Budget about investing in public services - Sunak

Chancellor Rishi Sunak has said "strong investment in public services" will be at the heart of his plans for rebuilding the economy when he sets out his Budget next week.

Speaking on BBC One's Andrew Marr Show, he said he would drive growth by spending on infrastructure, innovation and skills.

But he said he did not have a "magic wand" to make rising costs disappear.

Labour wants VAT on energy bills to be cut to zero help families.

Shadow chancellor Rachel Reeves, who was also speaking on the same show, said many households were facing a "tough winter", and were worried about putting food on the table and heating their homes because prices were going up "on everything".

Mr Sunak will set out his Budget on Wednesday, amid concern among some in his own party that rising energy prices, inflation and tax hikes are causing a cost of living crisis in the UK.

He said he had been forced to grapple with challenges over the last 18 months of the pandemic that he would not have chosen to have to deal with.

But he said ministers had taken action to protect jobs and it was time to look to the future and reshape the economy.

And he said public sector workers would find out on Wednesday if they were getting a pay rise.