Kemi says Britain about to collapse under the weight of welfare after Chancellor refuses to cut handouts in Budget

Published: 10:04 EDT, 28 October 2026 | Updated: 10:39 EDT, 28 October 2026 Britain is on the brink of collapsing under the cost of benefit handouts. Kemi Badenoch warned today after Labour left them untouched in the Budget. The Conservative leader hit out at Chancellor John Healey after he unveiled a raft of tax rises and spending plans in his autumn fiscal showpiece in the Commons. Mr Healey said the UK was being battered by a global economic storm, with the Budget watchdog slashing its forecast for gross domestic product growth next year.The public finances have also taken a battering, with the cost of borrowing soaring and the UK spending £14billion more on debt interest this year.Mr Healey hiked taxes on banks and gambling firms to provide 'breathing space' he promised for households and high street businesses. But at the same time he has set aside £5.5billion to uprate benefits paid to 10million people by 3.5 per cent, in line with inflation.Mrs Badenoch said: 'Just because it's called Universal Credit, doesn't mean that everyone in the universe should be on benefits.' The Conservative leader hit out at Chancellor John Healey after he unveiled a raft of tax rises and spending plans in his autumn fiscal showpiece in the Commons Mr Healey said the UK was being battered by a global economic storm, with the Budget watchdog slashing its forecast for gross domestic product growth next year Mr Healey said two long-awaited welfare reviews will report next month, after reforms were kicked off until later in the Parliament. The bill will be brought down in a 'Labour way,' he said, after Mr Burnham dismissed 'crude cuts'.But the Tory leader said: 'Britain is about to collapse under the weight of welfare. We have to start showing people some tough love. 'He talks about giving people breathing space but they are the ones chocking the economy.' The energy bills support package will cost £2.6billion, with around 20 million households in council tax bands A to D receiving £100 from the Government this winter to help with the bills.Mr Healey said he was 'looking to our banks to help fund breathing space for British families', with the bank tax hiked by an extra 3 per cent for 15 months from January.Mr Healey also announced an increase in gambling taxes to pay for business rates relief for high street firms.He said it would mean that 70,000 businesses would be taken out of paying rates altogether 'meaning half of our shops, restaurants and gyms will now pay no business rates at all'.Despite the economic difficulties, the Office for Budget Responsibility increased its forecast for economic growth in 2026 from 1.1 per cent in March this year to 1.2 per cent.But the forecast for gross domestic product (GDP) growth was slashed from 1.6 per cent to just 1.0 per cent in 2027.The forecast is then unchanged at 1.6 per cent in 2028 before rising to 1.8 per cent in 2029, then 1.7 per cent in 2030 against forecasts of 1.5 per cent in each of those years, then 1.6 per cent in 2031.