Pre-Brexit spending round scheduled for 4 September

The Chancellor will present details of the spending round to parliament next week, earlier than expected, setting out departmental day-to-day spending to cover the Brexit period

The financial review will be delivered on Wednesday 4 September in a statement to parliament, Chancellor Sajid Javid has confirmed, as a speech on future finances, scheduled for today, was cancelled at short notice.

The time frame has been shortened as the Prime Minister Boris Johnson has received permission from the Queen to supsend parliament the week commencing Monday 9 September. This means that MPs will be back sitting for only one week after the summer recess.  

Following the conclusion of the traditional party conference season in September, the second session of this parliament will commence with a Queen’s Speech on Monday 14 October, only two weeks before the 31 October Brexit deadline.

In mid-August, the Treasury announced it would carry out an accelerated exercise to ensure departments and devolved administrations had the financial certainty to deliver their plans on public services next year with full plans set to be ready in September.

The fast-tracked spending round will set departmental budgets for 2020/21. As announced earlier this month, a full multi-year spending review is now due to take place in 2020.

The Spending Round will deliver on the Prime Minister’s priorities – including health, schools and the police – while still meeting the existing fiscal rules.

A Treasury spokesperson confirmed that ‘the PM and his team of ministers will be setting out more details on their planned policy agendas over the next few weeks and months. As always, decisions on tax are for the Chancellor to announce at fiscal events’.

The next Budget is scheduled for this autumn although plans for an early election could see the date move.

Capital budgets, used for long-term projects such as infrastructure, are already in place for 2020/21.

Sara White

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