He will say acting now to counter the slowdown is a better option than “ploughing on and hoping for the best”, according to the BBC.
Balls says the economy needs a jump start and a tax cut would boost consumer confidence.
However, the Conservatives said Balls had not established a credible alternative for tackling the deficit.
In his first major policy speech since becoming shadow chancellor, Mr Balls will also insist Labour are not to blame for the deficit.
Mr Balls says the government’s cuts programme risks a “vicious circle” of lower investment, income and employment. This could lead to slower growth, bigger tax increases and more spending cuts.
He says Chancellor George Osborne’s refusal to draw up a “Plan B” is because of a “political gamble” rather than for Britain’s economic interests.
