By Fatma Younis
The Resolution Foundation has accused Chancellor John Healey of a "complete failure" to target energy bill support at households most in need, according to its analysis of the budget published the day after the statement. The thinktank said the poorest half of households will gain an average of £158 from cost-of-living support this year and next, only £14 more than the £144 received by the richest half.
Thinktank warns of return to austerity
The Resolution Foundation also warned that long-term public spending plans imply a return to austerity. If the 3% defence target is met and real health spending grows at 2.6%, funding for 13 "unprotected" departments would fall to 4.7% of GDP by 2031-32, close to a post-austerity historic low.
Incomes forecast to fall before next election
Median real annual disposable incomes for working-age households are projected to grow by just £600 over the parliament, but the thinktank said those gains are already behind us. Between 2026-27 and the end of the parliament in 2028-29, typical incomes are forecast to fall by £1,050, a 3% decline.
Healey pledges welfare cuts before election
In broadcast interviews recorded after the budget, Healey vowed to cut the welfare bill before the next election with a "tough" approach to young people. The chancellor's tax and spending measures were described as relatively minor compared with a normal budget, leaving opposition parties struggling to find major lines of attack.
Burnham rules out early election
Mayor of Greater Manchester Andy Burnham said yesterday he would not hold an election within the next 12 months, despite speculation that he might call one next spring before voters feel the full impact of falling incomes.
Day of budget scrutiny
The Institute for Fiscal Studies and the Resolution Foundation are both presenting their budget analyses today. Transport Secretary Heidi Alexander will take questions in the Commons at 9.30am, followed by a Downing Street lobby briefing at 11.30am and the resumption of the budget debate. Burnham is visiting a Rolls-Royce factory in the Midlands at lunchtime.
