Politics · United Kingdom · 1 hr ago
Burnham defends first Budget as critics say it lacks ambition
Prime Minister Andy Burnham defended his government’s first Budget after critics called it too cautious.
The plan includes a council tax cut linked to energy costs for 20 million households and business-rates relief for 70,000 businesses.
It also removes VAT from electricity bills, a measure announced earlier.
The government says limited public finances constrain its choices, but argues the Budget meets its fiscal rules and the economy is set to improve.
Critics, including the Institute for Fiscal Studies, say its many small measures are unlikely to lift growth and that borrowing reductions have been delayed.
Living standards remain under pressure, with household disposable income per person forecast to be only around 2% above pre-pandemic levels in 2030-31.
Budget analysts will examine the plans more closely at briefings scheduled for Thursday.
Prime Minister Andy Burnham defended the Budget, saying it would help households and businesses despite limited room for manoeuvre.
Critics, including the Institute for Fiscal Studies and opposition politicians, questioned whether its measures would boost economic growth.
The Budget includes a council tax cut to help 20 million households with energy costs and a business rates change affecting 70,000 businesses.
The Office for Budget Responsibility expects household disposable income per person to fall slightly in the near term and be only about 2% above pre-pandemic levels in 2030-31.
The Budget was presented by Chancellor John Healey amid high inflation, rising interest rates and a lower growth forecast for next year.
- Who
- Prime Minister Andy Burnham defended the Budget; Chancellor John Healey presented it. Critics included the IFS and opposition politicians.
- What
- The Budget’s impact on growth and its measures to support households and businesses are under debate.
- When
- The Budget was presented on 28 October 2026.
- Where
- The United Kingdom.
- Why
- Burnham said the measures support people in difficult times despite limited room for manoeuvre; critics said the Budget would do little to boost growth.
Andy Burnham and the Government
Budget critics
Growth impact
Andy Burnham and the Government
Burnham said there were strong signs the economy would improve over the coming years.
Budget critics
The IFS said the Budget contained little that would move the dial on growth.
Scale of measures
Andy Burnham and the Government
Burnham called support for households and businesses bold, given limited room for manoeuvre.
Budget critics
Kemi Badenoch called the Budget not bold enough, while Robert Jenrick described it as a “nothing burger”.
Chancellor John Healey presented the Budget.
Andy Burnham defended the Budget in comments to broadcasters.
The OBR and Resolution Foundation were due to hold a post-Budget briefing, and the IFS was due to publish its analysis.
- Households
- 20 million to receive energy-cost help through a council tax cut
- Businesses
- 70,000 to be lifted out of business rates
- Growth forecast
- The OBR cut its forecast for UK GDP growth next year
- Household income
- RHDI per person forecast to be around 2% above pre-pandemic levels in 2030-31
- Measures
- 98 Budget measures, according to the Guardian article
7 sources
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What people are saying
It’s pretty bold to help 20 million households with energy costs through the council tax cut this winter.
This Budget has a raft of fiddly measures but very little that will move the dial on growth.
not good enough, not strong enough, not bold enough
nothing burger