Why does Parliament approve Government spending?

Publications / Guides

Why does Parliament approve Government spending?

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

The legal basis for parliamentary control of 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. This 12-months in advance principle 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.

The principles or rules governing the Estimates process are derived variously from practices of the House of Commons stretching back to the early eighteenth century, from Standing Orders, and in some instances from statute.

Principle 1: The annuality rule

Resources are authorised by Parliament only for use in the financial year set out in the Supply and Appropriation Act. The original purpose behind this rule was to prevent the Government hoarding surplus money from one year to the next and then spending it in ways not authorised by Parliament. This annuality rule was first applied in the 1862-63 session, following a recommendation from the then newly-established Committee of Public Accounts in 1861. The rule is now formally set out in the Government Resources and Accounts Act 2000 and is important in the context of NAO auditing of government accounts at the end of the financial year.

Principle 2: The sessionality rule

Expenditure resolutions must, subject to certain exceptions, be given statutory effect in the parliamentary session in which they are passed (although this has been disapplied from time to time, including in relation to the post-2011 shift in the start and end of parliamentary sessions from autumn to spring. The rule is now regarded as far less important than it used to be).

Principle 3: The financial initiative of the Crown

Standing Order No. 48 states that the House of Commons will:

"receive no petition for any sum relating to public service or proceed upon any motion for a grant or charge upon the public revenue, whether payable out of the Consolidated Fund or the National Loans Fund or out of money to be provided by Parliament, or for releasing or compounding any sum of money owing to the Crown, unless recommended from the Crown."

The provision that the House will only consider expenditure proposals made by the Crown dates back to an Order of the House of Commons on 11 June 1713 which stated "That this House will receive no Petition for any sum of money relating to public services but what is recommended from the Crown." This Order gave the Government the sole power of financial initiative in Parliament. It was partly designed to limit ‘pork barrel’ politics by MPs seeking funds for local constituency expenditure but with little or no regard for the nation’s finances.

Principle 4: Financial privilege

Control of spending can be exercised only by the House of Commons, not by the House of Lords. The Parliament Act 1911 provides that all Supply and Appropriation Bills must be certified as Money Bills and can receive Royal Assent without the consent of the Upper House.

In practice, Supply and Appropriation Bills go to the House of Lords but their passage there is a formality: such Bills are not printed and are not debated or amended.

Principle 5: MPs must give preliminary approval of expenditure prior to legislation

Preliminary approval of expenditure by MPs must be given in a resolution of the House prior to legislation to enact the spending plans.

Standing Order No. 49 sets out that "Any charge upon the public revenue whether payable out of the Consolidated Fund or the National Loans Fund or out of money to be provided by Parliament including any provision for releasing or compounding any sum of money owing to the Crown shall be authorised by resolution of the House."

The Supply and Appropriations Bill for final authorisation of the release of monies from the Consolidated Fund to departments can therefore only be brought forward once the House has considered the Supply motions. In the same way, the Finance Bill follows consideration of the Budget motions.

Principle 6: Control on the purposes of expenditure

Spending can only be for the purposes approved by Parliament, as set out in the ‘ambit’ of each departmental Estimate. The National Audit Office (NAO) audit function provides a check at the end of the year on whether or not departments have spent money only for the purposes approved by Parliament.

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 / Parliament Matters Bulletin: What’s coming up in Parliament this week? 13-14 May 2026

Parliament returns on Wednesday with the State Opening and the King’s Speech marking the start of a new parliamentary session. Many traditions will be observed, including presentation of the Outlawries Bill and the Select Vestries Bill and an order instructing the Metropolitan Police to prevent “stoppages in the street”. In the Commons, the Speaker will remind MPs of their duties and responsibilities, before debate begins on the Loyal Address. The Education Committee will take evidence on the benefits of children reading for pleasure, and the Home Affairs Committee will consider responses to antisemitism.

Briefings / The assisted dying bill: How could the Parliament Act be used?

The Terminally Ill Adults (End of Life) Bill – the bill to legalise assisted dying in England and Wales – fell at the close of the 2024-2026 parliamentary session, after running out of time in the House of Lords. Attention has now shifted to whether the bill could return in the next session and, if so, whether it could be enacted using the procedures set out in the Parliament Act. This briefing explains the Parliament Act procedure, examines previous uses of the Act and the procedural lessons that may be drawn from them, and looks at the constitutional issues involved.

News / What now? The local election fallout hits Westminster - Parliament Matters podcast, Episode 141

Labour’s disastrous local election results have intensified speculation about Keir Starmer’s future. But if pressure on the leadership continues to grow, how exactly do Labour’s leadership rules work – and what would it take to mount a serious challenge? Now that the Scottish and Welsh elections are over, attention will turn to governing. How do the devolved parliaments return to business? And in Wales, where the Senedd will install a non-Labour First Minister and government for the first time in its history, how will the process work? Could a new administration trigger fresh tensions with Westminster and Whitehall? Listen and subscribe: Apple Podcasts · Spotify · Acast · YouTube · Other apps · RSS

News / Dynamic alignment and Henry VIII powers: What will the Government’s EU reset mean for Parliament? - Parliament Matters podcast, Episode 139

A major “EU reset” bill could allow Ministers to dynamically align UK law with EU rules using so-called Henry VIII powers, raising fresh questions about Parliament’s role and scrutiny. We are joined by Professor Catherine Barnard to explore the trade-offs and implications. We also examine Parliament’s surprise block on Church of England governance reforms and ask whether shutting down Parliament for a two-week prorogation – when it cannot be recalled – is wise in an increasingly unstable world. Listen and subscribe: Apple Podcasts · Spotify · Acast · YouTube · Other apps · RSS

Submissions / Written Parliamentary Questions - Our evidence to the House of Commons Procedure Committee

The use of Written Parliamentary Questions (WPQs) is rising sharply. Since July 2024, MPs have tabled questions at unprecedented levels. By late 2025 MPs were tabling over 600 per sitting day, more than double the long-term average. WPQs are a cornerstone of parliamentary scrutiny, helping MPs obtain information, challenge government policy and put issues on the public record. But this surge raises important questions about how Parliament balances transparency and accountability with the practical limits of the system. The House of Commons Procedure Committee is now examining the issue and has just published our submission containing our latest data and analysis.