Budget 2021: Ben Shephard challenges Rishi Sunak on GMB
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Chancellor Rushi Sunak introduced the 2021 budget to MPs in the House of Commons yesterday, to whom he outlined where a new round of Government funding would land in the coming months. His policies will seek to take the UK through the final months of lockdown and beyond and included a selection of ambitious new policies. He has set new limits on Universal Credit increases and furlough to continue into late 2020, and people will want to know what happens beyond this point.
How many budgets are there a year?
The budget is an annual announcement made by the Chancellor which outlines how the Government intends to allocate public funds.
Budgets tend to stick to the once-a-year rule, but there are exceptions.
Occasionally, chancellors will deliver two, as was the case in 2020.
READ MORE: What does budget 2021 mean for my savings?
Budget 2021: How many budgets are there a year? When is the next one? (Image: GETTY)
Budget 2021: Rishi Sunak was meant to deliver two budgets last year, taking one from Sajid JAvid (Image: GETTY)
The previous Chancellor, Sajid Javid, postponed the 2019 budget as Parliament prepared for recess.
At the time, he said: The Budget is not going ahead because we are planning now to dissolve parliament on the 6th, so clearly you cant have a Budget on the same day.
Mr Sunak, who had taken up Mr Javids mantle in February 2020, delivered it in March the same year instead.
He was on course to deliver another in the autumn, but the Covid pandemic forced him to postpone again.
Budget 2021: A summary of the 2021 budget promises (Image: EXPRESS)
Although the only budget of 2020, financial experts have said it acts like two.
Paul Johnson, an economist with the Institute for Fiscal Studies (IFS), told the BBC Mr Sunaks cuts could soon bare their teeth.
He said: This was, of course, a tale of two Budgets.
By the end of the forecast period, we are looking at a fiscal tightening of over £30bn relative to previous plans.
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Budget 2021: Rishi Sunaks budget is the first and only of 2021 (Image: GETTY)
Mr Johnson added incoming cuts could see Mr Sunak become scrooge Sunak.
He said the Chancellor would raise taxes to the tune of £50billion.
Mr Johnson continued: Take account of the cuts to planned spending announced in the autumn and Santa Sunak, purveyor of billions today, looks more like Scrooge Sunak, cutting spending and raising taxes to the tune of nearly £50 billion relative to his pre-pandemic plans of March 2020.
The rules set by the budget arent immovable, as Mr Sunak may choose to adjust some of his policy in the future.
When is the next budget?
The next budget will likely come in 2022, provided there isnt a need to postpone it.
The Chancellor, whether still Mr Sunak or a successor, will deliver their new targets either in the spring or autumn.
Spring budgets take place before the end of the financial year, which is in April.