The Chancellor, Rachel Reeves, is facing significant criticism from a leading economic think tank for what it describes as a lack of ambition in her recent Budget, particularly regarding measures to stimulate the UK's economic growth.
Think Tank Delivers Stinging Budget Critique
In a detailed analysis of the fiscal event, the Institute for Fiscal Studies (IFS) directly challenged the Chancellor's approach. Helen Miller, Director of the IFS, stated that the government had shied away from the meaningful reforms required to genuinely improve the country's economic prospects.
Ms Miller emphasised that while growth makes the nation richer and simplifies problem-solving, the latest Budget did not reflect the Chancellor's own mission to prioritise economic expansion. She expressed particular disappointment with the missed opportunity for comprehensive tax reform, arguing it was the key to ensuring that necessary tax increases do minimal damage.
OBR Forecasts Paint a Challenging Picture
The IFS's warnings follow a sobering assessment from the Office for Budget Responsibility (OBR), which published its own Budget analysis. The independent fiscal watchdog presented a mixed but ultimately concerning outlook.
While the OBR upgraded its growth forecast for this year to 1.5%, up from 1%, it issued a series of downgrades for the subsequent years. It now predicts growth of just 1.4% in 2026 (down from 1.9%), 1.5% in 2027 (down from 1.8%), 1.5% in 2028 (down from 1.7%), and 1.5% in 2029 (down from 1.8%).
A Call for Ambition Over Short-Term Fixes
Helen Miller did not mince words in her assessment, describing the Budget as one from a government trying to 'scrape through'. She acknowledged that reform is difficult but argued that given the scale of the challenges and the government's own 'lofty rhetoric', the public was 'entitled to ask for more'.
She also commented on specific tax policies, agreeing with her predecessor, Paul Johnson, who had urged a full revaluation of council tax bands. Ms Miller criticised the decision to potentially add new property taxes based on outdated valuations, stating that such moves only add complexity to a system that needs fundamental repair.
Looking forward, Ms Miller suggested that now the intense Budget speculation is over, the government should focus its bandwidth on the central challenge of boosting productivity and growth.
