Key facts
- IFS director Helen Miller said Healey's budget could lead to brutal spending cuts for some departments.
- The welfare bill will not be part of the spending review focusing on departmental budgets.
- Total welfare spending is forecast to grow from £334 billion last year to £431 billion by 2030.
- Healey doubled the surcharge banks pay on their profits from 3% to 6% for 15 months.
UK Chancellor John Healey has stated that reducing the welfare bill will not be a priority within this parliamentary term, despite earlier indications to the contrary. This comes as the Institute for Fiscal Studies (IFS) warned that the government faces a significant public finance shortfall, potentially leading to harsh spending cuts across departments. The IFS noted that Healey's budget avoided major decisions on taxation and spending, leaving a £28 billion annual gap to offset inflation's impact on future plans and meet defense spending targets. Healey's comments on welfare came amidst discussions about the budget's approach to the cost of living, with measures like a £100 winter payment for households. However, critics, including the Resolution Foundation, have described the budget's approach to cost of living support as "scattergun" and insufficiently targeted.