Resolution Foundation criticizes 2026 budget amid grim economic outlook
- The Resolution Foundation has labeled the 2026 budget as 'scattergun'.
- Average annual energy bills are projected to rise to £1,750 in 2026-27.
- Households face a £1,050 decrease in disposable income by the next election.
- Chancellor John Healey admitted the government cannot remove all economic pressures.
- The Office of Budget Responsibility described the current economic outlook as a 'pretty grim picture'.
On Wednesday, 29 October 2026, the Resolution Foundation described Chancellor John Healey’s 2026 budget as "scattergun" and warned that it is insufficient to address the economic challenges facing Britain. The thinktank stated that current cost-of-living support is "spread far too thinly" and will leave families facing higher energy bills than during the previous price shock.
A thinktank has warned that the government's budget will fail to prevent Britons from facing higher energy bills.
Energy bills projected to rise to £1,750
The Resolution Foundation projects that average annual energy bills will rise to £1,750 in 2026-27 as a result of government aid. Despite measures included in the budget, analysts caution that energy costs are poised to spike, leading to a £1,000 reduction in disposable income.
Greg Thwaites noted that the energy support does not account for actual energy usage, providing the same £100 benefit to low-income households with high consumption as to higher-income households with lower consumption.
Households face £1,050 drop in disposable income
According to the Daily Mail, the dual effect of Labour’s tax raids and the energy crisis means families are set to be £1,050 a year poorer by 2029.
The Resolution Foundation forecasts that typical disposable income will decrease by £1,050 over the next two to three years by the time the next general election is due.
Chancellor John Healey defends budget measures
Chancellor John Healey stated the budget is intended to provide support for families and businesses that have been affected by a global economic storm. Healey said the budget will move towards cutting energy bills "for good".
On 29 October 2026, Healey admitted that the Labour government cannot "remove all pressures" currently facing Britons.
Pensions minister Torsten Bell's role in budget drafting
Pensions minister Torsten Bell played a key role in drafting the measures for the 2026 Budget. Bell served as chief executive of the Resolution Foundation until 2024.
He was responsible for the 2015 Edstone stunt, which involved carving six election pledges into an 8 foot 6 inches tall limestone slab.
The Resolution Foundation, the think tank Bell previously led, criticized the budget as scattergun.
Office of Budget Responsibility warns of grim economic outlook
The Office of Budget Responsibility stated that the United Kingdom's fiscal and economic position remains very challenging. This follows nearly two decades of stagnation and shocks that have increased national debt.
Professor David Miles of the Budget Responsibility Committee described the current economic outlook as a pretty grim picture. Miles reported that there has been virtually no growth in real household disposable income per person in the seven years since the period just before Covid.
Warnings that the worst is yet to come
Experts have issued warnings that the worst is yet to come following the introduction of Labour's scattergun budget. The Resolution Foundation warned that the government's failure to take decisive action in the 2026 Budget will cause fiscal choices to unavoidably get starker next year.
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- Healey’s Budget slammed as ‘scattergun’ by think tank formerly run by Treasury minister (independent.co.uk)
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