The expenditure must be payable out of the Consolidated Fund or National Loans Fund

35.4This criterion is expressly stipulated in Standing Order No 48, which defines a charge upon the public revenue as either ‘payable out of the Consolidated Fund or the National Loans Fund’ or ‘out of money to be provided by Parliament’. Particular questions arise in applying that definition to local authority expenditure and to expenditure out of the National Insurance Fund: those questions are considered at paras 35.835.9.

The definition excludes any method of financing expenditure by intercepting the proceeds of taxation or other sources of revenue before they are paid into the Consolidated Fund. There are cases of such intercepts being provided for in statute and not being authorised by Money resolution;1 but a Money resolution has been required to authorise deductions from the gross revenues of the Inland Revenue to pay tax credits.2

Expenditure which is to be met by appropriations from the Consolidated Funds of Northern Ireland, Scotland or Wales does not require authorisation by Money resolution.3 Similarly, bills which were only concerned with the authorisation and appropriation of amounts from the Northern Ireland Consolidated Fund did not require a Money resolution.4


  1. 1. Isle of Man Act 1979 (c 58), s 2; Transport Act 1980 (c 34), s 49(5). Both were introduced as government bills.
  2. 2. Finance Bill, CJ (1999–2000) 281; Tax Credits Bill, ibid (2001–02) 252.
  3. 3. HC Deb (1981–82) 24, cc 1071–87; Fair Employment (Northern Ireland) Bills 1975–76 and 1988–89. The constitutional position in respect of Wales was changed by the Government of Wales Act 2006.
  4. 4. Northern Ireland Budget Bill (2017–19), Votes and Proceedings, 13 November 2017; Northern Ireland Budget (Anticipation and Adjustments) Bill (2017–19): Votes and Proceedings, 20 March 2018; Northern Ireland Budget (No 2) Bill (2017–19), Votes and Proceedings, 9 July 2018. All of these bills were, however, certified as Money Bills under s 1 of the Parliament Act 1911: see para 33.25, fn 2.