Chancellor Healey vows to cut the welfare bill before the next election as disability benefits head for £100bn a year
John Healey's Budget scraps standing charges on gas bills and extends the VAT holiday on electricity to July, though the gas change will not take effect before 2027.John Healey's Budget hands HMRC sweeping new powers to deduct overdue tax directly from bank accounts without taxpayer agreement.
Chancellor John Healey on Thursday pledged a 'tough' stance toward young people who turn down job offers, committing to bring down the welfare bill before the next election after declining to make 'crude cuts' in Wednesday's Budget. The fiscal watchdog cautioned that disability benefits alone are on course to reach £100bn annually by the decade's end, with welfare spending projected to climb steadily as a share of GDP. Healey also conceded that Brexit has 'certainly hit' UK growth, while maintaining that the economy has been 'remarkably resilient'.
The OBR's Budget forecasts present a gloomy outlook: real wages are expected to decline next year, housebuilding goals will fall short, and the adult population is forecast to begin shrinking from 2029.
