VOTERS will punish Labour if it puts balancing the books ahead of fixing public services in its forthcoming Budget, new polling revealed today.

Ministers were warned that they must be “change-makers and not just bookkeepers” as pressure mounted on the government to invest for growth.

According to a YouGov survey, the government’s approval rating would drop by a whopping 28 percentage points among those who switched party to vote for Labour in the July general election if the party managed to reduce debt and deficits but left NHS waiting lists unchanged.

Labour would, however, gain 31 points among the same group of switchers if waiting lists were halved, even at the expense of debt or taxes rising.

The survey was commissioned by the Institute for Public Policy Research (IPPR) and not-for-profit research group Persuasion UK.

IPPR interim executive director Harry Quilter-Pinner said: “Voters support the higher investment needed in infrastructure and public services to fix broken Britain, even if this means higher borrowing and taxes.”

Persuasion UK director Steve Akehurst said: “The public wants to see tangible improvements in essential services.

“Key parts of Labour’s coalition do not necessarily like the idea of higher borrowing or tax, but they seem willing to forgive it as the price of improved services.” 

The findings also support calls for government to equalise capital gains tax with income tax and for it to change its messaging to one of “rebuilding the nation and fixing public services.”

A Momentum spokeswoman said: “Labour has seen a significant drop in vote share in every council by-election since the general election.

“Without delivering real change in next week’s autumn Budget, the Labour government risks losing more support.”

And Public and Commercial Services Union general secretary Fran Heathcote said: “People voted for Labour to fix our public services after years of underfunding.

“Rachel Reeves promised ‘no return to austerity’ and people expect her to deliver on that pledge.

“Good public services contribute to strong economic growth and a failure to invest will result in more misery for working-class people and electoral misery for Labour if they break their promises.”

The Treasury said: “The government has been honest about the scale of the challenge we have inherited from the previous administration, including a £22 billion black hole in the public finances.

“The Budget will be built on the rock of economic stability, including robust fiscal rules that were set out in the manifesto. This includes moving the current budget into balance, so that day-to-day costs are met by revenues, and debt falling as a share of the economy by the fifth year.”

“We do not comment on speculation around tax changes outside of fiscal events.”