Story perspectives

IFS Warns Inflation Means Cuts or Tax Rises Before 2026

By Drooid · Oct 12, 2026, 6:28 AM UTC · How we work

Summary

Story summary

The Institute for Fiscal Studies warned Chancellor John Healey that inflation will force cuts or tax rises before Oct 28, 2026 Budget.
The Institute for Fiscal Studies said a “steady-as-she-goes” Budget is not an option.
The Institute for Fiscal Studies said raising defence spending to 3 % of GDP by 2030 would cost £11 billion in 2030-31.
The Institute for Fiscal Studies estimated keeping current public-service budgets would need a £25 billion top-up in 2030-31.

1 of 1

Story summary

The Institute for Fiscal Studies warned Chancellor John Healey that inflation will force cuts or tax rises before Oct 28, 2026 Budget.
The Institute for Fiscal Studies said a “steady-as-she-goes” Budget is not an option.
The Institute for Fiscal Studies said raising defence spending to 3 % of GDP by 2030 would cost £11 billion in 2030-31.
The Institute for Fiscal Studies estimated keeping current public-service budgets would need a £25 billion top-up in 2030-31.