For me, the Budget is one of the most important days of the year, as it’s when I have to decide how we, as a country, spend our money. It’s a bit like what your parents do at home when they think about how much to spend on important things like food, bills and your pocket money.

The Government gets money from taxes

In the same way that a family gets wages and a salary from working, the Government gets money from taxes. I have to decide how best to spend this money on the things that the Government does. And we do a lot of important things: like pay for teachers, nurses and police; maintain schools, hospitals and universities; build new roads, houses and railways; or give money to pensioners and those who need help finding a job.

Everyone is affected

Everyone is affected by the Budget. At the last one, for example, I cut the VAT rate, the tax people pay on their shopping. This meant that many things young people buy became cheaper, like mobile phone bills, cinema tickets and DVDs. I also cut income tax, putting more money into family’s pockets.

The future

The Budget is also about preparing the country for a stronger future. Some of that is about allowing money to be used to pay for new homes, roads and schools. But it is also about making sure that there are good jobs around in the future when you begin looking for work: in digital media, in science and in environmentally-friendly industries, for example. Budgets can, and do, encourage companies to create these sorts of jobs. I also make sure that there is money to pay for places at colleges and universities, so when the time comes, you get to do the course that’s right for you and get the skills you need.

The red box

Because everyone has an interest in the Budget, there is always a lot of attention from the newspapers, TV and radio. You may have seen Chancellors standing outside the door of No 11 Downing Street carrying the Budget speech in a red briefcase – they call it the “red box” – on the morning of the Budget and wondered about the process that gets us to that day.

Lots of planning

It takes a lot of time and work to put the Budget together. There are hundreds of people thinking about the different options and we talk to lots of people about what we should spend the money available on.

Treasury officials and I meet with lots of people who have specific interests in the Budget, and wanted to make me aware of their thoughts on certain issues. Whether they’re individuals, or businesses, or environmental groups, they all have a contribution to make to the process. Treasury staff have been busy working on getting all the policy detail right in time for Budget day, to ensure we get the outcome we want from any policy changes.

More information

If you’ve listened to a Budget speech you’ll know it can be long and detailed, and perhaps a bit hard to take in everything that’s been announced in one go. That’s why we have a Budget website hm-treasury.gov.uk/bud_bud09_index.htm where you’ll be able to find more detail and information on what I’ve announced and how it affects you.

And, from the moment I sit down after I’ve delivered my speech in the House of Commons, more work goes on to make sure that what I’ve said will happen, happens as soon as possible.

Did you know? 

1. The word “budget” comes from an old French word “bougette” which meant “little bag”.

2. Traditionally the Budget has been delivered on a Tuesday, though it can take place on any day.

3. Chancellors are allowed to have an alcoholic drink during their Budget speech delivery – no other member of Parliament may do this.

4. The original Budget briefcase was first used by William Gladstone in 1860 and then by every Chancellor until 1965. The Gladstone box is now quite frail and has to be handled with gloves to prevent it breaking. This is the box that Alistair Darling used for Budget 2008 and will use again this year. When it’s not being used for Budget it is kept on display in the Cabinet War Rooms.

5. The Chancellor traditionally makes a Budget Day broadcast to the nation during the evening of Budget Day. The broadcast provides the Chancellor with a further opportunity to outline the intentions and ideas to the public.

Words by Alistair Darling, MP