What does the chancellor do?
The Chancellor of the Exchequer is the UK government's finance minister. They run HM Treasury, set taxes, decide how much each department can spend, manage government borrowing and present the annual Budget to Parliament. It is usually seen as the most powerful job in government after the Prime Minister.
The Chancellor's biggest moment is the Budget. This is a statement to the House of Commons setting out tax changes and the state of the public finances. The government now holds one main Budget a year in the autumn, alongside a spring forecast update. The Autumn Budget 2026 is due on 28 October 2026.
The Treasury also runs spending reviews, which set departmental budgets for several years. The Chancellor sets the fiscal rules that limit borrowing. The independent Office for Budget Responsibility checks the plans and publishes forecasts on the same day as each Budget. Departments must agree new spending with the Treasury, which gives the Chancellor huge influence across government. Many big policy rows inside governments are about Treasury control.
The Chancellor does not set interest rates. That is the job of the Bank of England, which has been independent since 1997, although the Chancellor sets its inflation target. They live at 11 Downing Street, next to the Prime Minister. They represent the UK at international finance meetings and oversee financial regulation. The Chancellor also chairs key economic committees and leads talks with the Bank of England on financial stability.
- Sets taxes in the Budget
- Agrees each department's spending
- Manages government borrowing
- Oversees banks and financial regulation
- Sets fiscal rules
Budget: Under £1bn for the department itself, but it decides how about £1.3 trillion of public money is spent. Staff: About 2,000
What it runs or funds
HM Revenue and Customs, UK Debt Management Office, Office for Budget Responsibility (independent), National Savings and Investments, Royal Mint
Did you know? Officially the PM is First Lord of the Treasury, which is why No 10 has that title on its letterbox.
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Play WeDecide freeCommon questions
When is the next Budget?
The Autumn Budget 2026 is scheduled for Wednesday 28 October 2026.
Does the Chancellor set interest rates?
No. The Bank of England's Monetary Policy Committee sets Bank Rate independently.
Where does the Chancellor live?
At 11 Downing Street, next door to the Prime Minister at Number 10.
What is HM Treasury?
The UK's finance ministry. The Treasury is the UK's finance ministry, controlling spending, taxes and borrowing.
Which minister leads the Treasury day to day?
The Chancellor of the Exchequer. The Chancellor of the Exchequer leads the Treasury.