- The Institute for Fiscal Studies has warned chancellor John Healey that he must raise taxes or cut benefits by around £35bn in the upcoming Budget to avoid severe public service cuts and fund increased defence spending.
- The think tank highlighted that high inflation, partly driven by conflict in the Middle East, is eroding departmental budgets, making a "steady-as-she-goes" Budget unviable.
- IFS director Helen Miller urged transparency over public spending plans, warning that setting unachievable spending limits would render the Budget a "work of fiction".
- The IFS cautioned against significantly increasing government borrowing, pointing out that national debt remains historically high with interest costs having more than doubled as a share of GDP since 2019.
- In response to the report, shadow chancellor Andrew Griffith urged the government to cut welfare rather than raise taxes, while Green Party leader Zack Polanski called for immediate action on energy bills and home insulation.
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