UK chancellor brings forward medium-term fiscal plan

The Treasury has announced that chancellor Kwasi Kwarteng has brought forward the date of his medium-term fiscal plan to October 31.

The statement, which was originally planned for publication November 23, will outline how Kwarteng intends to pay for the tax cuts detailed in the mini-Budget, as announced in September.

In his letter to the Treasury Select Committee, the chancellor said that this forecast, alongside the forecast to be published in spring, would fulfil the obligation for the Office for Budget Responsibility (OBR) to produce at least two forecasts in a financial year.

While the new date comes ahead of the Bank of England’s decision on interest rates, set for November 3, the OBR will also be publishing its updated forecast for the economy on the same day as the fiscal statement.

Kwarteng further noted the government’s intention to respond to the committee’s report on ‘Jobs, growth and productivity after coronavirus’ following growth measure announcements throughout October and the publication of the fiscal plan.

He added that the delay in response was to ensure that the committee was provided with “the most complete response possible”.

The chancellor confirmed he will attend the committee soon after October 31.