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

Publications / Guides

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?

← Back to the collection homepage

Latest / Highlights

News / Assisted dying bill: Special series #10 - Parliament Matters podcast, Episode 89

Having cleared detailed scrutiny in a Public Bill Committee, the Terminally Ill Adults (End of Life) Bill faces its next crucial test when it returns to the House of Commons for Report Stage on 16 May. This stage is often where Private Members' Bills falter. Will opponents of Kim Leadbeater’s proposals to legalise assisted dying win enough support to amend the Bill? Can supporters of the Bill fend off attempts to change it? And could the Bill be lost altogether, because of the procedural hurdles that still stand in its way?

News / Parliament Matters Bulletin: What’s coming up in Parliament this week? 28 April - 2 May 2025

MPs will debate the Football Governance Bill for the first time and consider controversial proposals to give government access to benefit recipients’ bank data in the Public Authorities (Fraud, Error and Recovery) Bill. The Great British Energy Bill faces a further hurdle over modern slavery concerns in solar panel supply chains. Orders on extended VE Day pub hours and banning ‘ninja swords’ will be considered. David Lammy and Shabana Mahmood face committee scrutiny, while Richard Foord seeks to require parliamentary approval for a UK–US trade deal. Mayors Andy Burnham and Kim McGuinness will give evidence on industrial strategy, and Dr Fiona Hill will speak about social mobility and education.

News / Should Parliament roll out the red carpet for Donald Trump? - Parliament Matters podcast, Episode 88

After Parliament’s rare Saturday sitting to pass the Steel Industry (Special Measures) Bill with minimal scrutiny, we explore concerns about rushed legislation and unchecked ministerial powers. The Speaker Sir Lindsay Hoyle faces criticism for allegedly protecting Keir Starmer at PMQs. Meanwhile, as MPs and Peers move to block a possible Trump address to Parliament during his second UK State Visit, we discuss who controls invitations to speak and where on the parliamentary estate.

Submissions / Evidence to the House of Commons Modernisation Committee: Priorities and strategic aims

In response to the Modernisation Committee's call for views on 17 October 2024, we submitted evidence outlining key areas we believe the Committee should prioritise. Our submission recommended a focus on: strengthening legislative scrutiny, with particular emphasis on reforming the delegated legislation system; enhancing financial scrutiny, especially in relation to the Budget and the Estimates; addressing strategic gaps in parliamentary scrutiny; making more effective use of parliamentary time; and reviewing the Standing Orders, language and rituals of the House of Commons.

Briefings / The Assisted Dying Bill: A guide to the Private Member's Bill process

This briefing explains what to watch for during the Second Reading debate of the Terminally Ill Adults (End of Life) Bill on 29 November. It outlines the procedural and legislative issues that will come into play: the role of the Chair in managing the debate and how procedures such as the 'closure' and 'reasoned amendments' work. It looks ahead to the Committee and Report stage procedures that will apply if the Bill progresses beyond Second Reading. It also examines the government's responsibilities, such as providing a money resolution for the Bill and preparing an Impact Assessment, while addressing broader concerns about the adequacy of Private Members’ Bill procedures for scrutinising controversial issues.