The Institute for Fiscal Studies (IFS) now turns to the forecasts published by the Office for Budget Responsibility (OBR) yesterday.

Taking all of the policies announced into consideration, the IFS says there was a "modest giveaway in the short term" which then "tapers off and turns into a modest takeaway in the later forecast years".

"Taken together, changes to the forecast and policy choices leave borrowing higher than was [previously] forecast... in every year of the forecast," the IFS says.

Despite this, a series of charts show that borrowing is still expected to fall over the course of the forecast period as we approach 2031-32.

"There's more borrowing in every year, but there's still a consolidation baked into that forecast - and not an unambitious one," the IFS says.

Because the chancellor has allowed borrowing to increase, headroom is low and there is less scope to absorb future crises, the IFS adds.

Chris Mason
Political editor

The Treasury is disputing that Chancellor John Healey suggested to the BBC that the benefits bill will be cut before the next general election.

When Healey was asked by the Today Programme on Radio 4 whether there would be a cut in the bill before polling day, he said: "There will be, there will be a reduction in the benefits bill, we'll do that in a Labour way."

But several Treasury sources took issue with this being interpreted as a promise to do so by the next election, with one suggesting Healey was explicitly attempting to avoid that impression being left.

It suggests, instead, that ministers are not committed to cutting the benefits bill by the next election.

• Read more: Treasury will not commit to reducing welfare bill before next election

Dearbail Jordan
Senior business and economics reporter

The outlook for any increase in household income is "depressing", the IFS says.

Despite the chancellor announcing measures yesterday to help people with the cost of living, Miller warned: "This decade looks set to be the worst decade for growth in household incomes on record.

"No amount of temporary cost of living packages will fix that.”

That tallies with the Office for Budget Responsibility's (OBR) assessment that the picture for Britons in the years ahead is "pretty grim".

Disposable household incomes, when taking inflation into account, will fall in the coming years and will only tick up a little in 2030-31.

Image source, IFS

Miller continues to talk about the cost of living package - including the one-off £100 energy payment.

She says it is "sad" that this is based on property values "35 years out of date" and that the government hasn't invested in data that would enable more targeted measures.

"Alongside other temporary measures, it will help households over winter," she says, but underlines that winter "still looks tough".

Small isn't necessarily bad, she adds, and says there were some good things in this Budget such as the change to a taper carer allowance.

However, Miller says she is "grump" about how Healey decided to "plug a hole" in relation to defence spending.

She says she's still no wiser on how the chancellor aims to get to the spending target of 3% of GDP by 2030, "let alone" 3.5% by 2035.

Miller begins by saying this was "broadly" the Budget that many had been expecting - with a "relatively small" cost of living package and a "handful" of tax rises with borrowing higher across the rest of the decade.

One surprise, she says, was the number of measures within it - 98.

Some were what the PM has called "everyday fixes" but there was also "a lot of small, unhelpful fiddling with the tax system".

Miller says the chancellor was right to point out that the UK’s planned consolidation is "more ambitious" than other G7 countries - but, she adds, he was also right to mention that the the economic outlook is worse than it was in March.

Dearbail Jordan
Senior business and economics reporter

Image source, IFS

The government may have to top-up departmental spending by around £17bn to avoid cuts fuelled by higher inflation, according to the Institute for Fiscal Studies (IFS).

The think tank says that both rising inflation and inherited plans to slow spending growth in the coming years means there could be a substantial gap to fill by 2030-31.

However, Chancellor John Healey failed to provide much clarity on what he plans to do, according to IFS director Helen Miller.

"I am left thinking what I thought before the Budget," she said. "Public service spending plans look extremely tight. They don’t look to me like plans that this government would want to deliver.

"Whether or not they are delivered matters because the spending plans underpin the plan to bring down borrowing," Miller added.

Healey will set out his plans for government departments in next year's Spending Review.

But Miller says she's been left with the impression that Healey is hoping, in the interim, that the economy improves so he can make good on a plan to cut borrowing "without having to also make large cuts to public spending or raise taxes".

• You can watch the IFS's response at the top of this page by clicking watch live

The Institute for Fiscal Studies (IFS) will present its analysis of the key policy decisions within yesterday's Budget in a few moments.

