The Budget
The Budget is a financial statement that reviews the tax levels for the country. Tax is collected to pay for public services like healthcare (NHS), education, street lighting and rubbish collection. The budget tells us how much it will cost to provide these services and therefore how much tax is needed to pay for them. By law the amount of tax the government puts on things has to be reviewed each year, which is why we have an annual Budget. The public are usually told about the Budget in March via the Budget Speech. A prediction of how the country will do in the next financial year is also revealed.
A Pre-Budget report is normally given in the autumn before the Budget Speech. This tells people the possible issues, tax and spending that the government is considering for it’s spring Budget. The Pre-Budget report allows feedback from people and businesses in the country.
On the day of the Budget, the Chancellor of the Exchequer poses for photographs outside 11 Downing Street carrying the famous red leather briefcase. This is known as the Budget box and it contains the Budget Statement. The Chancellor will take the Budget box to the House of Commons to give his speech. Once the speech is over, the House of Commons has two weeks to authorise the new taxes before they apply.
Find out the main areas that the Budget affects.