Treasury announces date of next Budget

The next Budget, setting out the government’s tax and spending plans, will be held on 15 March 2023, the Treasury has announced.

In a statement, Chancellor Jeremy Hunt said the Budget would also be accompanied by a forecast from the Office for Budget Responsibility.

The chancellor last set out his economic plans in November, including tax rises and a spending squeeze.

He claimed this would help tame soaring inflation.

Labour said the measures were a result of “the economic carnage” created by previous Prime Minister Liz Truss.

The government’s forecasters, the Office for Budget Responsibility, have said the UK is facing the biggest drop in living standards since record began as a result of rising prices.

They said inflation was expected to be 9.1% in 2022, dropping to 7.4% next year.

Earlier this month, Mr Hunt warned that the economy would “get worse before it gets better”.

The chancellor used his Autumn Statement in November to reverse the tax cuts of his predecessor Kwasi Kwarteng as well as announcing cuts for many departments – although these will not kick in until 2025.

Some Conservative MPs have expressed concern about the tax rises, but Mr Hunt insisted that he had a plan and “if we stick with it, we can get through to the other side”.

Backbenchers have also been seeking assurances from the government that it will not increase fuel duty – the tax is suppose to rise in line with inflation, but has repeatedly been frozen.

The Treasury has said a decision on the tax would not be taken until the Budget in spring 2023.