Budget date set for 23 March 2011

Chancellor George Osborne will announce his second budget on 23 March 2011.

Osborne revealed the date of the next Budget when speaking at the Treasury Select Committee hearing on the comprehensive spending review (CSR). Committee chairman Andrew Tyrie MP challenged the chancellor over the fairness of the June Budget and the CSR but Osborne claimed his measures were progressive.

Osborne defended the actions he had taken to reduce the UK’s deficit, arguing the rich would bear a greater share of the cost. He said the government had been left with no option but to reduce the deficit.

‘I have done everything to move the UK out of the financial danger zone and gilts have shown that,’ he said. ‘We are not on negative watch with the credit rating agencies any more. We have taken those decisions and we as a government and parliament can be proud of that.’

Osborne was questioned about quantitative easing but declined to comment given that the Bank of England’s monetary policy committee (MPC) was meeting today. Osborne said that his deficit reduction plan had given the Bank of England more options.

‘I think we have a robust plan which allows the MPC to increase interest rates or reduce them,' he said. ‘I hope able to provide that rock of fiscal stability on which they can operate.'