By Karim Hammam
The Resolution Foundation, an economic think tank formerly led by current pensions minister Torsten Bell, has dismissed Chancellor John Healey's Budget as "scattergun" and warned it fails to address Britain's sharp challenges.
Think Tank Warns of Rising Energy Bills
The think tank said the cost-of-living measures announced would not prevent energy bills from rising above levels seen during the Iran War and Middle East crisis. Average annual energy bills are projected to reach £1,750 in 2026-27, while typical disposable income could fall by £1,050 over the next two to three years.
Cost of Living Support Criticized as Poorly Targeted
Resolution Foundation chief executive Ruth Curtice said support was spread too thinly and would leave even assisted families facing higher bills than during the last energy price shock. She argued a more dramatic change of tactics may be needed.
£100 Energy Payment Deemed Badly Targeted
Interim chief economist Greg Thwaites criticized the £100 energy support for households in council tax bands A to D as "extremely badly targeted," noting it does not account for actual energy usage.
Former Think Tank Head Now Treasury Minister
The criticism is particularly embarrassing for Healey because Bell, who headed the think tank until 2024, appeared alongside the Chancellor at Downing Street for the traditional Budget photo. Bell played a key role in drafting the measures before becoming an MP.
Budget Watchdog Paints Grim Economic Picture
The Office of Budget Responsibility also warned that the UK's economic and fiscal position remains "very challenging" after nearly two decades of shocks and stagnation. Professor David Miles of the Budget Responsibility Committee said per-person real household disposable income has seen virtually no growth since before Covid, calling it a "pretty grim picture."
