UK Budget 2026: Households Report No Room Left to Cut Costs
Chancellor John Healey prepares his first Budget amid reports that UK households have exhausted their ability to cut spending. While the government promises 'breathing space' through measures like capped bus fares and removed gas standing charges, many families describe the cost-of-living crisis as a chronic, long-term issue rather than a temporary crisis. The Office for Budget Responsibility forecasts modest real household income growth of 0.75% annually between 2026 and 2030, a sharp contrast to the 3% average growth seen between 2000 and 2007. Critics argue that current fiscal policies will lead to the largest decline in living standards since the 1960s, while supporters emphasize financial discipline and tax stability.