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Budget date revealed by chancellor Sajid Javid

Budget date revealed by chancellor Sajid Javid
Business
The Budget has been announced for 6 November, with Chancellor Sajid Javid saying it will be "the first budget after leaving the EU".

"This is the right and responsible thing to do - we must get on with governing," he said.

It will be Mr Javid s first Budget since he became chancellor in July.

The Budget date is normally announced in September. Mr Javid said the Budget would detail the government s plans to "shape the economy for the future".

BBC assistant political editor Norman Smith said that in the event of a no-deal Brexit, the full Budget would be delayed and the 6 November announcement would be "a simple economic statement".

Understand if there is No deal, then Budget will be delayed for several weeks - and Nov 6 will just be an economic statement

Report

The OBR said it was able to prepare some information in advance, but that its forecasts would be based on the UK securing a Brexit deal.

It said since the EU referendum, its forecasts had been based on "broad brush assumptions for a relatively smooth [Brexit] outcome". The OBR said that approach would continue "in the absence of any specific information".

Shadow chancellor John McDonnell said he expected the Budget to be "an electioneering stunt rather than a Budget to rebuild our stalling economy and reset the direction of our country".

The Budget is the government s yearly announcement on its plans for tax and spending for the coming financial year, which starts in April 2020.

There are expectations that the chancellor could relax the government s borrowing rules to give him more spending power.

The rules state that borrowing should remain below 2% of national income, at about £46bn.

Mr Javid has already suggested he is prepared to borrow more to take advantage of current record-low borrowing costs, and has previously said he plans to review the borrowing rules.

In August s spending review, Mr Javid declared the government had "turned the page on austerity, announcing its .

Naming the date of a Budget is a sign from the chancellor to communicate that at least some Treasury business continues as normal.

But there is nothing routine about a government yet to win a vote in the Commons, trying to pass a Budget.

In theory there will be measures to boost infrastructure, spending and some taxes.

But if there is a no-deal Brexit, the Treasury will instead turn its focus on giving immediate support to the economy, businesses and households.

So, in that case, there would be a delay to the Budget.

In a no-deal scenario, there might be some extra scope for a cut to VAT which could be part of a general fiscal stimulus package for the economy.

The Treasury will also reveal its new self-imposed constraints on borrowing - "fiscal rules"- designed to help create more space for spending and tax cuts.

And if there is a Budget a week after a Brexit deal has passed the Commons, there could be a chance that the government could get support for its fiscal measures too.
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