Sajid Javid

Brexit: 'This is a good deal' says chancellor
The chancellor praises the deal brokered between the UK and EU, and urges parliamentarians to back it.

Nothing routine about the Budget

Faisal Islam

BBC Economics Editor

Naming the date of a Budget is a sign from the chancellor to communicate that at least some Treasury business continues as normal.

But there is nothing routine about a government yet to win a vote in the Commons, trying to pass a Budget.

In theory there will be measures to boost infrastructure, spending and some taxes.

But if there is a no-deal Brexit, the Treasury will instead turn its focus on giving immediate support to the economy, businesses and households.

So, in that case, there would be a delay to the Budget.

In a no-deal scenario, there might be some extra scope for a cut to VAT which could be part of a general fiscal stimulus package for the economy.

Whatever happens, a new set of budget numbers and economic forecasts is being prepared by the government's independent financial watchdog, the Office for Budget Responsibility. The Bank of England too will be preparing its new forecasts for the 7 November Inflation Report, and any implications for interest rates.

The Treasury will also reveal its new self-imposed constraints on borrowing - "fiscal rules"- designed to help create more space for spending and tax cuts.

And if there is a Budget a week after a Brexit deal has passed the Commons, there could be a chance that the government could get support for its fiscal measures too.

Or rather it could be part of the pathway to a general election next month.

'Electioneering stunt' says Labour

John McDonnell
Getty Images

Shadow Chancellor John McDonnell has responded to the announcement about the 6 November budget.

"We expect more of the same. An electioneering stunt rather than a budget to rebuild our stalling economy and reset the direction of our country."

Chance for pre-election sweetners

BBC economics correspondent tweets

BreakingBudget date: 6 November

red case
PA Media

Budget date is set for 6 November.

Chancellor Sajid Javid said: “This will be the first budget after leaving the EU. I will be setting out our plan to shape the economy for the future and triggering the start of our infrastructure revolution.

“This is the right and responsible thing to do – we must get on with governing.”