Sir Keir Starmer has accused the government of ‘gambling the mortgages and finances’ of the British people with its ‘casino economy’.

Speaking ahead of his party’s conference in Liverpool, the Labor leader tweeted: “The Conservative casino economy plays on the mortgages and finances of every family in the country. Work will ensure growth for workers, which benefits all communities. My government will deliver a fairer and greener future.

Chancellor Kwasi Kwarteng has announced his tax aspirations in a £45billion tax cut package that will benefit the top 1% at the expense of struggling households.

Kwarteng also reduced stamp duties for homebuyers and brought forward a reduction in the basic rate of income tax, to 19p a pound, a year earlier, until April.

The announcement sent the pound plummeting to its lowest level against the dollar in 37 years.

Announcing his mini-budget on Friday, Kwarteng said economic policy should focus entirely on growth.

Kwasi Kwarteng offers sweeping cuts in latest mini-budget – video clips

But deputy Labor leader Angela Rayner said the next generation will be worse off after the government’s “trickle down” approach to the economy.

‘We’ve had 12 years of Tories and growth hasn’t increased, and people haven’t seen this economy grow the way we need it to,’ she told BBC Breakfast.

“We have already seen economic benefits. It does not work. We don’t think it will stimulate the economy, and I think it will make it worse for the next generation.

Labour’s deputy leader said her party’s growth plan would be different, adding: “We wouldn’t be picking around tax cuts at the moment, we don’t think that’s the way to go.”

Chart illustrating 2022-2023 personal tax cut gains by income group

“We would ask oil and gas companies to pay a little more when they have made billions of pounds in profits, instead of putting it all on the national debt. We don’t think that’s the right priority.

Rayner hinted that Labor would roll back the government’s income tax cut in a bid to spur sustainable growth and ease the cost of living crisis for those on the lowest wages.

“We said that reducing income tax was the wrong priority. We don’t think it’s a priority,” she told BBC Radio 4’s Today programme.

Chart of the British pound falling to its lowest level in 37 years against the US dollar

“We will introduce our tax proposals that will guarantee those with the lowest wages their cost of living will improve. We will have sustainable growth in the future. We are going to invest in highly qualified jobs and in renewable energies, so that we are self-sufficient for our energy needs. »

The Institute for Fiscal Studies said the only people to benefit from tax cuts in coming years would be those earning more than £150,000, while others would be worse off.

“Well, if you look directly at people’s incomes with these tax changes, the more money you have, the more you earn,” think tank director Paul Johnson told BBC Breakfast.

“Actually, because there was a big tax increase that the chancellor didn’t cancel, it’s the drop over time of when you start paying income tax, if you take that into account, in three or four years, the only people who benefit from it will be earning more than around £150,000 a year.

“If you have less than £150,000 a year, if you’re among the 99 per cent with less than £150,000, then you’ll always be worse off because of the tax changes coming in the next two or three years.

The government defended the Chancellor’s criticism of the mini-budget, insisting it was “not a gamble but a necessity”.

Chris Philp, the chief secretary, insisted that cutting taxes for top and bottom earners would spur growth. He told Times Radio: “We are going to do what is right. We will generate growth. And we’re not going to worry about the politics of envy, or its optics.

He added: “We cannot continue to have high taxes. We cannot accept lower growth than we would like because the people of this country want higher wages.

“They want better living standards, they want to see money invested in public services, they want to see investment, they want to see their children have a better future than them.”

The only way to achieve these aspirations was through a growth plan, he added.