Budget Day is the day that a government presents its budget to a legislature for approval, in a ceremonial fashion. It only exists in some countries of the world.
United Kingdom
In the United Kingdom, Budget Day is the day that the Chancellor of the Exchequer delivers the annual budget, first privately to the Cabinet and then publicly in a speech to the House of Commons. It is always aligned with the fiscal year, which itself in the UK is still aligned with the Julian Calendar. Budget Day formerly occurred on a Wednesday in March, before the start of the new fiscal year, although in the early 20th century it was delivered in April, after the start of the fiscal year. However, former chancellor Philip Hammond announced in the 2016 Autumn Statement that the budget would, from 2018, be moved to October as an 'autumn budget', and the statement moved to March, but as a less important convention. The last time the budget was held in the autumn to this timing came from 1993 to 1996, when Budget Day was also shifted from spring to autumn.
Chancellors have had varying opinions on Budget Day. Nigel Lawson wrote, in his memoirs, that it is "best described as an enjoyable ordeal". Harold Macmillan, in explaining his surprise at being appointed Chancellor, said that he thought Budget Day to be "rather like a school Speech Day: a bit of a bore, but there it is".
Preparation The Chancellor, Treasury ministers, and officials will have been working on the Budget some time in advance of Budget Day. Geoffrey Howe initiated the tradition of a weekend meeting, for all Treasury ministers and officials, outside London and some time in advance of Budget Day, for discussing the Budget. This meeting is now a customary part of the annual Budget preparations.
Presentation to the monarch The monarch is the first person to be told of the Budget. Queen Elizabeth II customarily invited the Chancellor to dinner the day before Budget Day, where she was given an outline of the Budget.
Presentation to the Cabinet
The Budget is presented to the Cabinet before being presented to Parliament. Formally, the Cabinet has power to amend the Budget. In practice, however, this is made impossible by the fact that the Budget Cabinet meets on the very morning of Budget Day itself, far too late for any but very minor changes to be effected. The Budget is presented to the Cabinet largely as a fait accompli by the Chancellor, the various junior Treasury ministers, and the Prime Minister (in the role of the First Lord of the Treasury).
This swiftness is justified on the grounds of secrecy. It is considered essential the budget details not leak before the Chancellor's public speech. (In 1936, James Henry Thomas famously leaked Budget details after the Budget Cabinet, which at the time was being held five days before Budget Day, which had been until that point the traditional period between the Budget Cabinet and Budget Day itself.) Little objection has apparently been raised by the Cabinet to this. The only times that the Budget Cabinet has raised objections causing last-minute amendment to the Budget have been: 1945Hugh Dalton removed a proposal to change the tax on fuel oil. 1951Hugh Gaitskell responded to Cabinet pressure and abandoned his plans for a differential fuel tax. 1962Cabinet persuaded Selwyn Lloyd to announce the early abolition of the tax on home owner-occupiers. 1981The so-called "wets" in the Cabinet persuaded Geoffrey Howe to increase the state pension in line with inflation, which he had not wanted to do. (Margaret Thatcher recorded in her memoirs that "[t]he dissenters in the Cabinet ... had been stunned by the budget when they learnt its contents".)
The Chancellor's Speech and debate The Chancellor's Speech in the House is given immediately after what is usually a somewhat lacklustre Prime Minister's Question Time, it being largely overshadowed by what is seen as the main parliamentary event of the day, now usually around 12:30 but previously about 15:30. Nigel Lawson reports that after the press photo-call at 15:15, where like all chancellors he would hold the red dispatch box, purportedly containing the budget speech, aloft; he used to spend time in his room, just behind the Speaker's chair, collecting his thoughts, before entering the house at 15:25, usually to the sound of "a roar from the Government benches". The debate is customarily presided over by the Chairman of Ways and Means instead of the Speaker.
It has varied in length over the years. Macmillan remarked that he "would try not to prolong the agony", and once opined of the speech that he did not think it "necessary to start with the usual long review of the events of the last financial year". The longest continuous budget speech was delivered by William Ewart Gladstone on 18 April 1853 and lasted 4 hours and 45 minutes. The shortest was given by Benjamin Disraeli in 1867 and lasted 45 minutes.
It is also a parliamentary tradition that while making the Budget Speech the Chancellor may drink whatever they wish, including alcohol which is otherwise forbidden. Past chancellors have opted for whisky (Kenneth Clarke), gin and tonic (Geoffrey Howe), brandy and water (Benjamin Disraeli), spritzer (Nigel Lawson) and sherry and beaten egg (William Ewart Gladstone). In the last 25 years, this tradition has fallen away, with Gordon Brown and subsequent chancellors opting for water.Frequently Asked Questions: The Budget UK Parliament
The speech is followed by a debate, which can last for several days. In theory, the report and the financial proposals that the Chancellor sets out in the speech are immediately considered and debated by the House, with the Chancellor in attendance to respond to arguments and, occasionally, to amend proposals. Young reports one Member of Parliament observing that Chancellors customarily "keep up their sleeves one or two million pounds which they propose to give away in concessions during the course of the Finance Bill debates".
In practice, practical concerns dictate otherwise. Nigel Lawson reports, "[as] soon as MPs realise that the tax announcements are over they dash out of the Chamber to get their copies of the Financial Statement and Budget Report – the 'Red Book'".
