Healey backs away from welfare cuts as the IFS warns of a £28bn gap

Shortfall in public finances

28 billion pounds

The Institute for Fiscal Studies says the budget leaves a £28bn shortfall to cover inflation and the goal of spending 3 per cent of GDP on defence by 2030.

The chancellor backed away from a lower welfare bill this parliament, saying no timetable has been set, and pointed to two coming reviews on youth employment and disability benefits.

What the budget does

• Bank profit surcharge doubled, 3% to 6%
• Higher taxes on landlords
• £100 winter payment for most households

To fund help with energy bills, he raised taxes on banks and landlords and doubled the surcharge on bank profits for 15 months.