"From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major fiscal event."
Following the spring 2017 Budget and Finance Bill, Budgets will be delivered in the autumn, with the first one taking place in autumn 2017.
Hammond said that the UK is the "only major advanced economy to make major changes to the tax system twice a year", adding that businesses, economy and tax experts like the International Monetary Fund, Institute for Government, the CBI, Chartered Institute of Taxation and the IFS have all been calling for this change.
The move to a single fiscal event will be made after the spring Budget in 2017. There will be a second Budget before the end of 2017 to switch to the new timetable, which will then be followed in future years.
The Office for Budget Responsibility is required by law to produce two forecasts a year. One of these will remain at Budget. The other will fall in the spring and the government will respond to it with a Spring Statement.
An Autumn Budget means tax changes will now be announced well in advance of the start of the tax year. The government says the single fiscal event and new timetable to bring forward tax changes so they are legislated for before the start of the tax year "will be beneficial to tax stakeholders".
Since 2011, most tax policy consultation summaries and draft Finance Bill legislation have been published on ‘Legislation day’, following the Autumn Statement. In 2016 this will be on 5 December. From 2018, under the new timetable, this will move to the summer.
Philip Hammond said: "Starting in autumn 2017, Britain will have an autumn Budget, announcing tax changes well in advance of the start of the tax year.
"From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major fiscal event.
"If unexpected changes in the economy require it, then I will, of course, announce actions at the Spring Statement, but I won’t make significant changes twice a year just for the sake of it.
"This change will also allow for greater Parliamentary scrutiny of Budget measures ahead of their implementation."
Claire Oldstein, Chief Customer Officer at MetLife UK, commented: “The Chancellor’s decision to abolish the Autumn Statement and replace it with a Budget in Autumn will make tax planning more straightforward for advisers and their clients and provide greater certainty.
“We hope that further simplifications to the system of announcing major tax changes will encourage providers to spend more time and effort focusing on innovation which will further support the successful delivery of pension freedoms. Measures that create a more stable environment for pension rules and regulations are very welcome in ensuring savers benefit from real pension freedom.”
