Resolution Foundation says ‘poorest half of households will gain… just £14 more than the £144 received by the richest half’
Good morning. The day after the budget is often the moment when big initiatives announced by the chancellor the day before with a flourish start to unravel as experts pore over the small print. There is not much of that happening this morning – mainly because John Healey did not have any really big initiatives up his sleeve. Compared with a normal budget, his tax and spending initiatives were mostly relatively minor. That means that the opposition parties have been struggling to find things to attack, and so instead they have resorted to criticising Healey for what he did not do: slash welfare (the Tory/Reform UK solution), or join the EU’s single market (the Lib Dems’).
Healey has given interviews to all the main broadcasters, which are playing out this morning, but they were recorded last night and they don’t have any sensational new revelations. As Rowena Mason reports, one of the top lines was Healey saying he would cut welfare spending before the election.
It accuses Healey of a “complete failure” to target help with energy bills at those most in need. It says:
The poorest half of households will gain £158 on average from cost of living support this year and next, just £14 more than the £144 received by the richest half – highlighting a complete failure to target help at those who need it most.
It says long-term public spending plans imply a return to austerity. It says:
Tight spending plans beyond 2028-29 imply departmental budgets will take more of the strain in the future. But if the 3% defence target is met and real health spending continues to grow at 2.6%, pencilled-in spending totals imply that funding for 13 ‘unprotected’ departments will fall to just 4.7% of GDP by 2031-32, close to the post-austerity historic low.
It says people will get poorer between now and the end of the parliament. It says:
Median real annual disposable incomes for working age households are set to grow by a paltry £600 over the course of the parliament. Worse still, those gains are already behind us. Between now (2026-27) and the end of the parliament (2028-29), typical incomes are forecast to fall in total by £1,050 (3 per cent).
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