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Turmoil as No 10 forced to admit welfare won’t be cut by next election

The Independent·Millie Cooke and David Maddox·about 2 hours ago
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Andy Burnham was forced to pledge not to cut benefits in the next three years after his chancellor sparked confusion over the Budget.

Downing Street issued a hurried statement after John Healey suggested in an interview that there would be a “reduction in the benefits bill” before the next general election.

He insisted the government would “do that in a Labour way”, leading to reports that he had confirmed the cuts would start before July 2029. That forced No 10 to deny any such plans, saying it was an incorrect interpretation of his reply.

The confusion came as a leading think tank, the Centre for Social Justice (CSJ), warned that the £33bn in “stealth tax” from freezing income tax thresholds on workers would be completely swallowed up by a £3bn rise in the benefits bill.

Meanwhile, Institute for Fiscal Studies (IFS) head Helen Miller warned that Mr Healey’s “risky” Budget had exposed Britain to future economic shocks and failed to tackle the “worst decade for growth” for household incomes on…

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