On spending, Reeves announces a £22.6bn increase in the "day-to-day health budget" for the NHS and £5bn in house building investment
Reacting to the Budget, Tory leader Rishi Sunak calls it "an enormous borrowing spree" which contains "broken promise after broken promise"
Chancellor says Budget will raise taxes by £40bn
Reeves says that the previous government failed to budget to compensate victims of the Post Office or the infected blood scandals.
She says her government will provide £11.8bn for victims of the infected blood scandal, and £1.8bn to compensate victims of the Post Office scandal.
This Budget will raise taxes by £40bn, Reeves tells the Commons.
Any chancellor would "face the same reality," she says, and any “responsible chancellor would take action.”
Reeves says Britain inherited broken public finances and broken public services.
She says the British people can see it in long NHS waiting lists, children sitting in crumbling schools, rivers filled with polluted waste, criminals not being punished and crimes not being investigated.
"This is the country's inheritance from the party opposite," she says, adding their plans relied on a baseline for spending this year which "we now know was wrong", because she says it did not take into account the so-called £22bn "black hole".
Reeves says the Office for Budget Responsibility (OBR) has published its own review into the Spring Budget forecast.
The OBR says the previous government did not provide them with "all the information" and if they had known their Spring Budget forecast for spending would have been "materially different", Reeves says.
She says that means any comparison between today's forecast and the spring forecast would be "false" as the Tories "hid the reality".
She calls this the "height of irresponsibility" and that they called an election to "avoid making difficult choices".
Reeves promises the British people that they wont let a government play "fast and loose" with finances and they won't hide the truth of the finances.
She confirms they will implement the 10 recommendations from the OBR's review.
Henry Zeffman
Chief political correspondent
Rachel Reeves opens with a condemnation of the Conservative Party, who she says “failed” Britain.
It’s striking that she did not confine her criticism to just the governments of recent years, but instead laid the blame at the full 14 years.
First, she said, “their austerity broke our NHS” – that’s an attack on the Cameron government of 2010-2016.
Then, she said, “their Brexit” damaged British businesses – that’s May and Johnson, 2016-2022.
And finally she attacked Liz Truss’s mini-Budget.
The chancellor wants to remind those taxpayers who may be about to encounter some difficult news that, as far as she is concerned, that is because of the Conservative record.
Image source, UK ParliamentReeves again points to the so-called “£22bn black hole” in the UK’s finances. She adds that the Treasury reserves were spent three times over three months into the last financial year.
The government will publish a line-by-line breakdown of the £22bn that will include hundreds of unfunded pledges, she says.
The Conservatives failed our country, the chancellor says.
Reeves says austerity broke the NHS and that the Tories' Brexit deal harmed businesses.
She also hits out at Liz Truss's mini-budget, to jeers in the chamber.
"The British people have inherited their failure, a black hole in the public finances, public services on their knees, a decade of low growth and the worst parliament on record for living standards".
The only way to drive economic growth is to "invest, invest, invest," Reeves says.
She says economic stability must be restored and the page turned on the last 14 years.
Cheers and jeers rumble through the chamber as she says that it is not the first time it has fallen to the Labour Party to rebuild Britain, listing 1945, 1964 and 1997 to illustrate her point.
Reeves then mentions that it is the first Budget "in our country's history to be delivered by a woman" and that she is "deeply proud to be the first female chancellor".
Rachel Reeves opens Budget as UK's first female chancellor
Cheers fill the room as Chancellor Rachel Reeves gets to her feet.
She starts by saying the country voted for "change" on 4 July at the general election.
She says the Labour government can "fix the foundations".
Change must be felt, she says, with more "pounds in people's pockets, an NHS that is there when you need it, an economy that is growing".
Emily Atkinson
Live page editor
Prime Minister's Questions has just ended, which means it's time for Rachel Reeves to deliver her Budget.
