First Minister John Swinney will warn the Chancellor this week that the forthcoming Budget is a “make or break moment” for the economy.

In a blunt message to Rachel Reeves he will call for an end to austerity and a new economic model built around investment in public services to boost growth.

Mr Swinney will tell an audience of academics, think tanks, public and private sector representatives in Edinburgh on Monday that a sucession of economic shocks in recent years have created a “long, dark economic winter” and the country cannot wait for conditions to improve.

His comments come amid speculation that Ms Reeves will extend the freeze on income tax thresholds, ­dragging up to a million people into ­paying higher rates.

The freeze was introduced by the Conservatives and attacked by Labour as a “stealth tax” but the chancellor is ­now expected to prolong it for another two years.

The decision is expected to raise £7 billion, but will add to claims that ­Labour was disingenuous when it said during the election campaign that it would not raise taxes on working people.

Ms Reeves is arguing that in addition to spending cuts and tax rises to plug a £22 billion black hole in the nation’s finances she can raise billion so pounds from investors to support investment in infrastructure.

Mr Swinney insists that the Westminster model has “failed”, Mr Swinney and will say the country needs to embark on a new course that puts an end to continued public spending cuts.

“Successive economic shocks, and policy choices like austerity, have undermined the fabric of our public services – and they have directly impacted the wellbeing of people across the UK,” Mr Swinney will say.

“These past seven years in particular – with Brexit, Covid, war in Europe and the resulting energy crisis and inflation shock – have been incredibly difficult for everyone. They have felt like a long, dark economic winter.

“What is needed now is a collective commitment to public investment for economic renewal – investment that will allow us to move into an economic spring, with new growth, new opportunities and new hope.”

He says that in a period :”defined by global crises”, it is necessary to “invest boldly to improve living standards, increase equality, and protect the planet.”

Mr Swinney adds: “We cannot simply sit back and wait for economic conditions to improve after nearly two decades of volatility.

“I want to bring together a consensus in Scotland around the need for investment and use that goodwill to fuel the next stage in our economic journey.

“One thing is clear – we have reached a turning point: a pivotal moment for UK decision making in a world of sustained turmoil.

“That is why I believe the United Kingdom faces a make-or-break moment in this next Budget. It must be seized.”