Money to be provided by Parliament

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35.5Money to be provided by Parliament is by far the most common source of expenditure authorised by Money resolution. A resolution in those terms initiates the process of giving legislative sanction to annual expenditure for new or expanded purposes as yet unauthorised. The sanctioning of such expenditure is therefore a two-stage procedure: (1) It is initiated by a Money resolution authorising expenditure payable out of money to be provided by Parliament. Such a resolution is normally in entirely general terms, with no precise financial sums being specified;1 (2) It is subsequently presented to the House of Commons in the form of an Estimate specifying a definite amount of expenditure for the financial year in question, which receives final sanction in a Supply and Appropriation Act. Although the initial Money resolution is intended only to authorise the eventual presentation of an Estimate, it is nonetheless regarded as a motion for a charge upon the public revenue in the terms of Standing Order No 48 and therefore could not be brought before the House of Commons without the recommendation of the Crown (on which see also para 35.16 ).

The following examples may be given of the types of expenditure charged upon moneys to be provided by Parliament:

  1. The expenses connected with the establishment of a new public body.
  2. The expenses arising out of the imposition of new duties on an existing department or authority.
  3. Grants authorised to be paid, whether annually or otherwise, to specified bodies.
  4. Any proposal whereby the Crown would incur a liability or a contingent liability payable out of money to be voted by Parliament.
  5. The transfer of expenses from local revenues to Estimates.

Footnotes

  1. 1. For an instance of a Money resolution setting upper limits on cumulative financial support from the National Loans Fund, see Money resolution on the Commonwealth Development Corporation Bill (2016–17), Votes and Proceedings, 29 November 2016. See also para 35.28. The explanatory notes accompanying the relevant bill should, however, include an informal estimate of the amount of expenditure expected to be incurred. For an example of a Money resolution limiting certain minimum amounts to no more than the amounts set in the Bill, see money resolution on the NHS Funding Bill, Votes and Proceedings, 27 January 2020.