Healey's Budget criticised by fiscal think tanks over growth and spending plans

Unbiased summary

Chancellor John Healey presented his first Budget, which the Institute for Fiscal Studies (IFS) described as 'risky' due to reduced fiscal headroom, warning that temporary cost-of-living measures are no substitute for a strong economy. The Resolution Foundation projected the 2020s could be the worst decade for living standards since the 1960s, with real household disposable income growth of just 1.4% per person, and warned that planned spending slowdowns could force real-terms cuts for 13 government departments. The Centre for Social Justice estimated a £33bn stealth tax from frozen income tax thresholds. The Office for Budget Responsibility downgraded next year's growth forecast to 1%. Healey defended the Budget, stating the government was prepared to 'control spending'.

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Coverage by outlet

The Independent centre-left

Angle Frames the Budget as a 'risky' failure that neglects long-term growth, focusing on IFS criticism and a stealth tax on workers.

Bias Emphasises IFS warnings about exposure to shocks and the 'worst decade for growth', while downplaying any positive elements and omitting Resolution Foundation's specific critique of spending cuts. Mentions Burnham's approach critically, which is not central to the Budget itself.

Healey’s ‘risky’ Budget criticised for failing to tackle worst decade for UK growth on record

City AM centre-right

Angle Focuses on spending cuts and potential austerity, highlighting think tank warnings about departmental budget cuts and living standards.

Bias Emphasises the risk of 'post-austerity historic low' spending and the need for an 'honest conversation' about state spending. Omits the IFS's 'risky' label and the CSJ's stealth tax analysis, while downplaying any defense of the Budget beyond Healey's brief comments.

Healey under fire on spending plans as UK faces ‘worst decade for living standards on record’

Daily Mail right

Angle Portrays the Budget as a 'scattergun' failure that leaves households worse off, with high taxes and modest giveaways, while attacking Labour's welfare and tax policies.

Bias Emphasises £1,050 annual loss per household and the 'Gherkin Budget' label, heavily quoting Conservative criticism and highlighting inheritance tax rises. Omits the IFS's specific 'risky' warning and the CSJ's stealth tax figure, instead focusing on benefits spending and tax burden to push a right-leaning narrative.

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