Similarly, there is a rush by the news services to report Budget items. Young observed in the 1960s that newspapers were "on the street, within minutes it seemed, bringing the glad tidings: TUPPENCE OFF BEER. INCOME TAX DOWN.". Since Parliament has been televised, TV news services have broadcast the Chancellor's speech live, as a "Budget special".
Evening broadcast Between 1952 and 2011, the Chancellor would, in the evening of Budget Day, make a television party political broadcast about the budget. Similar broadcasts were made, in response, by representatives of the major Opposition parties. All broadcasts were arranged through the normal parliamentary processes for arranging party election broadcasts.
This tradition was discontinued, starting with the 2012 budget, as part of wider changes to the scheduling of party political broadcasts. The BBC defended its decision, saying that they originated from a time where filming the Budget Statement from inside the House of Commons was not possible, and the public would be able to access the information from various other outlets.
List of Budget broadcasts
+ 1950sBudgetDateChancellorPartyDateShadow ChancellorPartyRef 195316 AprilR. A. ButlerConservative17 April Hugh Gaitskell Labour 19548 April9 April 195521 April 22 April 195618 AprilHarold Macmillan19 April Harold Wilson 19579 AprilPeter Thorneycroft10 April 195815 April Derick Heathcoat-Amory16 April 19597 April 8 April
+ 1960sBudgetDateChancellorPartyDateShadow ChancellorPartyRef 19604 AprilDerick Heathcoat-AmoryConservative5 April Harold WilsonLabour 196117 April Selwyn Lloyd18 April 19629 April 10 April James Callaghan 19633 April Reginald Maudling4 April 196414 April15 April 19656 April James CallaghanLabour7 April Edward HeathConservative 19663 May 4 May Ian Macleod 196711 April 12 April 196819 March Roy Jenkins20 March 196915 April 16 April
+ 1970sBudgetDateChancellorPartyDateShadow ChancellorPartyRef 197014 AprilRoy Jenkins Labour15 AprilIan Macleod Conservative 197130 March Anthony BarberConservative31 March Roy JenkinsLabour 197221 March 22 March 19736 March 7 March Denis Healey Mar 197426 March Denis HealeyLabour27 March Robert Carr Conservative Nov 197412 November 13 November 197515 April 16 April Geoffrey Howe 19766 April 7 April 197729 March 30 March 197811 April 12 April Apr 19793 April 4 April Jun 197912 June Geoffrey Howe Conservative13 JuneDenis Healey Labour
+ 1980sBudgetDateChancellorPartyDateShadow ChancellorPartyRef 198026 March Geoffrey HoweConservative27 MarchDenis HealeyLabour 198110 March11 March Peter Shore 19829 March 10 March 198315 March16 MarchBudgetDateChancellorPartyDateShadow ChancellorPartyDateSpokespersonPartyRef 198413 March Nigel LawsonConservative14 March Roy HattersleyLabour15 MarchRoy JenkinsSDP-Liberal Alliance 198519 March20 March21 March David Steel 198618 March19 March20 March Roy Jenkins 198717 March 18 March19 March 198815 March16 March John Smith17 March Alan Beith 198914 March 15 March 16 MarchSocial and Liberal Democrats
+ 1990sBudgetDateChancellorPartyDateShadow ChancellorPartyDateSpokespersonPartyRef 199020 MarchJohn MajorConservative21 March John SmithLabour22 March Alan BeithLiberal Democrats 199119 MarchNorman Lamont20 March21 March 199210 March11 March12 March Mar 199316 March 17 March Gordon Brown18 March Nov 199330 November Kenneth Clarke1 December2 December 199429 November 30 November1 December Malcolm Bruce 199528 November29 November30 November 199626 November27 November 28 November 19972 July Gordon BrownLabour3 JulyMichael HeseltineConservative4 July 199817 March18 March Peter Lilley19 March 19999 March 10 March Francis Maude11 March
+ 2000sBudgetDateChancellorPartyDateShadow ChancellorPartyDateSpokespersonPartyRef 200021 March Gordon BrownLabour22 March Michael PortilloConservative23 March Matthew TaylorLiberal Democrats 20017 March8 March9 March 200217 April18 AprilMichael Howard19 April 20039 April 10 April11 April 200417 March18 MarchOliver Letwin19 MarchVince Cable 200516 March17 March18 March 200622 March23 MarchGeorge Osborne 24 March 200721 March22 March23 March 200812 MarchAlistair Darling13 March14 March 200922 April 23 April 24 April
+ 2010sBudgetDateChancellorPartyDateShadow ChancellorPartyDateSpokespersonPartyRef March 201024 March Alistair DarlingLabour25 March George OsborneConservative26 March Vince CableLiberal Democrats June 201022 June George OsborneConservative23 June Alistair DarlingLabourThe Liberal Democrats served in the coalition government, and did not broadcast a response to the budget during their time in office. 201123 March23 MarchEd Balls
Aftermath The Finance Bill proper is only itself presented to Parliament some time after Budget Day, and is debated for days or even weeks afterwards. It is common for the bill to be passed, becoming the Finance Act, some time in late July. The Act back-dates its provisions, so that they take effect either from Budget Day itself or from the start of the fiscal year.
Ireland In Ireland, Budget Day is the annual statement to the Dáil by the Minister for Finance, made in the first week of December. It sets out the budgetary targets for the following year and consists of (i) a Financial Statement to the Dáil, (ii) Budgetary Measures (a list of budgetary changes detailing the cost/yield of same), (iii) Budget Statistics and Tables and (iv) various financial resolutions.