Budget 2026 warning that tax rises may be needed to protect essential services

Maintaining public services and funding higher defence spending could lead to £35billion worth of tax hikes or benefit cuts, IFS warnsIFS says Chancellor John Healey faces a ‘tight picture’ going into the Budget (Image: Betty Laura Zapata/PA Wire)Chancellor John Healey faces having to hike taxes in this month’s Budget to protect front-line public services, economists have warned.