British families face the worst decade EVER for household income growth after Healey's Budget, IFS warns
Sophy Ridge questions Andy Burnham on screen, as the OBR projects net migration rising from 120,000 this year to 230,000 annually by mid-2031.The IFS warns John Healey has burned through 40 per cent of his day-to-day reserve, leaving a £28bn gap to close through cuts, tax hikes or borrowing by 2030.
Chancellor John Healey sparked a Cabinet row after telling Radio 4's Today programme "there will be a reduction in the benefits bill" before the next election — only for the Treasury to immediately dispute that interpretation, with Downing Street refusing to set "an arbitrary target or timetable." The welfare bill is forecast to surge from £333.8bn this year to £431bn by 2031, and the IFS warned Healey's budget left a £28bn hole that could force "brutal" departmental cuts.
The IFS's Helen Miller said Healey had "ducked big tax and spending decisions," leaving departments facing real-term budget cuts in a forthcoming spending review.
Lloyds Banking Group chief financial officer William Chalmers warned that doubling the bank corporation tax surcharge to six per cent will push up mortgage and loan costs for ordinary households.
Paul Bowen, a former Apprentice star and pie shop owner from Chorley who backed Burnham, demanded to know 'Where's my breathing space?' after being excluded from business rates relief and hit by the minimum wage rise.
