Rachel Reeves is poised to boast that Labour’s economic plans are finally working – despite new polling showing most voters fear the cost of living crisis will never end.

The Chancellor will attempt to put a positive gloss on the economy’s performance on Tuesday as she delivers her annual ‘spring statement’ on the economy to mark the publication of an updated forecast from the Office for Budget Responsibility (OBR).

But she was warned she risks looking ‘blind’ to people’s problems if she declares victory on the cost of living – as a new survey by the More in Common think tank reveals most voters remain gloomy about their own economic prospects.

The study found that 58 per cent of voters fear the cost of living crisis may never end, while a further 23 per cent do not think it will end this year.

The poll also found that Labour is losing the support of voters most concerned about the costs of living. Overall, the party is holding on to 54 per cent of those who backed Labour in 2024. But the figure falls to just 38 per cent who fear the Chancellor will never get to grips with rising prices.

Ms Reeves will claim that Labour has delivered a ‘stronger and more secure economy;’ with both inflation and interest rates falling.

‘This government has the right economic plan for our country in a world in that has become yet more uncertain,’ she will say.

‘Stability in the public finances, investment in infrastructure and reform to our economy.

‘Building growth not on the contribution of a few people or a few parts of the country, but in every part of Britain with a state that doesn’t stand back, but steps up.’

But the new poll suggests most voters have yet to notice any significant improvement in the economy.

Just 19 per cent of voters believe inflation has fallen in recent months, compared with 51 per cent who think it is still rising.

Only 32 per cent of people know that interest rates have fallen since the election, while 30 per cent believe they have gone up.

By contrast, 67 per cent of people are aware that unemployment has risen since Labour came to power.

Almost half of those surveyed (46 per cent) said they were still going out less to save money, while a similar proportion said they shopped around for cheaper groceries and more than a third (36 per cent) said they turned down the heating because of concerns about bills.

Luke Tryl, of More in Common, said: ‘It won’t be enough for the Chancellor to simply reel off upbeat economic figures if people still aren’t feeling the impact in their day-to-day lives.

‘Everyday experiences of the cost of living crisis haven’t improved. In focus groups, the public continues to share stories of cutting back on meals out, switching off the heating and worrying about the weekly shop; a growing number fear the crisis may never end.

‘While the government may want to celebrate signs of economic improvement, it will need to take care not to appear blind to the fact that, for many, the economy feels as broken as ever.’

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