Emergency Budget date unveiled - Economy - News - Moneyfacts


Emergency Budget date unveiled

Emergency Budget date unveiled

Category: Economy

Updated: 17/05/2010
First Published: 17/05/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A new emergency Budget is to be unveiled on the 22 June, the new Chancellor of the Exchequer, George Osborne, has announced.

The new measures will be outlined just 42 days after the collation agreement was signed, meaning the Government has kept its word on delivering a new Budget within 50 days of taking office.

In a speech made this morning, Mr. Osborne confirmed that cuts to the public sector will begin immediately, with £6 billion of savings made from non-front line public services.

He also said that savings would also be made from the departments for health, defence and international development, but that funds would be re-invested into their front lines.

The new Chancellor said such quick moves had been made necessary by a budget deficit that is set to be amongst the largest in the world this year, the largest in the G7 and the largest in the EU.

"That is why this new coalition is founded on an agreement to significantly accelerate the reduction in the deficit, starting this year," he added.

The Budget is expected to include a raft of proposals, including limiting tax credit for middle and high earning families and limiting the reach of the Child Trust Fund

A hike in VAT has also been suggested, although this may be shelved until the economy is on a surer footing.

Low earners will be hoping that the Government will announce plans to phase in a higher £10,000 level of personal allowance that will be exempt from income tax.

In his speech, Mr. Osborne also revealed that a new independent Office for Budget Responsibility is to be founded, which will assess the true state of the UK's finances.

It will be charged with making independent forecasts for the economy and public finances, and will produce fiscal numbers that will direct Government policy in future Budgets.

It is to be headed by Sir Alan Budd, a man described as 'one of the most respected fiscal and macroeconomic experts in our country." He will be joined by two other independent experts Geoffrey Dicks and Graham Parker.

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