Treasury

The UK Treasury, historically known as the Exchequer, is the government department responsible for managing public revenue and expenditure. The term "Exchequer" originates from the checkered cloth used for reckoning revenues, dating back to the 12th century when it was established as a distinct agency by Henry I. While the Treasury predates the Exchequer, the two became closely linked, with the Exchequer evolving into the Treasury over time.1

The Chancellor of the Exchequer, the head of the Treasury, is responsible for preparing and presenting the UK budget to Parliament. This budget outlines taxation proposals and economic forecasts, influencing taxation, income redistribution, and economic activities. The Treasury holds significant control over government departments regarding financial details. Modern budgets also serve as tools for economic policy, aiming for full employment and controlling inflation through fiscal policy.123