IFS warns Britons to brace for a 'decade of pain' after Healey's Budget, with household incomes the worst on record
Prime Minister Andy Burnham speaking to ITV News, with NatWest chief executive Paul Thwaite among those criticising Chancellor John Healey for lacking ambition on growth.The freeze will also hand the Treasury an extra £71bn, with one in three London homes set to miss out on the Budget's £100 energy handout due to eligibility rules based on 1991 council tax bands.
The freeze on income tax thresholds — held since 2021-22 and now extended to 2030-31 by Chancellor John Healey — will drag nearly seven million more people into paying income tax, with a further six million pushed into higher rates, costing workers an extra £71bn by the end of the decade.
The IFS calculates the stealth raid will generate £71bn in extra Treasury income by 2030-31, with Tory spokesman Gareth Davies branding it a deliberate squeeze on working families.
Ex-miners were left 'deflated' after Healey scrapped the 50-50 surplus-sharing deal yet declined to hand back the £1.2bn sitting in the pension fund that campaigners argue belongs to scheme members.
The Chancellor's local pub owner cautioned that a pint could cost 25p more, while Lloyds finance chief William Chalmers called the bank surcharge hike 'unhelpful' to UK growth.
