The UK Budget Explained And Why Is Today Important?

There is no arguing that budgeting is important, but doing so is not always so easy. Though it gets a little more complicated when you’re managing funds for the whole country.

The guy above is George Osborne. He is Chancellor of the Exchequer – which is a posh way of saying he’s in charge of the country’s money.

 

The UK Budget: Explained

UK Public Services paid by Taxes

Will we see further cuts to Public Services?

The Budget (it’s important so it gets a capital B) is a breakdown of where the money from Her Majesty’s Treasury is spent.

Money is collected through tax by Her Majesty’s Revenues and Customs and is spent on public services – such as roads, hospitals, education.

The Budget is usually released in March – just before the start of a new financial year, which starts in April (we’ll leave that one for another time).

 

 

What’s Going On Today?

At 12.30PM today, Osborne will announce the new budget to Parliament, outlining the state of the British economy and the changes the new Conservative government will be making. It will be a chance to see if he sticks with his earlier promises made before the election.

If you’re a big politics fan you can watch on BBC Parliament (a whole TV channel devoted to British politics .. who knew?!) from 12PM.

What Does This Mean?

This is an emergency budget. The Tories weren’t expected to win a majority so the previous budget was a compromise with what they wanted to do, and what they thought they’d be allowed to do with their pals in coalition.

Now we have a Conservative majority George Osborne can pretty much do what he wants.

Watch out for phrases like Long Term Economic Plan (we have a plan) and Stable Growth (Progress slower than expected).

Read our breakdown of the previous budget: The Budget: Decoded