Sajid Javid’s post-Brexit Budget set for 11 March 2020
Sajid Javid will deliver the government’s first post-Brexit Budget on 11 March, in what it likely to see a shift in spending away from London and the South East.
Tomorrow morning Javid will give Cabinet colleagues an economic update ahead of his first Treasury questions since Boris Johnson won an 80-seat majority last month.
He is expected to reiterate commitments made during the campaign, including raising the threshold for National Insurance contributions and freezing income tax rates, as well as the pledge to “level up and spread opportunity” with a multi-billion-pound spending spree.
The environment, public services and the cost of living are expected to be prioritised at the Budget, and Javid will also introduce new fiscal rules, as outlined during the election.
The Budget date has been unveiled following a visit by the chancellor to Manchester’s Trafford Park tram line on Monday, underlining the government’s commitment to newly-wooed voters in the North.
Javid said: “People across the country have told us that they want change. We’ve listened and will now deliver.
“With this Budget we will unleash Britain’s potential – uniting our great country, opening a new chapter for our economy and ushering in a decade of renewal.”
The Treasury has already been told to change the formula used in its so-called “green book”, which guides investment decisions on everything from infrastructure to business development.
Currently the model favours investments in areas where the economy is already stronger.
But this has caused an “extreme” productivity gap between the north and south of England, Cambridge University researchers found last year.
The Prime Minister’s senior adviser Dominic Cummings has also criticised the system.
It will be Javid’s first Budget since becoming chancellor last summer, after the one scheduled for November was scrapped because of the election campaign.
A major speech, “outlining his vision for the UK economy”, was also cancelled by Number 10 at the last minute.
The British Chamber of Commerce’s co-executive director Claire Walker said: “Businesses will be looking to the Budget to boost confidence and stimulate growth at a time of significant uncertainty for the UK economy.
“Firms of all sizes need to see a package of fiscal measures to alleviate the burden of high up-front costs and boost investment. The chancellor must outline how he will make good on election promises of a fundamental reform of business rates and we also need to see a moratorium on all new up-front costs for businesses for the duration of this Parliament.
“This is the first opportunity for the new government to demonstrate that it listens to business and is serious about tackling the day-to-day challenges holding firms back.”
Main image: Getty