Healey warns of major departmental spending cuts and more 'hard decisions' after Reform's Jenrick brands his Budget a 'nothing burger'
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.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.
Chancellor John Healey acknowledged on Thursday that Cabinet ministers face further "hard decisions" and will be required to trim their capital budgets by 1% annually between 2027-28 and 2029-30, generating around £3 billion, as he defended a Budget that Reform dismissed as a "nothing burger" and the Tories called "not bold enough." The Institute for Fiscal Studies cautioned that the "raft of fiddly measures" was unlikely to provide any meaningful lift to growth. Kemi Badenoch called on Healey to resign over his refusal to commit to a firm timetable for hitting 3% of GDP on defence, saying: "He has failed his own test." Healey also insisted Labour is "doing a good job on migration" despite an OBR projection that net arrivals will rise to 230,000 a year by 2031 — double the current level.
Badenoch taunted: 'He's given himself a plan to have a plan — I bet Putin's really scared now.'
The OBR's projection of almost one million net arrivals across five years sits in direct tension with Healey's assertions of border control.
The Budget document also put football clubs and players on notice, announcing that image rights payments will henceforth be treated as employment income for tax purposes.
