What is an emergency budget? When they take place and the government process explained

Boris Johnson and Tory leadership candidates have ruled out holding an emergency budget to deal with the cost of living crisis before the election of the next Prime Minister

Boris Johnson has ruled out holding an emergency budget before the next Prime Minister takes office (

Image: Zuma Press/Pictures PA)

Boris Johnson and Tory leadership candidates Liz Truss and Rishi Sunak have refused to hold an emergency budget before the new prime minister is elected next month.

This means no decision will be made on new support for people facing the cost of living crisis for at least four weeks, before the new Conservative leader and Prime Minister is announced on September 5.< /p>

This is despite calls for the government to act immediately by recalling Parliament and organizing an emergency budget.

But what is an emergency budget?

First, we need to understand what a budget is and how it works.

How the budget works

The budget - or financial statement - provides an overview of the nation's finances and economic situation, as well as the government's proposals to change taxation.

It also includes the economic forecast from the Office for Budget Responsibility (OBR).

The Chancellor of the Exchequer delivers a budget speech in the House of Commons as MPs must approve the government's plans.

Former Chancellor Rishi Sunak presenting the spring budget statement to MPs in March (

Picture:

AFP via Getty Images)

The opposition then responds to the statement, before four days of debate on the budget resolutions, which are the tax measures announced in the budget.

These may come into effect...