UK Budget criticised for thin cost-of-living support and defence funding gaps
Think-tank Resolution Foundation says the Budget spreads aid too thinly, while opposition figures argue the plan leaves public finances fragile and defence under-funded.
The UK Treasury’s spring Budget introduced a series of measures aimed at easing household costs, 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 relief but acknowledged that the government cannot completely eliminate cost-of-living pressures.
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 too thinly to prevent energy bills from exceeding 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 made tougher welfare choices and properly financed defence targets.
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.
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.