What are Estimates? What are the Government's spending plans?

Publications / Guides

What are Estimates?

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.

The ambit

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.

Departmental expenditure limits (DELs)

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.

Annually managed expenditure (AME)

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.

In this collection

What are Estimates?

Rishi Sunak at the Despatch Box. ©UK Parliament

What is the Estimates cycle?

Select Committee session. ©UK Parliament

How does Parliament debate Government spending plans?

Suella Braverman at the Despatch Box. ©UK Parliament

How does Parliament approve Government spending plans?

House of Commons in 1833. ©National Gallery

Why does Parliament approve Government spending?

What is a Money Bill?

← Back to the collection homepage

Latest / Highlights

News / Growing the Greens: Ellie Chowns MP on Parliament, polling and Zack Polanski - Parliament Matters podcast, Episode 124

What is it like to be part of a small but growing parliamentary party? We talk with the leader of the Green Party group at Westminster, Ellie Chowns, about the challenges of operating with limited numbers, the practical realities of parliamentary life, and how institutional structures shape the influence of smaller parties. We discuss our political culture, the Greens’ approach to leadership, internal decision-making, and the party’s longer-term ambitions for electoral and parliamentary reform and a more representative system.

News / Parliament Matters Bulletin: What’s coming up in Parliament this week? 12-16 January 2026

The result of the election for the next Lord Speaker will be announced. In the Commons, Government amendments addressing the “family farm tax” will be considered during Committee Stage of the Finance (No. 2) Bill. The Hillsborough Law is expected to complete its remaining stages in the Commons, and the Sentencing and the Diego Garcia Bills the same in the Lords. Peers will consider the assisted dying bill for a sixth day in Committee. MPs will debate an e-petition calling for a new general election, new towns, financial support during the pandemic, and the importance of the Arctic and High North. Select Committees will hear evidence from former OBR chair Richard Hughes on the UK’s fiscal framework, two Cabinet Ministers on AI and copyright, and the Housing and Courts Ministers on their responsibilities.

News / Are UK elections under threat? A conversation with the chair of the Electoral Commission, John Pullinger - Parliament Matters podcast, Episode 123

With the Government investigating allegations of foreign influence in British politics, we are joined by John Pullinger, Chair of the Electoral Commission, to take stock of the health and resilience of the UK’s electoral system. Our discussion ranges widely over the pressures facing elections and campaigning today, and what issues Parliament may need to grapple with in a future elections bill.

News / Is being Prime Minister an impossible job? - Parliament Matters podcast, Episode 121

Why do UK Prime Ministers seem to burn out so quickly? We are joined by historian Robert Saunders to examine why the role has become so punishing in recent years. From Brexit and COVID to fractured parties, rigid governing conventions and relentless media scrutiny, the discussion explores what has gone wrong – and what kind of leadership and political culture might be needed to make the job survivable again.

News / The King and Parliament: The relationship between politics and the royals - Parliament Matters podcast, Episode 122

In this episode we are joined by author and former royal correspondent Valentine Low to explore the evolving relationship between Downing Street and the Palace and why it matters for Parliament. Drawing on his book Power and the Palace, we explore how royal influence has shifted from Queen Victoria’s overt political interventions to Elizabeth II’s studied neutrality. Along the way, we connect historical episodes – where monarchs helped shape diplomacy and constitutional outcomes – to today’s flashpoints, from the prorogation and dissolution of Parliament to referendums and royal finances and the looming constitutional headaches of future hung parliaments.