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'What is the Budget?' video transcript

The Budget is the major financial and economic report made every year by the Chancellor of the Exchequer.

The word “budget” derives from the term “bougette” – a wallet in which either documents or money could be kept.

Traditionally, the statement is kept in a briefcase - known as the red box. The original was first used by William Gladstone in 1860.

Chancellors are allowed to refresh themselves with alcoholic drinks during their Budget speech - no other member of Parliament can do this!

They can deliver the Budget at any time of the year although in recent years it has taken place in the spring.

Before going to Parliament to deliver the statement, the Chancellor holds up the red box outside No11 to waiting photographers.

Chancellors use the Budget statement to update Parliament and the nation on the state of the economy, on the public finances and on progress against the Government's economic objectives.

They can review and change tax rates, and can make announcements on how taxpayers' money will be spent in the coming years.

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