Introduction to expenditure: Money resolutions

35.1The creation of a new and continuing service, function or purpose which will entail increased public expenditure normally requires to be authorised by specific primary legislation (see para 33.11 ). In accordance with Rule 2 of the general rules governing financial procedure (see para 33.12 and Standing Order No 49), the expenditure entailed by such an enactment must be initiated by resolution; and in accordance with Rule 3 of those rules (see para 33.13 ) (which, for this purpose, is set out in Standing Order No 48), any such resolution must first be recommended from the Crown.

Resolutions of this kind, providing authorisation for the financial consequences of proposed legislation and known as Money resolutions, are the primary subject of this chapter. The financial consequences of legislation which are covered by Money resolutions normally relate to expenditure, but may extend to certain other matters which are not strictly expenditure but involve a loss to the Exchequer: for example, the remission of debts owed to the Crown.

The chapter also deals with the procedure on bills sanctioning expenditure, including bills the main object of which is the creation of a charge on public expenditure, so far as that procedure is affected by the requirement for a Money resolution (for public bill procedure in general, see Chapters 27–30); and finally the chapter describes other types of proceedings which, while not directly linked to provisions in proposed legislation, have expenditure implications and therefore may be subject to the general rules of financial procedure.