Welfare bill climbdown will have ‘a cost’ at budget, says senior minister

Pat McFadden says U-turn will change calculations, as IFS says tax rises in autumn look increasingly likely

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There will be “a cost” to the government’s climbdown on welfare changes at the budget, one of Keir Starmer’s senior ministers has said, as a leading fiscal thinktank said new tax rises appeared increasingly likely.

Pat McFadden, the chancellor of the Duchy of Lancaster, defended Starmer and the work and pensions secretary, Liz Kendall, after the second reading of the government’s main welfare bill passed its first Commons test only after a central element was removed.