§ Mr. WattsTo ask the Chancellor of the Exchequer when he proposes to introduce the first unified Budget; and what statutory changes he proposes to make as a consequence of the move to the new timetable.
§ Mr. LamontThe White Paper on budgetary reform published in March 1992—Cm 1867—suggested that the unified Budget should be introduced in early December 1993. In order to allow more time for departments, local authorities and other bodies to translate the programme totals into management budgets the Government are planning on the basis that the Budget will be no later than the last week of November. The precise date will be announced nearer the time. Following the introduction of the new public expenditure procedures, the Government now believe that the annual local authority grant settlement proposals should be announced as soon as possible after the Budget. Discussions on this will take place with the local authority associations shortly. The Government will bring forward in the forthcoming Finance Bill two legislative changes needed as a consequence of the move to a unified Budget. Firstly, there is at present statutory provision for income tax personal allowances, the lower rate limit, the basic rate limit, the capital gains tax exempt amount, the inheritance tax threshold and the earnings cap for pensions to be raised in line with the retail prices index increase in the 12 months to December, unless Parliament decides otherwise. But the December RPI is not published until mid-January, so legislation is necessary to specify an indexation date which is known before the Budget. The Government propose to use the September RPI, published in mid-October, as the base month for statutory indexation from the 1994–95 tax year. The September RPI, is already used for uprating social security benefits. As now, Parliament will be able to 309W override the statutory indexation provisions in the Finance Bill if it wishes. Secondly, the Provisional Collection of Taxes Act currently sets 5 August as the deadline for Royal Assent to the Finance Bill. As the Budget is moving forward by somewhat more than three months, the Government propose to amend this Act to move the deadline for Royal Assent forward by three months as well, to 5 May.