IFS warns Chancellor John Healey faces £28bn of cuts, tax hikes or borrowing because his 'risky' Budget dodges key decisions
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.OBR migration projections, as the Chancellor defended his government's record despite forecasts of nearly one million more arrivals than departures over the next five years.
IFS director Helen Miller accused Healey of relying on 'hope' to balance the books, warning his Budget left a £28bn black hole by 2030 — made up of £17bn in likely departmental top-ups driven by inflation and £11bn to reach the 3% GDP defence target. Miller said Healey has already burned through 25% of his three-year capital reserve and 40% of his day-to-day reserve, funds she said were "categorically not what the reserves are for." The Resolution Foundation separately warned that 13 government departments face spending cuts hitting a "post-austerity historic low" after 2029.
The IFS warned that Healey's fiscal headroom has been cut by more than £8bn to only £15bn, leaving Britain 'more exposed to future bad news.'
Banks are fighting back too: Lloyds CFO William Chalmers criticised Healey for linking a doubling of the bank surcharge to energy bill support, warning the levy risks choking off lending for growth.
A new 'green tax' on imported fuels could push up air fares and pump prices, with Airlines UK boss Tim Alderslade calling it 'another blow to airline passengers.'
