UK Budget criticised for meagre cost-of-living help and glaring defence funding gaps
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Think-tank Resolution Foundation says the Budget parcels out support too thinly, while opposition figures argue the plan leaves public finances brittle and defence dangerously under-funded.
The UK Treasury’s spring Budget introduced a series of measures that offer only limited relief for households, including a £100 one-off payment for 20 million households in council-tax bands A-D. Chancellor John Healey said the payment would provide immediate help, while also admitting that the government cannot fully wipe out cost-of-living pressures that have been hammered home by years of stagnant wages and rising bills.
The Resolution Foundation, a think-tank focused on lower- and middle-income earners, described the Budget as “scattergun” and warned that the support is spread far too thinly to stop energy bills from climbing above levels seen during the 2022 price shock. Chief Executive Ruth Curtice said typical annual energy bills are still projected to reach £1,750 in 2026-27, and that disposable income could fall by about £1,050 by the end of the parliamentary term.
Shadow Chancellor Andrew Griffith told BBC Radio 4’s Today programme that the Budget made no cuts to public spending and left the public finances “more fragile”. He criticised the government for “scrabbling around” for extra defence funding and said his own alternative plan would have imposed tougher welfare choices and properly financed defence targets instead of leaving them half-funded.
Office for Budget Responsibility chair Jonathan Haskel warned that borrowing costs have risen sharply, adding about £14 billion to the interest bill since the last forecast. He noted that if current commitments to defence, education and health are maintained, other departments could face a 2.6% cut, exposing once again how squeezed public services are being asked to do more with less.
Opposition parties also reacted strongly. Conservative leader Kemi Badenoch accused Labour of an “out-of-control welfare system”, while Reform UK and the Green Party said the Budget failed to address the growing benefits bill and lacked ambition on wealth taxation. Labour’s Elin Jones, Scotland’s First Minister John Swinney and Northern Ireland’s Finance Minister John O’Dowd all said the Budget fell short for their regions.
Analysts highlighted that the £100 energy payment may not offset the expected rise in winter bills, which could increase by over £400 for many families. The Institute for Fiscal Studies noted the package is “small overall” but “ram-packed with measures”, and that households are likely to feel worse off after winter.