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

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".^[4][5][6]

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.^[1]

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.^[1]

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).^[1]

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,

1945

Hugh Dalton removed a proposal to change the tax on fuel oil.

1951

Hugh Gaitskell responded to Cabinet pressure and abandoned his plans for a differential fuel tax.

1962

Cabinet persuaded Selwyn Lloyd to announce the early abolition of the tax on home owner-occupiers.

1981

The 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".)

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".[6] 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.^[9]

It is also a parliamentary tradition that whilst 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.^[10][11][12]

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".^[2]

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'".^[4]

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".^[2]

Evening broadcast

Between 1952 and 2011, the Chancellor would, in the evening of Budget Day, make a television

This tradition was discontinued, starting with the 2012 budget, as part of wider changes to the scheduling of party political broadcasts.[14] 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.^[15]

List of Budget broadcasts

Aftermath

The

In the Netherlands, the presentation of the budget is made on the same day as when the monarch gives the speech from the throne; this is held on the third Tuesday of September, which is called Prinsjesdag (Little Princes' Day). After the monarch gives the speech from the throne, announcing the government's agenda for the coming year, the National Budget and the Budget Memorandum are presented later that day to the House of Representatives and are brought in a ceremonial briefcase by the minister of finance.^[171] This briefcase tradition was introduced in 1947 by Piet Lieftinck in imitation of the British tradition.^[172]

Sweden

Budgetpromenaden, or the budget walk, is a traditional biannual procession when the Swedish finance minister walk with a copy of the budget bill from the Ministry of Finance to the Riksdag (the parliament), a distance of 400 metres (440 yd).

Hong Kong