The government has scrapped its plans to hold a budget on November 6 after prime minister Boris Johnson announced that he will push for a general election in December.
The Treasury has confirmed the decision to push for an election on December 12 meant chancellor of the exchequer Sajid Javid would no longer deliver his budget next month.
A Treasury source said: “Parliament has voted for a delay. We're calling for an election, so we won't be delivering the Budget on November 6.”
This budget was originally advertised as the government's post-Brexit statement as it was to be delivered after the UK left the EU on the planned date of October 31.
At the time Mr Javid said: “This will be the first budget after leaving the EU.
“I will be setting out our plan to shape the economy for the future and triggering the start of our infrastructure revolution.”
But the planned exit date is now in question after parliament voted against the prime minister's Brexit deal timetable.
Ambassadors from the EU will now meet to discuss what extension to offer the UK, with end of January being a possible option.
The prime minister said he would allow MPs more time to debate his Brexit deal if they agreed to hold a December election.
The cancellation of the budget means that key reforms to adult social care and changes to pensions will also be delayed.
Many in the industry had hoped the budget would tackle pensions allowance issues and prioritise either reform or scrapping of the tapered annual allowance which is causing many doctors to retire early or cut their hours.
There was also hope that the budget would give the government the chance to elaborate on its promise to bring forward proposals to reform adult social care, as stated in the Queen’s Speech last week (October 14).
What do you think about the issues raised by this story? Email us on firstname.lastname@example.org to let us know.