Tuesday will see the government’s first “Spring Statement”, which the chancellor, Philip Hammond will present at 12.30pm.
The changes to the system were first announced in 2016 when Hammond said that the Budget would take place in Autumn and respond to forecasts in Spring.
The Spring statement will last between 15-20 mins and will involve “no red box, no official document, no spending increases, no tax changes,” said a spokesperson. “There won’t be the photo-shoot outside Number 11.”
Experts from the Institute for Fiscal Studies, the Institute for Government and the Chartered Institute of Taxation wrote to the Chancellor in 2016, suggesting just one fiscal event a year, which would reduce “the frequency of new significant changes of direction, release resource for better consultation, produce higher quality legislation and more effective implementation, and make life simpler for taxpayers”.
Hammond said on the Andrew Marr show that he did not expect the speech to make too many waves.
The statement will largely be a response to the new fiscal and economic forecasts from the Office for Budget Responsibility. The OBR will also include an estimate of the annual cost of the post-Brexit divorce payments that Theresa May agreed to pay the EU.
Hammond might also suggest new ideas that will be relayed in the main budget statement in the Autumn budget.
The Spring statement will not include any tax changes or spending announcements, differing from the Autumn budget. Instead, it will have a focus on OBR forecasts, which will point to a downward revision of borrowing forecasts. This will possibly up to £11 billion as tax revenues have held up better than expected.
Watch the first Spring statement on Tuesday on the BBC News channel at 12.30 pm. BBC Two will cover developments from 11 am to 12.30 pm.