Publications / Guides

How does Parliament approve Government spending? A procedural guide to the Estimates process

Pound coins
Pound coins

What are Estimates?

Estimates are the Government's spending plans which are presented to Parliament for approval every year.

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.

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'.

Given the dependence of all forms of government activity on the availability of public finances, the Estimates process underpins all other forms of accountability and goes to the heart of the relationship between Parliament and Government.

Read the guide
Rishi Sunak at the Despatch Box. ©UK Parliament/Jessica Taylor

What is the Estimates cycle?

Multi-year Spending Reviews set out headline spending plans for each Government department. Drawing on the plans outlined in the Spending Review, the Government then makes formal requests to Parliament for funds for departments for the financial year ahead. These requests are made in at least two and sometimes as many as four stages throughout the year in a process known as the 'Estimates Cycle'.

Read the guide
House of Commons Select Committee session. ©UK Parliament/Catherine Bebbington

How does Parliament debate Government spending plans?

Departmental Estimates are scrutinised by departmental select committees in the House of Commons. Three days (other than Fridays) are then allotted in each parliamentary session for the consideration of Estimates in the Commons Chamber. These are known as Estimates Days. Any MP can bid, via the Backbench Business Committee, for an Estimates Day debate on one of the departmental Estimates.

Read the guide
House of Commons chamber. ©UK Parliament / Jessica Taylor

How does Parliament approve Government spending plans?

Approval of the Estimates (Main or Supplementary) comes first in the form of a Supply resolution. However, such resolutions have political force, but they are not law. Consequently, legislation is also required - in the form of a Supply and Appropriation Bill - before the departmental expenditure set out in the Estimates is legally authorised by Parliament.

Read the guide
The House of Commons, 1833, painting by Sir George Hayter. ©National Portrait Gallery, London

Why does Parliament approve Government spending?

The legal basis for parliamentary control of Crown (i.e. Government) expenditure dates back to the Glorious Revolution of 1688-89 and Parliament’s decision to legalise the standing army but provide its expenses only for 12 months in advance. Over time, this principle – that expenses be granted only for the year ahead – was extended to other areas of government expenditure until, by 1830, all civil government expenditure was provided on this basis. Six key principles or rules now govern what has become known as the Estimates process.

Read the guide
Photo of pound notes. ©Adobe Stock/kamui29

What is a Money Bill?

A Money Bill is defined in Section 1(2) of the Parliament Act 1911. It is a public bill which in the opinion of the Speaker of the House of Commons contains only provisions dealing with national taxation public money or loans. If a bill is certified as a Money Bill by the Speaker, and is passed by the House of Commons, it will become law after one month, with or without the approval of the House of Lords.

Read the guide

Citation

18:18pm, 7 March 2023

Cite this page

Hansard Society (2023), The Estimates: A procedural and constitutional guide, (Hansard Society: London)

Latest / Highlights

Submissions / Parliamentary scrutiny of treaties - Our evidence to the House of Lords International Agreements Committee

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.

03 Jun 2025
Read more

News / Parliament Matters Bulletin: What’s coming up in Parliament this week? 2-6 June 2025

Legislation to give Ministers powers to update product regulations, including by aligning with EU standards, will be debated by MPs. The battle between the Commons and the Lords over AI and copyright provisions in the Data (Use and Access) Bill enters a further round, led by Baroness Kidron who is championing the interests of the creative industries. MPs will debate an e-petition to decriminalise abortion. The Border Security Bill, Employment Rights Bill, and Sentencing Guidelines Bill will be scrutinised by Peers. There are backbench debates on high street banking closures and the safety of battery energy storage. Increases to Peers' allowances and a new second homes allowance will be put to the Lords. The Home Secretary and Lord Chancellor face oral questions from MPs.

01 Jun 2025
Read more

News / Will Parliament get its teeth into Keir Starmer's trade deals? - Parliament Matters podcast, Episode 94

You wait ages for a post-Brexit trade deal – and then three show up at once. With the Government unveiling new agreements with India, the US and the EU, we explore why Parliament has so little influence over these major international agreements. Liam Byrne MP, a former Labour Minister and current chair of the House of Commons Business and Trade Committee argues that this needs to change. Please help us by completing our Listener Survey. It will only take a few minutes.

23 May 2025
Read more

News / Assisted dying bill: Special series #12 - Parliament Matters podcast, Episode 93

Is Kim Leadbeater's Assisted Dying Bill now "over the hump?" The Bill's supporters got it though its first day of Report Stage consideration in the House of Commons unscathed, with comfortable majorities in every vote. So, with debate on the most contentious set of amendments disposed of, will it now coast through its remaining scrutiny days in the Commons? Please help us by completing our Listener Survey. It will only take a few minutes.

17 May 2025
Read more

Submissions / Status and rights of independent MPs in Parliament – Our evidence to the House of Commons Procedure Committee

Our evidence on the status and rights of independent MPs has been published by the House of Commons Procedure Committee. Our submission summarises the direct and indirect references to political parties in the Standing Orders and whether they might apply to groupings of independent MPs, analyses whether small parties and independent groupings face disadvantages, particularly in relation to committee membership, and considers whether parliamentary publications should distinguish between the many different kinds of independent MP.

12 May 2025
Read more

Categories

Themes

Contact

Legal

Fundraising Regulator logo