The Autumn Budget will set out the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR).
Following the Chancellor’s announcement last year, there will now only be one ‘fiscal event’ in each year, held in the Autumn, says the Treasury. From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major Budget although the option has been retained to make further tax changes in the Spring if needed.
In a YouTube video to announce the date of the Autumn Budget, Mr Hammond said he wanted: “an economy that works for everyone”. He said the Budget was designed to produce a strong, resilient and fair economy.
Last year the Chancellor announced that the government will move to a single major Budget each year. The change will allow more time for any changes, such as tax rises, to be implemented before the end of the tax year.
The Treasury says the UK is the only major advanced economy to have made major changes to the tax system twice a year in the annual Budget, usually held in March, and the Autumn Statement.
It says businesses, the International Monetary Fund, Institute for Government, the CBI, Chartered Institute of Taxation and the IFS have all been calling for the change. The Treasury says the move will mean businesses and consumers will face less frequent changes to the tax system.
A Finance Bill will follow the Autumn Budget even though the government only introduced a 2nd Finance Bill recently to implement changes postponed earlier in the year due to the unexpected general election.
The aim of the Autumn Budget will be to reach Royal Assent in the spring, before the start of the following tax year. The change will allow Parliament to scrutinise tax changes before the tax year where most take effect.
The Spring Statement in 2018 will respond to the updated OBR forecast for the economy and the public finances. Even though the aim of the Autumn Statement is to streamline Budget announcements the government says it will retain the “option” to make changes to fiscal policy at the Spring Statement if “the economic circumstances require it.”