Publications / Guides

How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process

The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar
The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. ©HM Treasury / Zara Farrar

What is the Budget?

In order to raise income, the government needs to obtain approval from Parliament for its taxation plans. The Budget is the means by which the House of Commons considers the government’s plans to impose 'charges on the people' and its assessment of the wider state of the economy.

The Budget is usually held on a Wednesday after Prime Minister’s Questions and is usually followed by four days of debate in the House of Commons. The Budget process has four key parliamentary stages: the financial statement; the Budget debate; the Budget resolutions and the Finance Bill.

Read the guide
Tulip Siddique MP in the House of Commons Chamber, 8 June 2022. ©UK Parliament / Jessica Taylor

How do MPs scrutinise the Budget?

The Financial Statement is usually followed by four days of debate on the Budget. The debate enables MPs to consider the government’s proposals for charges, the role that these charges play in the context of the tax system as a whole, and whether the revenue raised is sufficient given the government’s expenditure plans.

Read the guide
Tellers at the table of the House of Commons announcing the result of a division. ©UK Parliament / Jessica Taylor

How do MPs approve the Budget?

MPs agree a Provisional Collection of Taxes motion which provides provisional authority for changes in taxes and duties that the government proposes should take effect on Budget day or soon after. Dozens of Ways and Means resolutions are also required to provide parliamentary authority for individual tax measures.

Read the guide
Shadow Chancellor Rachel Reeves MP speaking in the House of Commons Chamber, 23 March 2022. ©UK Parliament / Jessica Taylor

Can MPs amend the Budget?

MPs can propose amendments only to the first Budget motion. Any of the other Budget motions can be voted upon but they cannot be amended. Under Standing Order No. 51(3) where there is a series of motions the second and subsequent motions have to be put ‘forthwith’ – that is, without amendment or debate.

Read the guide

What is the Finance Bill?

The government’s taxation plans, as set out in the Budget, require statutory (that is, legislative) authority. The Finance Bill provides this. Once the Budget resolutions have been agreed by the House of Commons at the end of the Budget debate, these ‘charging’ or ‘founding’ resolutions form the basis of the Finance Bill.

Read the guide
Prime Minister Rishi Sunak MP in the House of Commons Chamber, 1 March 2023. ©UK Parliament / Jessica Taylor

What principles and rules govern the Budget process?

Parliament’s scrutiny and authorisation of the government’s taxation plans is fundamental to the political system. As the public’s representative body, it is Parliament’s responsibility to hold government to account – between elections – for the money it raises and spends.

Read the guide

Last updated and citation

8:15pm, 11 March 2023

Cite this page

Hansard Society (2022), How does Parliament authorise the Government's taxation plans? A procedural guide to the Budget process, (Hansard Society: London)

Latest / Highlights

News / Parliament Matters Bulletin: What's coming up in Parliament this week? 18-22 November 2024

MPs will debate creating an independent Armed Forces Commissioner to support service members and their families. Five Cabinet Ministers and the Bank of England Governor are among those giving evidence to Select Committees. Peers will consider the Product Regulation and Metrology Bill in Grand Committee. MPs will consider the £2.26 billion Financial Assistance to Ukraine Bill, funded by frozen Russian assets. The House of Commons will also debate Strategic Lawsuits Against Public Participation (SLAPPs).

17 Nov 2024
Read more

Webinars / The Assisted Dying Bill: Making sense of the parliamentary process

The Assisted Dying Bill is a Private Member’s Bill (PMB). Although the legislative stages for PMBs are the same as for Government bills, the rules that apply are different, creating distinct procedural hurdles that PMBs must navigate. Join us for this online discussion to learn more from our panel of impartial experts about the parliamentary process affecting this Bill. If you are unable to join us for the live event, a recording will be made available the following day. 6:00pm - 7:15pm, Tuesday 26 November 2024 Online via Zoom or post-event recording (Tickets: £10)

26 Nov 2024
Read more

News / The Assisted Dying Bill: Is more parliamentary time needed? - Parliament Matters podcast, Episode 55

Could one of the most consequential Private Members’ Bills in nearly fifty years - the Terminally Ill Adults (End of Life) Bill, which seeks to legalise assisted dying - be stopped not due to its content but because MPs fear they won’t have time to scrutinise it properly?

15 Nov 2024
Read more

News / The Official Opposition: how to be effective in Parliament - Parliament Matters podcast, Episode 54

Following Kemi Badenoch’s election, this episode explores the challenges she faces as the new Leader of the Opposition. What does it take to build an effective Opposition? What strategic decisions, policy initiatives, and personnel choices must she navigate? What resources and procedural tools can she use to challenge the Government and build a compelling public profile? How does she balance party cohesion with presenting a credible alternative government and preparing for future elections?

12 Nov 2024
Read more

News / Urgent Questions: Answering your questions about how Parliament works - Parliament Matters podcast, Episode 52

In this episode, we discuss a variety of intriguing questions from listeners about the traditions and inner workings of Parliament. Topics include conduct in the Commons chamber, the practice of whipped votes, the origins of the Private Members' Bill ballot, and the unusual presence of ministers on select committees. We also discuss why MPs often refer to question numbers rather than asking questions directly in the Chamber, and consider the prospects for a future House of Lords committee dedicated to scrutinising EU-related issues affecting Northern Ireland.

06 Nov 2024
Read more

Categories

Themes

Contact

Legal

Fundraising Regulator logo