What is the Budget? The Financial Statement, Budget debate and Finance Bill

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What is the Budget?

The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar

In order to raise income, the Government needs to obtain approval from Parliament for its taxation plans. The Budget is the means by which the House of Commons considers the government’s plans to impose 'charges on the people' and its assessment of the wider state of the economy.

This guide is part of the collection: How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process

The Budget is usually held on a Wednesday, although there is no prohibition on it being held on another day of the week (the Budget of 29 October 2018, for example, was held on a Monday).

If it is held on a Wednesday, the Statement by the Chancellor of the Exchequer follows Prime Minister’s Questions. On any day, it would follow any Urgent Questions, ministerial statements and Points of Order, should there be any. There are no Ten Minute Rule Bill proceedings on Budget day.

The Statement and debate are usually chaired by the principal Deputy Speaker (who is also the Chair of Ways and Means), rather than the Speaker. (There have been occasional exceptions – the Speaker presided in 1968 and 1989.)

The Budget process has four key parliamentary stages:

The Financial Statement

The Chancellor of the Exchequer's statement to the House of Commons consists of two distinct elements:

an update on the state of the economy, and;
an outline of the government's taxation plans.

The Financial Statement and Budget Report (known as the Red Book) are laid before the House of Commons for scrutiny, accompanied by an array of supporting documentation including economic forecasts from the Office of Budget Responsibility , departmental press notices concerning the tax measures, policy costings, and data sources.

The Budget debate

Members of Parliament (MPs) consider the Financial Statement in a wide-ranging debate lasting four days. The debate is organised into topics, with each day dedicated to a particular policy theme or themes (for example, health, education, housing).

The Budget resolutions (‘Ways and Means’ resolutions)

Each individual tax or duty must be agreed in the form of ‘Ways and Means’ resolutions. These are put to the House of Commons as motions, which become resolutions once agreed, in the normal way.

The Finance Bill

Once the Budget resolutions have been agreed, these ‘charging’ or ‘founding’ resolutions form the basis of the Finance Bill. The Finance Bill cannot be introduced until the resolutions are agreed.

Last updated and citation

Last updated

08:06 am, 14 March 2023

Cite this page

Hansard Society (2022), How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process, (Hansard Society: London)

In this collection

The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar

What is the budget?

Tulip Siddique MP in the House of Commons. ©UK Parliament

How do MPs scrutinise the Budget?

Tellers in the House of Commons Chamber. ©UK Parliament

How do MPs approve the Budget?

Shadow Chancellor Rachel Reeve MP speaking in the House of Commons Chamber. ©UK Parliament

Can MPs amend the Budget?

What is the Finance Bill?

Rishi Sunak at the Despatch Box during the Budget. ©UK Parliament

What principles and rules govern the Budget process?

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