Budget debates and finance bills since 1968

The Budget

The Budget is the major financial and economic report made each year by the Chancellor of the Exchequer. Budget derives from the term ‘bougette’ – a wallet in which either documents or money could be kept.  Chancellors use the Budget statement to update Parliament and the nation on the state of the economy, on the public finances and on progress against the Government’s economic objectives.

Chancellors usually reserve any announcements on measures to amend the tax system for the annual Budget, and the speech often includes details of Government spending and borrowing for future years. The tax measures set out in the Budget are implemented in the Finance Bill.  There is at least one Finance Bill each year, as income tax and corporation taxes must be renewed by legislation annually.

The MPs Guide to Procedure explains What happens in the Chamber on Budget day.

Tax changes

As soon as the Chancellor has finished the Budget statement, proposals for tax changes may come into effect immediately.

These proposals must be validated by a single motion, a Provisional Collection of Taxes motion, approved after the Budget speech. In addition, within ten sitting days, Parliament must approve a series of individual Ways and Means resolutions. These resolutions are needed for each provision imposing a new tax, renewing an annual tax, increasing or widening the burden of an existing tax, or for other provisions that need to be in operation before the Finance Bill is enacted. The Finance Bill is required to give permanent legal effect to the Resolutions.

When do any tax changes come into effect?

As soon as the Chancellor has finished the Budget statement, proposals for tax changes may come into effect immediately.

These proposals must be validated by a single motion, a Provisional Collection of Taxes motion, approved after the Budget speech. In addition, within ten sitting days, Parliament must approve a series of individual Ways and Means resolutions. These resolutions are needed for each provision imposing a new tax, renewing an annual tax, increasing or widening the burden of an existing tax, or for other provisions that need to be in operation before the Finance Bill is enacted. The Finance Bill is required to give permanent legal effect to the Resolutions.

When is the budget?

Traditionally the Budget has been in March or April, just before the start of the tax year on 6 April. In autumn 2016, the Chancellor announced plans to move the Budget to the autumn with effect from 2017. See Erskine May: The timing of the Budget and the Spring Statement.

Since 1975, there has been a statutory requirement for the Government to present economic and fiscal forecasts twice a year. Since its establishment in 2010, this has been the duty of the Office for Budget Responsibility (OBR). The Library briefing The Office for Budget Responsibility looks at the role of the OBR.

See the Library briefing The Budget and the annual Finance Bill for information on the budget timetable (section 5.3) and recent developments (section 6).

The Library briefing Key documents: taxation provides an overview of budgets from 2010 to 2023.

Parliament: facts and figures

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This series of publications contains data on various subjects relating to Parliament and Government. Topics include legislation, MPs, select committees, debates, divisions and Parliamentary procedure.

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