A second Budget within a calendar year is highly unusual. Five years ago, in the run-up to the May 2010 General Election, the Conservatives announced that if elected they would hold an 'Emergency Budget' in order to reverse the policies of the previous Labour government and introduce measures aimed at tackling the UK's deficit. Although many Conservative manifesto pledges failed to survive the Coalition agreement with the Liberal Democrats, the Emergency Budget duly took place on 22 June 2010.
With the Conservatives having been in Government for the last five years the circumstances are different this time, but nonetheless within two weeks of his party winning the General Election on 7 May, Chancellor George Osborne announced that he would hold a 'Stability Budget' on 8 July because, in his words, 'I don't want to wait to turn the promises we made in the Election into a reality'.
Although many commentators expected the Conservatives to be the largest party following the May 2015 General Election, few predicted that they would win enough seats to be able to form an overall majority government and have the power to implement their manifesto in full. The Second Budget has provided the Chancellor with an opportunity to introduce measures on tax, spending and borrowing that he might not have been able to enact while in Government with his Coalition partners at the time of the Spring Budget on 18 March.
This Budget Report was written immediately after the Chancellor delivered his Budget speech and offers a general overview of the main announcements. Please contact us for expert advice that is specific to your individual circumstances.