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Rachel Reeves has appealed for cohesion within Labour as she gets ready to present a Budget she says is crucial to the party's electoral chances.

Speaking to Labour's Parliamentary Party on Monday evening, the chancellor urged MPs to back the package in full if they want to take power at the next election.

The Budget, due on Wednesday after weeks of speculation, is expected to include measures to raise revenue and tighten spending in places. Reeves told colleagues the vast majority of her spending proposals would be popular, but warned MPs they could not pick out favoured elements while rejecting the tougher parts of the plan.

She set out three central aims for the package: easing the cost-of-living squeeze, reducing NHS waiting lists and lowering the burden of government debt.

Reactions were mixed after the meeting. One MP described Reeves as candid and resolute, while another said her appeal for unity sounded strained.

Over the past year some Labour MPs have grown more critical of Reeves, and she has already reversed several policies, including changes to the winter fuel payment.

There had been concern that the Budget might include higher income tax rates — a move that would have clashed with the party's manifesto — but ministers now appear to have stepped back from that option. The coming Budget will be a test of discipline for Labour, and Reeves has signalled she intends to remain in the chancellor's job to see the plan through.

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