Labour will reduce ballooning benefits bill, claims John Healey
John Healey has vowed that Labour will reduce the benefits bill, after admitting the current system is “not working”. The Chancellor created widespread confusion earlier this week, after failing to clarify whether the ballooning cost of welfare will be cut before the next election by declining to put a timeframe to it. But Healey claimed [...]
Chancellor John Healey has pledged that the Labour government will reduce the ballooning benefits bill, despite the system's current inefficiencies. The Chancellor admitted the current welfare system "is not working" and claimed the bill will shrink under this government. However, Healey declined to provide a timeframe for the cost reduction during an interview on BBC’s Laura Kuenssberg.
Healey stated that changes would begin next year, emphasizing that Labour has already demonstrated how they will bring the bill down long-term. The benefits bill rate of increase has slowed since Labour took office, compared to the soaring numbers under the Tories. The government is also prepared to make "hard decisions" on major public spending cuts, as the UK's debt stands at 95% of total GDP.
The OBR predicts growth will slump and unemployment and inflation will surge in the coming years, requiring an extra £11bn in revenue between 2029 and 2032 to prevent spending cuts.
Healey highlighted the need for efficiency savings and meeting the spending review challenge, pointing to devolution and public service transformation as ways to achieve this. However, his maiden Budget faced criticism for addressing market fears and pressing economic issues inadequately. Former economic adviser Andy Haldane described it as "small beer," stating that more radical measures were needed to quell policy nervousness.
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