What is the Medium Term Budget Everyone is Talking About?
Over the next few weeks, you may hear people starting to talk about the Medium Term Budget and the speech that will be given on the 30th of October.
But, didn’t we already have a budget speech in February this year? Yes, we did. You are not going mad. Don’t worry.
Each year in February the Government makes a big deal of presenting a new annual budget (which also covers some rough plans for spending over the next few years as well). This is where new taxes are announced and new allocations are made for new projects etc. We also get updates on social security grants and the like.
Half a year later, the government then likes to review and update their plans based on how things have been going this far in the year. They don’t introduce new spending plans or changes to taxes or anything like that but merely announce if they are making any adjustments to their already existing February plan.
The Medium Term Budget is also colloquially known as the “mini budget”.
If you have a monthly budget for your household spending then it is good to review how things are going every now and then and make adjustments as needed.