The chancellor will speak for around an hour. The Leader of the Opposition, Rishi Sunak, will then respond to the measures in one of his last major outings as Conservative Party leader.
We'll be covering it all with live updates and expert analysis on this page - follow along by tapping the watch live button above.
Faisal Islam
Economics editor
I'm hearing the Office for Budget Responsibility (OBR) report does conclude it would have forecast higher spending at the last Budget if it had received all the details on pressures from previous government.
This will be seized upon by the chancellor, but a crucial question is the extent - would this have led to a breach of the then fiscal rules? Perhaps not.
It seems unlikely the OBR itself will point a finger of blame here, but expect to hear a lot of this in the speech.
Henry Zeffman
Chief political correspondent
Today will be a day of intense politics but that was a striking moment of bipartisan warmth from Sir Keir Starmer towards Rishi Sunak, and in return.
Sunak will be replaced as Conservative leader by either Kemi Badenoch or Robert Jenrick on Saturday, but today will be his last significant duties in the role.
Note, he won’t just be doing PMQs today — by convention the leader of the opposition rather than the shadow chancellor delivers the main response to the Budget too.
That will suit Sunak well as a former chancellor as well as an ex-PM.
Sunak is adamant that despite some speculation he will remain an MP. But this is the end of his career in frontline politics, which saw a stunningly fast rise from junior minister in 2018 to chancellor in 2020 to prime minister in 2022.
Image source, PA MediaFor his final question, Sunak turns to the festival of Diwali.
He says he is proud to have been the first British-Asian prime minister, but is "even prouder that it was not that big a deal".
He says that speaks volumes about this country, and asks whether the prime minister would join him in applauding the "kindness, decency and tolerance that has always been the British way".
"Yes," replies Starmer, and reiterates that everyone in the House was proud of Sunak as prime minister.
He jokes about how quickly the Conservative Party goes through party leaders, saying Sunak "may be back here before too long".
Sunak now mentions threats to UK from what he calls an axis of authoritarian states.
He says he is proud of how the House of Commons has stood up to Russia in Ukraine, and says he will always be grateful for Starmer's support on the issue.
He now asks Starmer to ensure that Nato remains the bedrock of western security and that the UK will continue to play a leading role in it.
Starmer says Nato is as important today as when it was created and that the UK would always support it.
Sunak now asks about Northern Ireland, which he says needs "particular care".
He references the parliament there, restored earlier in this year, and asks if Starmer can give his assurances that he will keep Stormont open and running.
Starmer says this is an "important point", and says he worked there for five years and had a "huge impact" on him.
He says he agrees the government needs to be "up and running" and will give "all the support" he can.
Image source, PA MediaSunak now turns to cricket, saying the sport has the power "to bring people together from all communities".
He asks the PM whether he will continue support a new initiative to get cricket into more state schools across the country.
"Yes is the answer to that question," Starmer replies. He says it is really important for children to participate in different sports because it gives them "a confidence that they might not otherwise have".
Sunak asks the prime minister if he would “find his inner tech bro” and continue to support emerging tech businesses in the UK.
Starmer responds by saying that his government has brought together AI leaders and that tech will have “huge potential” for the country’s growth.
Starmer jokes that he thought Sunak would ask him to join him on his walks in Yorkshire.
He adds that the coast to coast trail is indeed an important issue and that he will meet with him.
Image source, UK ParliamentUp now is Rishi Sunak, former prime minister and current leader of the Conservative party.
He says he will be spending more time in the "greatest place on Earth" - Yorkshire.
He asks Starmer to meet to discuss the Yorkshire coast to coast trail.
The whole room laughs.
Starmer thanks Sunak for hard work, commitment and decency
The Speaker also mentions that this is the last time former prime minister Rishi Sunak will appear at PMQs, as a new Conservative Party leader is due to be selected on 2 November.
Now, Prime Minister Keir Starmer kicks things off by thanking Sunak "for his service" to the country, and wishes his family well for the future.