Chancellor John Healey's Budget has been criticised by the Resolution Foundation, which described the package as 'scattergun' and said it did little to arrest the decline in living standards. The thinktank warned that, despite measures to ease household energy costs, Britons will still see energy bills higher this year than during the last energy shock.
Thinktank critique
The Resolution Foundation said Healey's attempt to provide 'breathing space' for households ended up distributing support in a way that benefits the better-off almost as much as the poorest. It argued the Budget failed to offer a sustained boost to living standards and left the country exposed to ongoing economic strain.
Energy support judged insufficient
Although the Budget included steps aimed at reducing gas and electricity costs for households, the thinktank said these measures do not go far enough to prevent a rise in bills compared with the previous energy crisis. The Foundation's assessment suggests the support will be temporary or inadequate to offset broader pressures on household finances.
Political and economic implications
The Resolution Foundation also warned that the package leaves Britain facing a 'painful second half' of the parliamentary term, signalling potential difficulties for the government as cost pressures persist. The critique frames the Budget as offering limited respite rather than a long-term solution to the challenges households and the wider economy confront.
The Foundation's remarks form part of wider scrutiny of the Budget's capacity to stabilise living standards and energy costs; ministers will face pressure to explain how short-term measures fit into a longer-term economic strategy as the year progresses.