Chancellor John Healey’s first budget has faced sharp criticism from economists for avoiding major tax or welfare reforms, leaving a £28 billion funding gap that could force deep public spending cuts. The Institute for Fiscal Studies warned the approach risks future austerity measures, while opposition figures accused the government of sidestepping tough financial choices. Analysts argue the budget’s cautious stance may delay difficult decisions but could heighten pressure on public services down the line. Critics question whether the government’s reluctance to address structural deficits will leave it vulnerable to economic shocks.
Experts round on chancellor over ‘scattergun’ budget, saying he ducked big tax and spending decisionsJohn Healey has backed away from cutting the cost of welfare this parliament, amid dire warnings his first budget could lead to brutal spending cuts because of a £28bn shortfall in public finances.Experts rounded on Healey’s steady-as-she-goes budget on Thursday, with the Institute for Fiscal Studies saying he had left himself a mountain to climb by ducking big tax and spending decisions. Continue reading...
