Estimates are the Government's spending plans which are presented to Parliament for approval every year. Government requests to Parliament for funds for departments are made in at least two and sometimes as many as four stages throughout the year in a process known as the 'Estimates Cycle'.
Consideration of Estimates happens at least once a year (between April and July, with respect to the Main Estimates), but more usually twice (between February-March with respect to the Supplementary Estimates). Select Committees can scrutinise each departmental Estimate, and MPs collectively debate and scrutinise them on Estimates days.
Once the Estimates have been debated, the House of Commons must consider a Supply motion. If the House approves the motion, then the Supply Resolution that results paves the way for a Supply and Appropriation Bill. Once this Bill is passed, it legally authorises the expenditure as set out in the Estimates.
Each Government department produces its own annual Estimate, and HM Treasury compiles and publishes them together in a single Estimates report for presentation to Parliament.
Treasury rules define the spending categories contained in the Estimates. Each departmental Estimate is made up of three key parts.
This is the high-level description of what the money will be spent on in each department. If a department spends money outside the scope of the ‘ambit’ approved by Parliament, then that spending is unauthorised and therefore illegal. In such circumstances a department will require a Statement of Excess to provide retrospective approval for the spending.
These cover net spending, subject to the limits set out in the Spending Review process, in areas of activity that departments can generally forecast and over which they are therefore expected to exercise control. In each annual Estimate, the DELs are divided into two sub-categories:
Resource DEL, or current ‘day-to-day' spending: this includes, for example, costs for staff, purchasing goods and services, rents, maintenance and other administrative costs, depreciation and the sale of assets.
Capital DEL, or investment spending: this includes capital grants, loans, and the purchase, disposal or improvement of major assets.
This covers net spending in areas that are less predictable and therefore more difficult for departments to forecast and control:
Resource AME: this includes benefits, state pensions, and other welfare costs, as well as provision for liabilities.
Capital AME: this includes areas such as student loans.
Generally, departments cannot switch funds from DEL to AME, or from resource to capital spending categories, once the Estimate has been approved. However, within each category, a breakdown of proposed spending is provided, and this does not bind the government. Here, the government can vire money from one heading area to another, provided that neither the ambit nor the overall spending limit is breached.
The UK Spending Review outlines how Government funds will be allocated over several years. Unlike the Budget, which raises revenue, the Review decides how it is spent. But how is it approved? What role does Parliament play if it doesn’t vote on the Review itself? This blog explores how the Spending Review works, how it differs from the Budget, and how Parliament holds the Government to account through the Estimates process.
On Friday 13 June, the House of Commons will once again debate the Terminally Ill Adults (End of Life) Bill, which would legalise assisted dying in England and Wales. Specifically, it will hold a second day of Report Stage, during which the whole House will debate and vote on amendments. This briefing explains the structure of Report Stage, what happened on the first day of Report Stage, how amendments are selected and grouped, on which amendments a decision can still be taken, and the likely sequence of events this Friday, including whether a final vote will take place.
The Chancellor, Rachel Reeves MP, will deliver a statement on the Spending Review. MPs will resume Report Stage of the assisted dying bill and debate key legislation on football governance, mental health, and planning and infrastructure. Peers and MPs are expected to resolve their standoff over AI and copyright in the Data (Use and Access) Bill. The Commons Defence Committee will hear from the lead reviewers of the Strategic Defence Review, while a Lords Committee will examine the Chagos Archipelago sovereignty issue. The Hansard Society’s Director will give evidence to the Modernisation Committee about access to the House of Commons and its procedures.
In this episode, we explore why ministers keep bypassing Parliament to make major announcements to the media — and whether returning to the Despatch Box might help clarify their message. We unpack the Lords' uphill battle to protect creators’ rights in the Data Use and Access Bill, challenge claims that the Assisted Dying Bill lacks scrutiny, and examine early findings from a Speaker’s Conference on improving security for MPs, as threats and intimidation against politicians continue to rise. Please help us by completing our Listener Survey. It will only take a few minutes.
Our evidence on treaty scrutiny has been published by the House of Lords International Agreements Committee. Our submission outlines the problems with the existing framework for treaty scrutiny and why legislative and cultural change are needed to improve Parliament's scrutiny role. Our evidence joins calls for a parliamentary consent vote for the most significant agreements, a stronger role for Parliament in shaping negotiating mandates and monitoring progress, and a sifting committee tasked with determining which agreements warrant the greatest scrutiny.
