Healey backs away from cutting welfare cost despite £28bn public finance shortfall warnings

■ Steady

Healey backs away from cutting welfare costs as IFS warns of £28bn shortfall

On Thursday, Chancellor John Healey backed away from cutting welfare costs this parliament, according to a report, after the Institute for Fiscal Studies said his first budget ducked big tax and spending decisions amid a £28bn shortfall in public finances. Earlier on Thursday, Healey had said the welfare bill would fall before the next election. Wednesday's budget included a £100 payment for 20m households and an extended VAT cut on electricity bills, while the OBR cut its 2027 growth forecast.

• The IFS says the budget ducked big decisions amid a £28bn public finance shortfall.
• OBR documents suggest sickness and disability benefits will cost £100bn a year before the end of the decade.
• The £100 payment goes to 20m households in council tax bands A to D, costing £2.6bn, and the VAT cut on electricity bills is extended to next July.
• The OBR sharply downgraded its growth outlook, citing the Middle East war.