What are Estimates? What are the Government's spending plans?

Publications / Guides

What are Estimates?

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

Consideration of Estimates happens at least once a year (between April and July, with respect to the Main Estimates), but more usually twice (between February-March with respect to the Supplementary Estimates). Select Committees can scrutinise each departmental Estimate, and MPs collectively debate and scrutinise them on Estimates days.

Once the Estimates have been debated, the House of Commons must consider a Supply motion. If the House approves the motion, then the Supply Resolution that results paves the way for a Supply and Appropriation Bill. Once this Bill is passed, it legally authorises the expenditure as set out in the Estimates.

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.

Treasury rules define the spending categories contained in the Estimates. Each departmental Estimate is made up of three key parts.

The ambit

This is the high-level description of what the money will be spent on in each department. If a department spends money outside the scope of the ‘ambit’ approved by Parliament, then that spending is unauthorised and therefore illegal. In such circumstances a department will require a Statement of Excess to provide retrospective approval for the spending.

Departmental expenditure limits (DELs)

These cover net spending, subject to the limits set out in the Spending Review process, in areas of activity that departments can generally forecast and over which they are therefore expected to exercise control. In each annual Estimate, the DELs are divided into two sub-categories:

Resource DEL, or current ‘day-to-day' spending: this includes, for example, costs for staff, purchasing goods and services, rents, maintenance and other administrative costs, depreciation and the sale of assets.
Capital DEL, or investment spending: this includes capital grants, loans, and the purchase, disposal or improvement of major assets.

Annually managed expenditure (AME)

This covers net spending in areas that are less predictable and therefore more difficult for departments to forecast and control:

Resource AME: this includes benefits, state pensions, and other welfare costs, as well as provision for liabilities.
Capital AME: this includes areas such as student loans.
Generally, departments cannot switch funds from DEL to AME, or from resource to capital spending categories, once the Estimate has been approved. However, within each category, a breakdown of proposed spending is provided, and this does not bind the government. Here, the government can vire money from one heading area to another, provided that neither the ambit nor the overall spending limit is breached.

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? 24-28 March 2025

Chancellor Rachel Reeves will deliver the Spring Statement on the public finances. MPs will debate the new Planning and Infrastructure Bill for the first time. The Committee scrutinising the assisted dying bill is expected to conclude its work. Ping-pong will continue between the two Houses on the National Insurance Contributions, Non-Domestic Rating, Great British Energy, and Terrorism (Protection of Premises) Bills. The House of Lords will continue considering amendments to the Bill abolishing hereditary peers. Both Houses will hold debates, and the Home Affairs Committee will take evidence, marking the tenth anniversary of the Modern Slavery Act.

News / Spring Statement: House of Commons tensions grow over the economy - Parliament Matters podcast, Episode 84

Political storm clouds are gathering over Chancellor Rachel Reeves’ Spring Statement. What does it mean for Parliament, party discipline and the Government’s economic credibility. We speak to Dr Marie Tidball MP about her first months in Westminster - and the accessibility challenges facing disabled MPs. Plus, why did Peers get a vote on postponing local elections, but MPs didn’t?

News / Assisted dying bill: Special series #9 - Parliament Matters podcast, Episode 85

In this ninth instalment of our special mini-podcast series, we continue to explore the latest developments in the progress of the Terminally Ill Adults (End of Life) Bill, often referred to as the assisted dying bill. We are joined by Dr Marie Tidball MP to discuss the amendments she has secured for a Disability Advisory Board and an independent advocate for people with learning disabilities.

Blog / Breaching the 0.7% international aid target: a case study in legislative failure

The Prime Minister’s plan to cut international aid breaches the Government’s legal duty to meet the 0.7% spending target, raising constitutional concerns. Should an Act allow for premeditated non-compliance? Can a statutory duty imposed on Government by Parliament be overturned by a ministerial statement? And when a law’s purpose is abandoned, should it be amended or repealed? The fate of this Act exposes the flaws in declaratory legislation, weak parliamentary scrutiny, and executive dominance of Parliament.

Briefings / The assisted dying bill: How does the amendment process work?

The assisted dying bill (Terminally Ill Adults (End of Life) Bill) is now at the Committee stage, where a Public Bill Committee reviews the bill clause by clause. This briefing outlines the Committee’s role, how MPs propose changes to the bill and where these are published, how the Chair selects and groups amendments, and how these are debated and voted on.