Chancellor Rachel Reeves has suggested she will present a single annual budget in the autumn during her tenure in the role.
Speaking when presenting today's Budget, Reeves pledged that the government would balance the current budget in the third year of every budget "held each autumn".
In the three years since 2021 there have been six Budgets plus various autumn statements - often due to a change in government as the UK has gone through four prime ministers and five chancellors in that period.
For many years Budgets were held in the spring, ahead of the start of the tax year, but Philip Hammond, who served as chancellor between 2016 and 2019, aimed to move the Budget to the autumn to give greater warning of looming tax changes.
By committing to just one Budget a year in autumn, Reeves is aiming to provide greater clarity and flexibility, increase Parliamentary scrutiny, and support long-term planning.
Reeves attributed her decision to reverse this trend to the stability rule, saying: “The stability rule means that we will bring the current budget into balance, so that we do not borrow to fund day to day spending.
“We will meet this rule in 2030 until that becomes the third year of the forecast.
She added that, from then on, the government will balance the current Budget in the third year of every Budget held annually each autumn.
“That will provide a tougher, tougher constraints on day-to-day spending."
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