The organisation's director, Helen Miller, will start with some opening remarks that we will bring to you in the page.

You will also follow along by clicking watch live at the top of this page.

Eleanor Lawrie
Social affairs reporter

Image source, Alice Lester

New mum Alice Lester, 33, says the announcement of parental pay for self-employed partners will have a huge impact on families like hers.

Her partner Andy runs his own business but their four-month-old daughter was born prematurely, and so required extra care.

"It’s too late for me but I think it’s really important for other young families. We were in and out of hospital a lot and we really lost out financially," she says. "This would have been a huge help just to give us some security.

"Self-employed people are the backbone of the country so it’s a really welcome change. I’m thrilled other people won’t be in our position, it was really tough."

About 150,000 parents who currently can’t get statutory parental pay, including self-employed fathers, will be eligible for two weeks' support worth up to £194 a week from 2029.

Kevin Peachey
Cost of living correspondent

It was an out-of-the-ordinary chat on the bus to work for lots of people today: “So, what council tax band are you in?”

You need to be in band A to D to receive £100 in energy bill support. Many scrambled to remind themselves into which band they fall.

Indeed, the online checker on the government website has struggled to cope with the extra traffic.

But this conversation raises a couple of issues. One, raised by think tanks, is a whether this is a well targeted approach for those most in need.

Another is that council tax bands are based on 1991 valuations so feel out of date to many homeowners.

And, lastly, a reminder that you will be paid the money automatically if eligible. Don’t let scammers convince you that you somehow need to make a claim.

Earlier this morning, BBC Breakfast spoke to people at the Foxton community centre in Preston.

Cath who runs the centre says there "wasn't much mention of the voluntary sector" in the Budget, but there were "some great things for young people". She says she was "dead pleased" to hear that.

On energy bills, she says £100 "isn't going to go far" for a lot of people. She says lots of the people the Foxton Centre helps are in supported accommodation or temporary housing.

Elliot, 17, says he would like to have seen more "actual support from the government" on things like "work placements" and work experience during education.

He says he spent "two years actively looking for a job" and went through around "seven interviews".

Meanwhile, Daniel - who works at a fourth-generation family cheesemaker in rural Lancashire - says there weren't enough long-term measures in the Budget.

"We're generally planning for generations, not Budget cycles," he says.

He says he'd like to see more focus on food security and the rural economy.

This could be second worst Parliament for living standards since the 1950spublished at 09:48 GMT 29 October

09:48 GMT 29 October

Dharshini David
Deputy economics editor

Overnight analysis from the Resolution Foundation expands on a point I was highlighting yesterday.

Even after the extra help is taken into account, households' income after inflation and tax are set to be typically lower across the next two years than the start of the parliament.

This could be the second worst Parliament for living standards - or income growth - since the 1950s. It's a sign of how much the war in Iran has blown prosperity off course.

But it can’t be all be blamed on the war - taxes haven’t helped.

Although there were a few major measures aimed at households, the policy of previous chancellors of freezing the thresholds at which different rates of tax on income apply - fiscal drag - has been maintained in the background, scooping more money out of pay packets.

Overall, this Budget has the tax burden, the proportion of the nation’s income going to the tax income, rising to a new historic high of 38.6%

The upshot is that official forecasters reckon real incomes - or spending power - may only inch up by 1%, with a series of shocks and higher taxes threatening a decade of stagnation.

Jemma Crew
Business reporter

Helen Loxley was made redundant from a sales role in May and is currently on Job Seekers Allowance. The solo homeowner, based in Sheffield, would usually regularly overpay her mortgage but isn’t able to right now.

She has been calling for the government to look at raising the tax-free personal allowance, currently frozen until 2031, "so that people have actually more cash in their pockets to spend on the ever-increasing bills".

She’s disappointed this wasn't addressed during the Budget.

The 40-year-old welcomes the decision to give millions of households in council bands A-D £100 to help with rising energy bills.

She is concerned, though, that removing gas standing charges will push the price up and doesn’t "feel enough has been done to help those struggling to pay their energy bills".

She also is pleased to see the government has backtracked on a plan to reduce the tax-free cash ISA limit from £20,000 to £12,000 a year.

