What is the budget?
The Budget is the government's main yearly statement on tax and spending. The Chancellor of the Exchequer announces it in the House of Commons, usually in the autumn. It sets tax rates, allowances and departmental spending. It comes with an independent forecast from the Office for Budget Responsibility.
The Chancellor delivers the Budget speech in the Commons, then publishes a detailed document known as the Red Book. Tax changes need a Finance Bill, which MPs debate and vote on in the months that follow. Some changes take effect on Budget day, but most start at the beginning of the next tax year on 6 April. The Budget statement is followed by several days of Commons debate.
Since 2024 the UK has held one main fiscal event each year, in the autumn. A spring statement updates the forecasts but is not meant to bring big policy changes. The Autumn Budget 2026 is set for Wednesday 28 October 2026. The previous Budget, in November 2025, extended the freeze on income tax thresholds to April 2031. It also announced a new charge on homes worth over £2 million.
The Budget affects almost everyone. It decides how much income tax, National Insurance and VAT people pay. It also decides how much benefits rise and how much schools and hospitals receive. Businesses watch it closely for changes to corporation tax and business rates. Markets watch borrowing plans, because they affect the interest the government pays on its debt. Charities and councils also lobby hard beforehand.
- Sets taxes in the Budget
- Agrees each department's spending
- Manages government borrowing
- Oversees banks and financial regulation
- Sets fiscal rules
Budget: Under £1bn for the department itself, but it decides how about £1.3 trillion of public money is spent. Staff: About 2,000
What it runs or funds
HM Revenue and Customs, UK Debt Management Office, Office for Budget Responsibility (independent), National Savings and Investments, Royal Mint
Did you know? Officially the PM is First Lord of the Treasury, which is why No 10 has that title on its letterbox.
The left tends to see the Budget as a chance to fund public services properly. It often wants more tax to fall on wealth and high incomes.
The right tends to see the Budget as a test of discipline, arguing for lower taxes, tighter spending and less borrowing to support growth.
Britain is split. Now you decide.
In Population Decides you write your own Budget, setting every major tax and spending line and watching the deficit, growth and your approval react.
Play Population Decides freeCommon questions
When is the next UK Budget?
The Autumn Budget 2026 is scheduled for Wednesday 28 October 2026.
Who writes the Budget?
The Chancellor of the Exchequer leads it, working with HM Treasury officials and the Prime Minister.
Does the Budget need a vote?
Yes. MPs vote on Budget resolutions and then on a Finance Bill, which turns the tax changes into law.
What is HM Treasury?
The UK's finance ministry. The Treasury is the UK's finance ministry, controlling spending, taxes and borrowing.
Which minister runs the Treasury day to day?
The Chancellor of the Exchequer. The Chancellor of the Exchequer leads the Treasury.