THE Budget is when the government announces plans for how it will spend money on things like the NHS and public services.
Chancellor Rishi Sunak who makes the Budget speech in the House of Commons, is also expected to reveal plans for how to cover the bill.
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The financial statement covers how the economy is doing and proposes changes to taxes, which can affect your finances.
Here we explain how the Budget works, when the next announcement will be and what could be in it.
What date is the next Budget in 2021?
Usually there is a Budget once a year but there was a Budget back in March and there is another coming up too.
Mr Sunak delivered a Budget during the lockdown at the start of the year after it was delayed from September 2020 because of the second wave of the pandemic.
The next Budget date is set for Wednesday, October 27.
The date of the next Budget was announced on September 7 – the same day that tax hikes were announced.
The next Budget is scheduled to take place after Prime Minister’s Questions (PMQs).
PMQs usually lasts around half an hour so the Budget usually starts just after 12.30pm.
It may be later if PMQs overruns and time is often given to allow MPs to enter the House of Commons chambers.
There is also a short break as the Budget is traditionally chaired by the principal Deputy Speaker rather than the Speaker of the House of Commons.
This means House of Commons Speaker Sir Lindsay Hoyle will have to swap places with his deputy Dame Eleanor Laing.
The statement usually lasts around an hour and MPs should not intervene on the Chancellor.
What will be in the next Budget 2021?
With tax hikes already announced there is speculation that the biggest announcements are out of the way already.
Such increases for taxpayers are usually announced during Budget speeches, rather than in separate announcements.
That means that there could be fewer major changes affecting your finances coming up, because they’ve already been announced.
But – and specifically these days with the pandemic – that’s not a certainty.
The Budget will take place just weeks after major financial support schemes come to an end, like furlough and the Universal Credit uplift.
And the country is also heading towards winter when Covid cases could spike again, with the government already setting out “Plan B” that could see the return of work from home orders and mandatory face masks.
There is also still a big bill to pay for the Covid support the country has seen.
What will it mean for your money?
The impact on your wallet will depend on what exactly is announced in the budget – and that won’t be revealed until the day.
Keep an eye out for tax increases as these are the kind of policy changes that are announced during the budget.
Some taxes usually rise annually however, such as rates of duty on alcohol and tobacco.
Changes to alcohol and tobacco taxes usually come into effect on Budget day or soon after.
The Chancellor could also increase taxes like Capital Gains, which is paid on the sale of assets like shares or a second property, and inheritances.
But nothing will be confirmed until Budget day itself.
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