The chancellor Jeremy Hunt will announce his spring Budget on Wednesday, March 6, outlining the government’s plans for spending and taxes.
After a photoshoot outside Downing Street displaying his famous Red box, set to unveil it at 12.30pm,
The spring Budget is an annual statement where the chancellor of the exchequer makes a statement to MPs in the Commons, accompanied by a Treasury report which includes more details on the announcement.
Hunt’s speech in the Commons will start at 12.30pm and last for an hour.
Labour leader Keir Starmer will respond immediately in the chamber.
MPs then debate the Budget over the following days. They have to approve the tax proposals in a Finance Bill for Hunt’s statement to pass into law.
It’s a pivotal moment in politics, because the government could make drastic cuts to some services and boost others.
But, it’s worth remembering that only some of the chancellor’s announcements will apply to the whole of the UK.
Any decisions on education spending, for instance, will apply only to England, while defence spending announcements will affect the whole country.
The independent watchdog, the Office for Budget Responsibility, also publishes an update on the economy after Hunt’s speech.
The UK economy has been struggling to recover from the Covid pandemic and the cost of living crisis, triggered by skyrocketing energy prices – the added Brexit costs and the fallout from Liz Truss’s mini-budget did not help, either.
The UK was in recession for the latter half of 2023 – meaning there were six months of negative growth – although the Bank of England is hopeful that this will be a short, shallow, dip for the economy.
Hunt could cut taxes, following the substantial backlash he got for raising the tax burden to its highest level in 70 years – although the International Monetary Fund urged the government not to cut taxes last month.
Hunt may also make it easier for first-time buyers looking to get into property by introducing a 1% deposit rule.
Cutting an expected rise in fuel duty, inheritance tax and holiday lets could be on the cards, as could introducing a vaping tax, or childcare reforms.