A recent article in the Daily Mail claimed that Britain’s “federal funding system” had been “hit hard by the budgeting rule changes”.
This claim has been disproven.
The article was a reference to the UK’s “Finance Bill of 2018”, which was passed last month and sets out the rules for the UK budgeting system.
A breakdown of the bill shows that it would amend the Financial Services and Markets Act 2003 (FSMA) to require a budgeting commission to set a spending plan for each year, based on the “business case” that was laid out by the Treasury and its partners.
“The rules would allow any business to claim tax relief in the event of a sudden decline in revenue, a sudden increase in costs or a sudden reduction in the number of workers,” the Daily Post’s Nick Cohen said.
This “business-case” is usually the one that lays out a government’s overall economic and fiscal outlook.
Cohen wrote that the rules would “allow businesses to claim a tax break of up to £2,500 on any salary of up of £100,000 for up to two years”.
The Daily Mail article also quoted a source in the UK Parliament, who said the “fiscal rules will now be subject to a public consultation”.
“There are a lot of things that have changed since last year, and I think that’s one of the reasons why the consultation process has been quite slow,” the source told the Daily Mirror.
In a response to the article, the Financial Times said that the bill had “nothing to do with budgeting and is more a change in the way the UK has traditionally set out its financial guidance”.
“The bill does not contain any changes to the way we set out our fiscal plans, which is why the bill is not in any way related to budgeting,” the newspaper added.
While there has been some confusion about the exact meaning of the “Fiscal Rules”, the BBC’s financial affairs correspondent Jonathan Beale said that it was “quite clear” that the “rule change” was a change to how the UK sets out its economic and financial guidance.
He added that the proposed rules would also apply to the Scottish government, but that “the Scottish Government has not yet made a formal proposal to parliament”.
There is also no confirmation that the UK Government has put forward any plans to amend the bill.
On the other hand, the Telegraph newspaper, which first reported the Daily Paper’s claim, has already taken the story down from its website, which has been updated to reflect that the article is false.