The 2018 United Kingdom budget was delivered by

Philip Hammond Philip Hammond, Baron Hammond of Runnymede (born 4 December 1955) is a British politician and life peer who served as Chancellor of the Exchequer from 2016 to 2019, Foreign Secretary from 2014 to 2016, and Defence Secretary from 2011 to 2014. ...

, the

Chancellor of the Exchequer The chancellor of the Exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and head of His Majesty's Treasury. As one of the four Great Offices of State, the Chancellor is ...

, to the

House of Commons The House of Commons is the name for the elected lower house of the bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of parliament. ...

on Monday, 29 October 2018. It was Hammond's third as Chancellor of the Exchequer since being appointed to the role in July 2016, and his last before being replaced by

Sajid Javid Sajid Javid (; born 5 December 1969) is a British politician who served as Secretary of State for Health and Social Care from June 2021 to July 2022, having previously served as Home Secretary from 2018 to 2019 and Chancellor of the Exchequer f ...

by means of Boris Johnson's cabinet reshuffle upon becoming

prime minister A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is not ...

in July 2019. Following the budget in March 2017 the government moved the annual budget to the Autumn, with the following budget held on 22 November of the same year. On 26 September 2018, Hammond announced that the 2018 budget would be held earlier, in October, so as to avoid clashing with the final stage of Brexit negotiations. On 28 October he suggested that a second budget would be needed in the event of a failure to negotiate a Brexit deal, since the scenario would require a "different response", with a need for "fiscal buffers" to provide support for the economy. Delivering the budget, Hammond said that the era of

austerity Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spend ...

was "finally coming to an end". In response to pressure from Conservative MPs, the Chancellor announced an increase in

Universal Credit Universal Credit is a United Kingdom social security payment. It is means-tested and is replacing and combining six benefits for working-age households with a low income: income-related Employment and Support Allowance, income-based Jobseeker's ...

for households with children, and people with disabilities, partially reversing reductions announced in 2015. The post-tax work allowances will increase by £1,000 per year, representing an extra £630 of income for about 2.4 million households in employment, ultimately at a cost of about £1.7 billion per year. Extra transitional support for claimants being moved to Universal Credit was also announced. Hammond announced that a fifty pence piece would be created to mark the UK's exit from the European Union. Paul Johnson of the

Institute for Fiscal Studies The Institute for Fiscal Studies (IFS) is an economic research institute based in London, United Kingdom, which specialises in UK taxation and public policy. It produces both academic and policy-related findings. The institute's aim is to "a ...

said that the budget did not end

. “Many public services are going to feel squeezed for some time to come. Cuts are not about to be reversed,” Johnson also said, “If I were a prison governor, a local authority chief executive or a headteacher, I would struggle to find much to celebrate in the budget. I would be preparing for more difficult years ahead.” The IFS maintains that "Total spending outside protected government departments is essentially flat, while it will fall on a per capita basis." The

Resolution Foundation The Resolution Foundation is an independent British think tank established in 2005. Its stated aim is to improve the standard of living of low- and middle-income families. Appointments In June 2015, the former Conservative MP David Willetts to ...

maintains cuts to income tax will “overwhelmingly benefit richer households”, and nearly half will go to the top 10% of households. Poorer households would continue to be affected by welfare cuts, despite Hammond claiming austerity was coming to an end.Jeremy Corbyn berates Theresa May for 'broken-promise budget'
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The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...

Spending impact

Taking advantage of

Office for Budget Responsibility The Office for Budget Responsibility (OBR) is a non-departmental public body funded by the UK Treasury, that the UK government established to provide independent economic forecasts and independent analysis of the public finances. It was formally ...

forecasts of increasing tax revenues from economic growth, the budget was largely a spending budget with a cost of £103 billion over the next six years. The major tax and spend policy decisions in the budget, by their financial cost over 6 years, were:

References

{{United Kingdom budget October 2018 events in the United Kingdom

2018 File:2018 Events Collage.png, From top left, clockwise: The 2018 Winter Olympics opening ceremony in PyeongChang, South Korea; Protests erupt following the Assassination of Jamal Khashoggi; March for Our Lives protests take place across the United ...

2018 in British politics 2018 government budgets