Budget Day
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.This swiftness is justified on the grounds of secrecy. It is considered essential the budget details not leak before the Chancellor's public speech. 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:
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, gin and tonic, brandy and water, spritzer and sherry and beaten egg. In the last 25 years, this tradition has fallen away, with Gordon Brown and subsequent chancellors opting for water.
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, " 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
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 a Financial Statement to the Dáil, Budgetary Measures, Budget Statistics and Tables and various financial resolutions.The day itself is very similar to Budget Day in the United Kingdom. In the early afternoon, the Minister for Finance will normally hold a photocall in the car park of Leinster House, with the traditional budget briefcase. At 15:45, the Minister for Finance presents the budget speech in Dáil Éireann. The speech, which lasts approximately one hour, is normally carried live on Raidió Teilifís Éireann radio and television. The speech contains the main taxation and other fiscal measures to be employed over the next calendar year. The Opposition Front Bench spokesperson on Finance normally replies to the Budget speech first, followed by the spokespersons on finance of other opposition parties. A vote on supply normally takes place before midnight on the night of the budget, with changes to excise duties on alcohol, tobacco, and petrol taking place from midnight. Most other measures are spelt out in greater detail in the Finance Bill which is introduced in the Oireachtas following the budget, eventually becoming the Finance Act.