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Experts give their verdict on the 2026 Budget

The Institute for Fiscal Studies (IFS) has warned that Chancellor John Healey ’s “risky” Budget leaves the UK exposed to future economic shocks and fails to tackle stagnating household income growth.

Government fiscal headroom has been cut to £15bn, leaving less buffer to absorb bad news while public service departments face real-terms budget cuts due to inflation.

IFS director Helen Miller criticised temporary cost of living packages, including £100 energy bill payments, as inadequate substitutes for long-term economic growth under Prime Minister Andy Burnham.

Major business groups and economic commentators expressed disappointment, with the Office for Budget Responsibility describing the current economic period as “dismal”.

Concerns were also raised over plans to fund defence spending commitments by raiding government reserves and cutting capital budgets across other departments.

In full Healey’s…