Budget 2024: What is it and how does it affect me?

A red box or red briefcase is used to present the Budget, a tradition which dates all the way back to 1860

At some point, you might have been given some money that you have been told is yours to spend how you want.

Maybe it was some birthday money or perhaps you get an allowance each week.

In the same way that you might plan what to do with your pocket money, the government must also make a plan on what to do with the UK's money.

This plan is called a Budget, and the government usually announces their budget plans twice a year.

And it's a big deal not just for adults, but for everyone who lives in the UK.

When will the Budget be announced?

Chancellor of the Exchequer Rachel Reeves will announce the Budget on Wednesday

On Wednesday 30 October, the government is going to tell the public how it plans to spend money over the next year.

The money will be spent on things like education, healthcare, defence and public services like police forces and keeping the UK's roads in good condition.

Who announces the Budget?

Chancellor of the Exchequer Rachel Reeves will announce the Budget.

This is the very first Budget of the new Labour government, since they were elected in July.

It's also historic because in 2024, Rachel Reeves became the first ever female chancellor in a job that's been around over 800 years, so this will be the first time a woman has ever announced the UK Budget.

How is the Budget decided?

The chancellor of the exchequer decides how money will be spent and raised by the government with help from her office, which is known as the Treasury.

She will stand up in the Houses of Parliament and deliver a speech setting out Labour's plans for spending and raising money.

Immediately afterwards, the leader of the opposition, Rishi Sunak will give the Conservative party's response to the plans.

What announcements are expected in the Budget?

Before he was elected prime minister, Keir Starmer said the Labour party would not increase taxes for working people

The Labour party say they have to make "difficult" decisions in order to save the country money.

Rachel Reeves has said the Labour party have to fix the problems they have been left with by the previous Conservative government.

She has suggested there will be tax increases and cuts to public service spending, with government sources telling the BBC she hopes to raise £40 billion.

She has also said she will invest more in building projects such as roads, railways and hospitals.

But Jeremy Hunt - who was chancellor of the exchequer when the Conservative party were in power under Rishi Sunak - accused Rachel Reeves of exaggerating the problems with the Budget.

He said it was part of Labour's plan to make "the biggest tax-raising budget in history".

What are taxes?

Taxes are one way the government can raise money to pay for things.

Adults pay tax on money they earn.

You might not realise it, but you also pay tax on things you buy like food and drink, but this tax is often included in the price.

Taxes are something that the public care a lot about.

Some people support increasing taxes to pay for better public services, but others prefer to pay less tax.

How will the Budget affect me?

The Budget affects things like how much money is spent on schools and local services.

At home, some adults may find they have more or less money to spend depending on things like taxes or the financial help some families receive from the government.

Some parts of the Budget, such as defence spending, affect the whole of the UK.

Others, such as education, only affect England.

This is because Scotland, Wales and Northern Ireland make their own decisions on where to spend their money on certain public services.