IFS warns Healey faces £28bn of cuts, tax rises or borrowing by 2030 after a Budget built on 'hope'
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 John Healey of relying on 'hope' to balance the books, warning he has already burned through 25% of his three-year capital reserve and 40% of his day-to-day reserve. The think tank calculates that inflation pressures alone could require £17bn in budget top-ups by 2030-31, with defence reaching 3% of GDP costing a further £11bn.
The Resolution Foundation warned that 13 government departments face cuts reaching a 'post-austerity historic low' after the Spending Review next year.
Healey compounded his Budget headaches by sparking a welfare row — telling Radio 4 there 'will be' a cut in the benefits bill before the next election, a claim the Treasury then rushed to distance itself from.
The Chancellor separately defied Burnham on Brexit, telling LBC 'we had a referendum, we're out' and refusing to accept growth would be stronger inside the EU or single market.