Colletta Smith
Your Voice correspondent

We heard from 24-year-old Chloe Holmes yesterday, who told us she was keen to see the chancellor announce some specific help for people her age.

Having heard the Budget, she says she’s “pleased to hear about the new schemes” announced by the chancellor yesterday.

"I think the Budget gives young people a more realistic route to getting on the property ladder, but I don’t think it all together solves the overall housing affordability issue and long term costs definitely matter."

Chloe is saving to buy her first home with her partner.

"Young people are facing high house prices, rising living costs and wages that often struggle to keep pace," she says.

"Even if saving for a deposit becomes easier, people still need to pass mortgage affordability checks and be able to manage their monthly payments and other housing costs."

With a whole host of announcements yesterday, you could be left wondering what impact the policies may have on you.

We've put together a guide on how they impact you:

We've also heard from Liberal Democrat leader Ed Davey, who has been speaking on BBC programmes this morning.

Asked on BBC Breakfast what was good about the Budget, he says the £100 energy payment will be identified as the best item for many people, but adds that it is "not good enough" when you consider the "stealth tax rises" which "haven't had publicity".

This is a reference to the fact that income tax thresholds, which have been frozen under successive chancellors, will stay at current levels until April 2031 as planned.

Davey calls it a "£76bn stealth tax rise on British people", adding that "nearly 7m people" will be paying income tax "who weren't before".

He says to avoid this, the UK has got to grow its economy - which means "rejoining the single market, getting in the customs union, [and] trading with Europe again so we can grow and therefore cut people's taxes".

In an interview hours after yesterday's Budget, Chancellor John Healey pledged a "reduction in the benefits bill" following criticism by some political parties about what they said was a lack of detail on welfare.

Here's a quick reminder of what we heard:

• Speaking to the Today programme, Healey referenced the "economic storms" affecting countries around the world, and said the government could not solve the cost of living crisis but was seeking to help where it can
• He reiterated that the £100 energy payment would be for "most households" and help people as they face a rise in energy bills this winter
• Defending his decision to increase taxes on savings and landlords, he said he wanted to protect income that was earned through employment
• Healey described the welfare bill as "unsustainable" and said the government was reducing its rate of increase through measures like face-to-face assessments

Turning to welfare, Healey says there are two reports out next month which will help map out how the system needs to change in the long run.

He adds that they are reducing the rate of increase in the welfare bill compared to previous period under the Conservatives - citing bringing back face-to-face assessments and changing Universal Credit.

He says the system is currently "unsustainable" and says he has a "moral duty" to help young people not in employment, education or training (Neet).

Asked whether there would be cuts in welfare before the next election, Healey says: "There will be. There will be a reduction in the benefits bill.

"We'll do that in a Labour way and we'll do that because it is simply not good for Britain or progressive to have a bigger and bigger benefits bill."

The Treasury later disputed that the chancellor said the benefits bill would be cut before the next general election - read more.

Healey defends his decision to increase taxes on savings and landlords, saying he wanted to protect income that was earned through employment.

He also says he wanted to relieve the cost of business and the cost of living in the "fairest possible way" by increasing taxes on betting shops.

He says 70,000 of high street firms - shops, bakeries, cafes, pubs and more - will be relieved of business rates for two years.

• As a reminder, the chancellor announced yesterday he would increase taxes on gambling machines and exempt vape shops from business rates relief.
• Landlords also face a tax rise on rental income from 2027, while the rate of tax on income from savings will also rise after yesterday's Budget.

We can now bring you more details of an interview with Chancellor John Healey that was recorded after the Budget yesterday.

The chancellor begins by listing "economic storms", including the Iran war and Russia's invasion of Ukraine.

He says they are hitting "worldwide" and acknowledges "people are feeling it", adding that they are hitting government costs too.

On the £100 energy payment announced yesterday - he says that will be for "most households" and it's a way to get money to people at a time they are facing a rise in energy bills.

He says the government cannot completely remove the cost of living pressures but can help to create breathing space - and adds he has asked the banks to help fund that.

Chancellor John Healey's interview with BBC Radio 4's Today programme, recorded yesterday, is playing at the top of this page.

You can follow along by clicking watch live above. We'll also bring you key updates here.