Healey’s budget paves way for ‘brutal’ spending review next year, warns IFS

Thinktank says chancellor has given himself a mountain to climb after ducking big decisions in low-key speech

John Healey has paved the way for a “brutal” spending review next year after his budget failed to cover a £28bn shortfall in the public finances needed to avoid a return to austerity, according to Britain’s leading tax and spending experts.

A day after his address to the Commons, the Institute for Fiscal Studies (IFS) said the chancellor had left himself a mountain to climb by ducking several big decisions in his debut tax and spending statement.

After his low-key speech designed with febrile bond markets in mind, the thinktank said Healey had left plans for overall departmental spending across the rest of the parliament broadly unchanged in cash terms.