Publications / Guides

How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process

The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar
The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar

In order to raise income, the government needs to obtain approval from Parliament for its taxation plans. The Budget is the means by which the House of Commons considers the government’s plans to impose 'charges on the people' and its assessment of the wider state of the economy.

The Budget is usually held on a Wednesday after Prime Minister’s Questions and is usually followed by four days of debate in the House of Commons. The Budget process has four key parliamentary stages: the financial statement; the Budget debate; the Budget resolutions and the Finance Bill.

Tulip Siddique MP in the House of Commons Chamber, 8 June 2022. ©UK Parliament / Jessica Taylor

How do MPs scrutinise the Budget?

The Financial Statement is usually followed by four days of debate on the Budget. The debate enables MPs to consider the government’s proposals for charges, the role that these charges play in the context of the tax system as a whole, and whether the revenue raised is sufficient given the government’s expenditure plans.

Tellers at the table of the House of Commons announcing the result of a division. ©UK Parliament / Jessica Taylor

How do MPs approve the Budget?

MPs agree a Provisional Collection of Taxes motion which provides provisional authority for changes in taxes and duties that the government proposes should take effect on Budget day or soon after. Dozens of Ways and Means resolutions are also required to provide parliamentary authority for individual tax measures.

Shadow Chancellor Rachel Reeves MP speaking in the House of Commons Chamber, 23 March 2022. ©UK Parliament / Jessica Taylor

Can MPs amend the Budget?

MPs can propose amendments only to the first Budget motion. Any of the other Budget motions can be voted upon but they cannot be amended. Under Standing Order No. 51(3) where there is a series of motions the second and subsequent motions have to be put ‘forthwith’ – that is, without amendment or debate.

What is the Finance Bill?

The government’s taxation plans, as set out in the Budget, require statutory (that is, legislative) authority. The Finance Bill provides this. Once the Budget resolutions have been agreed by the House of Commons at the end of the Budget debate, these ‘charging’ or ‘founding’ resolutions form the basis of the Finance Bill.

Prime Minister Rishi Sunak MP in the House of Commons Chamber, 1 March 2023. ©UK Parliament / Jessica Taylor

What principles and rules govern the Budget process?

Parliament’s scrutiny and authorisation of the government’s taxation plans is fundamental to the political system. As the public’s representative body, it is Parliament’s responsibility to hold government to account – between elections – for the money it raises and spends.

8:15pm, 11 March 2023

Hansard Society (2022), How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process, (Hansard Society: London)

News / The Budget: Why aren't MPs told first? - Parliament Matters podcast, Episode 51

The Speaker, Sir Lindsay Hoyle, has criticised Ministers for leaking the content of the Budget. But Ministers have strong incentives to “pre-leak” plans, making the practice unlikely to stop, especially as the Speaker has limited power to penalise them. We also discuss the sub judice rule, which bars MPs from commenting on ongoing court cases amid controversy about the handling of the Southport murder case. Finally, former Liberal Democrat minister David Laws offers insights into a century of Labour-Lib Dem relations as we explore what the future holds for the Liberal Democrats in Parliament.

01 Nov 2024
Read more

News / Parliament Matters Bulletin: What's coming up in Parliament this week? 28 October - 1 November 2024

It’s finally Budget Week! This Wednesday marks the historic presentation of the Budget for the first time by a female Chancellor of the Exchequer. The Budget debate will continue for the rest of the week and into next, featuring Rishi Sunak’s final appearance at the despatch box before the new Leader of the Opposition is announced on Saturday. Monday will also bring the final nominations for most select committees, allowing them to get to work planning their first inquiries. Meanwhile, two major pieces of legislation are set to advance: the Great British Energy Bill and the Renters’ Rights Bill.

27 Oct 2024
Read more

Publications / What’s the point of petitions? What the last century reveals about petitioning and people power in modern Britain

Petitioning has been one of the most popular and persistent forms of political participation since the dawn of mass democracy in Britain. But little is known about its development throughout much of the 20th Century. Contrary to received wisdom at the time or since, petitioning did not become irrelevant or old-fashioned in the era of universal suffrage. Moreover, petitioners often held more subtle or sophisticated definitions of ‘success’ than those who condemned the practice as ineffective.

25 Oct 2024
Read more

Briefings / 14 things to look out for in Parliament this Autumn

When parliamentarians return to Westminster on October 7, all eyes will be on the Budget — the major parliamentary event on the immediate horizon. However, as the Government’s legislative agenda picks up speed and select committees get underway, there will be many other important developments to track. In the months ahead, we’ve identified 14 key issues worth watching closely, particularly as some of them may provide crucial signals about how this Government’s approach to and treatment of Parliament compares to its predecessors.

04 Oct 2024
Read more

Blog / Select committee chair elections: what do the results tell us about the new Parliament?

The House of Commons recently held elections for the chairs of its select committees in the new Parliament. But how did this year's elections compare to those of previous years? Were they more competitive? How well were women and ethnic minority MPs represented among the candidates and winners? And what level of parliamentary experience do the newly elected chairs bring to the table?

27 Sep 2024
Read more