What happens on Budget day
Before the Budget
The pre-Budget report, published by the Chancellor each year in the autumn, reports on progress since the previous Budget, provides an update on the state of the economy and can make announcements about proposed new taxes that will be implemented as part of the next Budget.
The last pre-Budget report was published on 24 November 2008.
The day before the Budget, the Chancellor has an audience with the Queen to inform her of Her Majesty’s Government’s Budget proposals.
Budget day
The Cabinet meets in the morning before the Budget statement to discuss the announcements that will be made by the Chancellor in the Budget.
The Chancellor departs from No11 Downing Street to Parliament, with his speech in the Red Box. Traditionally, the Chancellor is photographed on the doorstep of 11 Downing Street holding the Budget Box before he goes to Parliament.
If the Budget is on a Wednesday, the Chancellor delivers his statement to Parliament at 12:30. The Leader of the Opposition, rather than the Shadow Chancellor, responds to the Budget statement.
Once the Chancellor has returned to his seat following his statement, information associated with the Budget, including the Budget document itself – the Red Book - is made available to Members of Parliament, the public and the press. The statement, report and associated Budget documents are made available on the HM Treasury website.
The statement is then followed by four days of Parliamentary debate on the Budget Resolutions - the basic parts of the Budget that renew annual taxes, such as income tax - covering different policy areas such as health, education and defence.
The Chancellor traditionally makes a Budget Day broadcast to the nation during the evening of Budget Day. The broadcast provides the Chancellor with an opportunity to outline the intentions and measures directly to the public. The opposition parties have an opportunity to respond in their own public broadcasts during the days that follow the Budget.
After the Budget
Parliament debates the Budget for 4 days after the Budget statement. More information on Budget Resolutions.
Then follows the Parliamentary process of putting the measures announced in the Budget, and the preceding pre-Budget report, into legislation.
Changes to taxes announced in the Budget, including changes introduced with effect from Budget day or the start of the financial year on 6th April, are put into law in the annual Finance Bill.
The Bill is normally published in draft shortly after the Budget, and is considered by Parliament over several weeks. The biggest measures and issues are debated in Parliament by a committee of the whole House, but more detailed aspects of the Bill are dealt with in a standing committee of MPs.
Royal Assent is usually given in late July. At this point all Budget measures become law.
The Finance Bill process is a little different to that of other legislation: as the House of Lords has no power to amend laws on taxation the Bill is not debated in detail in the Lords.