Budget 2020 to remain on 11 March, new Chancellor Rishi Sunak confirms
Written by News on 18/02/2020
New Chancellor Rishi Sunak has confirmed the budget will be delivered on 11 March.
It had been speculated the date of the fiscal announcement could be moved following the shock resignation of Mr Sunak’s predecessor Sajid Javid last week.
But, in a tweet, Mr Sunak revealed the budget would be delivered on its original date.
He said: “Cracking on with preparations for my first budget on 11 March.
“It will deliver on the promises we made to the British people – levelling up and unleashing the country’s potential.”
Mr Javid’s surprise departure, following a row with Prime Minister Boris Johnson over his advisers, meant he left the Treasury without ever having delivered a budget.
He said he had “no option” but to resign because Mr Johnson attached conditions to him staying in the role which “no self-respecting minister would accept”.
The prime minister had demanded the chancellor sack all of his special advisers following turbulence between Number 10 and the Treasury in recent weeks.
In the hours after Mr Javid’s resignation, Downing Street confirmed a new joint team of special advisers was being established in Number 10 and Number 11 to advise Mr Johnson and his new chancellor.
The Times reported on Tuesday that the prime minister and Mr Sunak will meet for detailed budget talks for the first time on Wednesday.
They are considering cutting pension tax relief for higher earners and relaxing spending rules, according to the newspaper.
In the Conservatives’ general election manifesto, the party promised they would stick to a number of fiscal rules in government.
This included not borrowing to fund day-to-day spending, ensuring public sector net investment averages no more than 3% of GDP, and to reassess spending if debt interest reaches 6% of revenue.
The Tories also promised that debt would be lower at the end of this parliament, in 2024.
Mr Javid drew up the rules but – following the Conservatives’ resounding election victory – it has been reported Mr Johnson is looking to tear up the restraints in order to put more cash into social care and the NHS, as well as to boost infrastructure spending.
In his resignation letter, Mr Javid told the prime minister: “I would urge you to ensure the Treasury as an institution retains as much credibility as possible.
“The team there has impressed me with the energy and intellect they have brought to delivering the shifts in policy that I have led.”
(c) Sky News 2020: Budget 2020 to remain on 11 March, new Chancellor Rishi Sunak confirms
