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The Budget 2026 latest: Britain faces unprecedented squeeze on incomes, IFS says

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Thanks for joining me. John Healey has ruled out making “crude cuts” to welfare after he failed to tackle the rising benefits bill in Wednesday’s Budget.

The Chancellor acknowledged last night that the current benefits system is “unsustainable” but said he will only look to make cuts “in a Labour way”.

Speaking to the BBC in the wake of Wednesday’s Budget, Mr Healey promised that “there will be a reduction in the benefits bill” before the next election.

However, he said this will not include “crude cuts” to payments.

He said: “We will do that in a Labour way, and we will do that because it is simply not good for Britain, or progressive, to have a bigger and bigger benefits bills.

“This system is unsustainable. I’ve been clear about that. The Prime Minister’s been clear about that. It’s what you do about it.”

He added: “We have to bring the benefits bill down.…

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