Key facts
- IFS warned Healey's budget leaves UK more exposed to economic shocks.
- Household incomes face the worst decade for growth on record.
- Government departments face real-terms spending cuts.
- OBR forecasts household disposable incomes to fall 0.6% next year.
- Inflation forecast raised to 3.5% for this year.
UK Chancellor John Healey's first budget has faced sharp criticism from economic think tanks, with the Institute for Fiscal Studies (IFS) warning it is "risky" and leaves Britain more exposed to economic shocks. The IFS stated that temporary cost of living measures are insufficient and that government departments face real-terms spending cuts due to unchanged budgets amid higher inflation. The Office for Budget Responsibility (OBR) also issued a "grim picture" for living standards, forecasting a fall in household disposable incomes and a downgrade to growth estimates for next year, partly due to the impact of the war in the Middle East on energy costs and borrowing.