The Alternative Budget 2026
IEA plan proposing wider VAT, welfare restraint and a three-year triple-lock suspension.
Published on 19 October 2026, The Alternative Budget 2026 sets out an Institute of Economic Affairs plan to widen VAT, restrain welfare spending and pause the State pension triple lock.
Last refreshed: 22 October 2026
Can wider VAT and a triple-lock pause balance Britain's day-to-day budget?
Timeline for The Alternative Budget 2026
IEA plan would suspend triple lock
Is Britain Actually Broke?Background
The Alternative Budget 2026 is a policy report from the Institute of Economic Affairs, written by its chief economist, Valentin Boboc. It presents a distinct fiscal programme built around a broader VAT base, removal of several taxes on assets and transactions, and lower planned welfare spending. Its pension proposal would suspend the state pension triple lock for three years.
The report belongs to the pre-Budget policy debate rather than the official forecasting process. Its publisher says the package would restore the current budget to surplus in 2027-28 and reduce debt as a share of the economy by the end of the Parliament. Those are the IEA's projections, not an Office for Budget Responsibility costing. That distinction defines the report's value: it offers a worked ideological choice for tax and spending policy, while its forecast outcomes remain advocacy claims.
What is the IEA Alternative Budget 2026?
What does the Alternative Budget 2026 propose for the triple lock?
When does the IEA say its Alternative Budget reaches current surplus?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 22 October 2026. Editorial standards.