Chancellor of the Exchequer

Chancellor of the Exchequer, British government official, the Second Lord and ministerial head of HM Treasury (the prime minister is also styled the First Lord of the Treasury). He (to date it has always been a male appointment) has overall responsibility for the whole of the Treasury’s work, which is mainly concerned with the government’s financial and economic policies. The Chancellor of the Exchequer also oversees some smaller departments, including HM Customs and Excise, National Savings, and the Inland Revenue. The minister presents a budget each year in which tax increases (or decreases) and proposed public expenditure are outlined. Budget Day sees the Chancellor deliver his financial plans for the year in the House of Commons. Mindful of the role’s history, prior to the speech, during which he may partake of an alcoholic drink, the Chancellor traditionally poses outside his official London residence, 11 Downing Street, with the Budget Box, a copy of the battered red case in which Chancellors since the late 19th century have kept their speeches secret.

The word “exchequer” derives from a chequered board called a scaccarium, similar to an abacus, which was used by the Treasury in the 12th century for accounting purposes. The position of the Chancellor of the Exchequer has been in existence since the 13th century when the duties involved checking the Treasurer’s accounts.