The Buffalo Brief

Healey faces £35bn Budget challenge to meet spending pledges, says think tank

BBC Business · Oct 12, 3:50 AM CT

BBC Business reported that the Institute for Fiscal Studies says the government will need a "top-up" of billions of pounds if it wants to meet its spending plans.

The same report said that Chancellor John Healey faces having to find £35bn to avoid cuts to public spending while meeting defence promises in his first Budget, an influential think tank has warned.

It also noted that the Institute for Fiscal Studies (IFS) said that if the government wants to raise defence spending to 3% of national income by 2030 and lift health spending without squeezing other departments, it will need a "top-up" of billions of pounds.

The account added that Higher inflation, caused by the Iran war, could eat into what the government hoped to spend on public services, meaning Healey will have to choose between spending cuts, tax rises, or a mixture of both, the IFS said.

The Buffalo Brief wrote this from the public report by BBC Business. Nothing was added past what that report said.