Rachel Reeves will pledge to put “more pounds in people’s pockets” in her Budget today, as well as pledging to fix the NHS and grow the economy.

The Chancellor, the first woman to hold the role, has warned of tough decisions in the lead up to today’s Budget, saying there are “no short cuts” to driving economic growth.

In her speech, Ms Reeves is expected to say the “prize on offer” for Labour’s plans is “immense”, and will lay out new funding to cut hospital waiting lists, pave the way for more affordable homes and rebuild crumbling schools.

She has warned that the tax hikes and borrowing increases she is considering may not be enough to undo “14 years of damage” to the NHS, despite plans to pump billions of pounds into the health service.

A hike in the minimum wage to £12.21 an hour is among the measures included, and Labour has also promised not to increase the headline taxes on the pay cheques of “working people”: national insurance, VAT and income tax.

Alongside its Budget analysis, fiscal watchdog the Office for Budget Responsibility (OBR) will publish a report on the Conservatives’ legacy in government, which is expected to account for the so-called £22 billion “black hole” in the public finances.

Despite warnings from ministers that the Budget will include tough decisions on tax rises and spending cuts, Ms Reeves is expected to say: “My belief in Britain burns brighter than ever. And the prize on offer to today is immense.”

She will add: “More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.

“And the only way to drive economic growth is to invest, invest, invest. There are no short cuts. To deliver that investment we must restore economic stability.”

The Conservatives have continued to protest against the decision to limit the winter fuel allowance to all but the poorest pensioners.

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Shadow work and pensions secretary Mel Stride told the PA news agency that a petition calling on the Government to think again has “over a quarter of a million signatures”, adding “many” pensioners are going to “really, really struggle”.

Ms Reeves made the cut as part of a series of measures aimed at filling the reported £22 billion spending gap in the public finances.

Shadow chancellor Jeremy Hunt is contesting a report into the so-called black hole which is set to be released alongside the Budget.

On Tuesday morning while visiting a south London hospital, the Chancellor said the Budget would help to end “neglect” of the health service, amid plans to spend £1.5 billion on new surgical hubs and scanners and £70 million for radiotherapy machines.

But she warned that turning around public services would take time, saying: “I don’t think in one Budget you can undo 14 years of damage.”