Brief
IFS warns Healey must raise taxes or cut £35bn in benefits
The IFS says the upcoming UK budget must address a £35bn gap, warning that a “steady‑as‑she‑goes” plan is unviable.
By Felo News Desk · Published
The Institute for Fiscal Studies told Chancellor John Healey that he must either raise taxes or cut benefits by roughly £35bn in the upcoming budget, or risk severe cuts to public services, according to the Independent.
The think‑tank said high inflation, partly driven by the Middle East conflict, is eroding departmental budgets, making a "steady‑as‑she‑goes" budget unrealistic. IFS director Helen Miller warned that setting unachievable spending limits would turn the budget into a "work of fiction".
In response, shadow chancellor Andrew Griffith urged the government to cut welfare rather than raise taxes, while Green Party leader Zack Polanski called for immediate action on energy bills and home insulation.
Key facts
- The IFS says Healey must raise taxes or cut benefits by about £35bn to avoid deep public‑service cuts. (independent.co.uk)
- High inflation linked to the Middle East conflict is eroding departmental budgets. (independent.co.uk)
- IFS director Helen Miller warned a "steady‑as‑she‑goes" budget would become a "work of fiction". (independent.co.uk)
- Shadow chancellor Andrew Griffith suggested welfare cuts over tax rises. (independent.co.uk)
- Green Party leader Zack Polanski called for action on energy bills and home insulation. (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Healey told he has two stark choices to avoid public spending cuts ahead of Budget”
