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Getty Images<\/span><\/div>\n<\/div>\n<\/figure>\nChancellor Rachel Reeves will deliver her first Budget on Wednesday 30 October.<\/p>\n
In September, she told the BBC it will involve “difficult decisions” on tax, spending and benefits. <\/p>\n<\/div>\n
What is the Budget?<\/h2>\n<\/p>\n\nEach year, the chancellor of the exchequer – who is in charge of the government’s finances – makes a Budget statement to MPs in the House of Commons<\/a>.<\/p>\nThe speech outlines the government’s plans for raising or lowering taxes. It also includes big decisions about spending on health, schools, police and other public services.<\/p>\n
The Treasury publishes a report alongside the Budget, which gives more details about the measures announced, and what they will cost.<\/p>\n
The independent Office for Budget Responsibility (OBR) – which monitors government spending – also produces an independent assessment of the health of the UK economy. <\/p>\n
After the statement, MPs spend several days debating the plans. <\/p>\n
They are then asked to approve the tax proposals, and the government introduces a Finance Bill to turn the Budget announcements into law.<\/p>\n
The previous Conservative Chancellor, Jeremy Hunt, delivered the last Budget on March 2024<\/a>, before the general election.<\/p>\nAfter a change of government, the new chancellor holds another Budget to set out their financial policies for the year ahead.<\/p>\n<\/div>\n
When is the autumn Budget?<\/h2>\n<\/p>\n\nThe 2024 autumn Budget is on Wednesday, 30 October.<\/p>\n
The Budget speech usually starts at about 12:30 UK time and lasts about an hour. It will be broadcast live on the BBC iPlayer and on the BBC news website.<\/p>\n
The current leader of the opposition, Conservative party leader Rishi Sunak, will give a speech responding to the Budget as soon as Reeves sits down.<\/p>\n<\/div>\n
How is the UK economy doing?<\/h2>\n<\/p>\n\nThe Labour government has said boosting the economy is one of its key priorities.<\/p>\n
A growing economy usually means people spend more, extra jobs are created, more tax is paid and workers get better pay rises.<\/p>\n
Following a brief recession at the end of 2023, the UK grew solidly during the first six months of 2024, and recorded the fastest growth of all the G7 countries.<\/p>\n
However, the UK economy stalled in June and July.<\/p>\n
When Labour took power, Ms Reeves said it had “inherited the worst set of circumstances since the second world war” regarding government finances – something the Conservatives deny.<\/p>\n
She said she was facing a \u00a322bn “black hole”, and warned that the government would have to raise some taxes as a result<\/a>.<\/p>\nThis gap is due to rules the government has chosen to follow over how much money it can borrow over the next five years.<\/p>\n<\/div>\n
What might be in the Budget?<\/h2>\n<\/p>\n\nThe government has already ruled out raising VAT (value added tax), income tax and National Insurance.<\/p>\n
But it could choose to increase other taxes.<\/p>\n
Capital gains tax (CGT)<\/b><\/p>\n
CGT<\/a> is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.<\/p>\nIts paid by individuals and some business owners, and the rates vary depending on how much income tax you pay.<\/p>\n
Inheritance tax (IHT)<\/b>,<\/p>\n
IHT<\/a>, which is currently 40%, is usually paid on the value of a deceased person’s assets above a threshold of \u00a3325,000.<\/p>\nFuel duty<\/b><\/p>\n
Fuel duty has not risen in more than a decade<\/a>. It was frozen between 2012 and 2022, and cut by 5p in March 2022 when pump prices surged following Russia’s invasion of Ukraine.<\/p>\nHowever, some motoring groups argue the cut was never passed on to motorists and the RAC says<\/a> it could be reversed.<\/p>\nCouncil tax<\/b><\/p>\n
The single-person council tax discount<\/a> reduces bills by 25%. Some reports have suggested the government is considering scrapping it<\/a>.<\/p>\nPension tax relief<\/b><\/p>\n
Each year, the chancellor of the exchequer – who is in charge of the government’s finances – makes a Budget statement to MPs in the House of Commons<\/a>.<\/p>\n The speech outlines the government’s plans for raising or lowering taxes. It also includes big decisions about spending on health, schools, police and other public services.<\/p>\n The Treasury publishes a report alongside the Budget, which gives more details about the measures announced, and what they will cost.<\/p>\n The independent Office for Budget Responsibility (OBR) – which monitors government spending – also produces an independent assessment of the health of the UK economy. <\/p>\n After the statement, MPs spend several days debating the plans. <\/p>\n They are then asked to approve the tax proposals, and the government introduces a Finance Bill to turn the Budget announcements into law.<\/p>\n The previous Conservative Chancellor, Jeremy Hunt, delivered the last Budget on March 2024<\/a>, before the general election.<\/p>\n After a change of government, the new chancellor holds another Budget to set out their financial policies for the year ahead.<\/p>\n<\/div>\n The 2024 autumn Budget is on Wednesday, 30 October.<\/p>\n The Budget speech usually starts at about 12:30 UK time and lasts about an hour. It will be broadcast live on the BBC iPlayer and on the BBC news website.<\/p>\n The current leader of the opposition, Conservative party leader Rishi Sunak, will give a speech responding to the Budget as soon as Reeves sits down.<\/p>\n<\/div>\n The Labour government has said boosting the economy is one of its key priorities.<\/p>\n A growing economy usually means people spend more, extra jobs are created, more tax is paid and workers get better pay rises.<\/p>\n Following a brief recession at the end of 2023, the UK grew solidly during the first six months of 2024, and recorded the fastest growth of all the G7 countries.<\/p>\n However, the UK economy stalled in June and July.<\/p>\n When Labour took power, Ms Reeves said it had “inherited the worst set of circumstances since the second world war” regarding government finances – something the Conservatives deny.<\/p>\n She said she was facing a \u00a322bn “black hole”, and warned that the government would have to raise some taxes as a result<\/a>.<\/p>\n This gap is due to rules the government has chosen to follow over how much money it can borrow over the next five years.<\/p>\n<\/div>\n The government has already ruled out raising VAT (value added tax), income tax and National Insurance.<\/p>\n But it could choose to increase other taxes.<\/p>\n Capital gains tax (CGT)<\/b><\/p>\n CGT<\/a> is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.<\/p>\n Its paid by individuals and some business owners, and the rates vary depending on how much income tax you pay.<\/p>\n Inheritance tax (IHT)<\/b>,<\/p>\n IHT<\/a>, which is currently 40%, is usually paid on the value of a deceased person’s assets above a threshold of \u00a3325,000.<\/p>\n Fuel duty<\/b><\/p>\n Fuel duty has not risen in more than a decade<\/a>. It was frozen between 2012 and 2022, and cut by 5p in March 2022 when pump prices surged following Russia’s invasion of Ukraine.<\/p>\n However, some motoring groups argue the cut was never passed on to motorists and the RAC says<\/a> it could be reversed.<\/p>\n Council tax<\/b><\/p>\n The single-person council tax discount<\/a> reduces bills by 25%. Some reports have suggested the government is considering scrapping it<\/a>.<\/p>\n Pension tax relief<\/b><\/p>\nWhen is the autumn Budget?<\/h2>\n<\/p>\n
How is the UK economy doing?<\/h2>\n<\/p>\n
What might be in the Budget?<\/h2>\n<\/p>\n