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 / Will Parliament pay a price for promises to WASPI women? - Parliament Matters podcast, Episode 61

As Christmas approaches, Westminster eases into its pre-festive lull. Yet, a major political storm clouds the year’s end: the fallout from the Government’s decision not to compensate the WASPI women. This controversy highlights a recurring dilemma in politics—the risks of opposition parties over-promising and the inevitable backlash when those promises confront the harsh realities of governing. And as a seasonal stocking filler, Ruth and Mark talk to the authors of two fascinating books that uncover hidden aspects of parliamentary history.

News / Parliament Matters Bulletin: What's coming up in Parliament this week? 16-20 December 2024

MPs will review five bills, including the Water (Special Measures) Bill, and debate two e-petitions on Israel and Palestine, including one on halting arms exports to Israel which may raise sub judice concerns. Six Select Committees will see membership changes following front bench reshuffles, and Peers will consider proposals for four new inquiry committees for 2025. The Defence Committee Chair will raise concerns about poor service accommodation, while Angela Rayner, Yvette Cooper, Shabana Mahmood, Wes Streeting and Michael Gove face Select Committees.

Briefings / The Assisted Dying Bill: A guide to the Private Member's Bill process

This briefing explains what to watch for during the Second Reading debate of the Terminally Ill Adults (End of Life) Bill on 29 November. It outlines the procedural and legislative issues that will come into play: the role of the Chair in managing the debate and how procedures such as the 'closure' and 'reasoned amendments' work. It looks ahead to the Committee and Report stage procedures that will apply if the Bill progresses beyond Second Reading. It also examines the government's responsibilities, such as providing a money resolution for the Bill and preparing an Impact Assessment, while addressing broader concerns about the adequacy of Private Members’ Bill procedures for scrutinising controversial issues.

News / Licence to scrutinise: spooks, hereditary peers and assisted dying - Parliament Matters podcast, Episode 60

In this week’s episode the ‘assisted dying’ bill takes centre stage as the newly chosen members of the Public Bill Committee gear up for detailed scrutiny of the legislation. With 23 members, including two ministers, this committee promises a mix of seasoned voices and first-time MPs debating a very difficult issue. We are joined by Hansard Society researcher, Matthew England, who breaks down the committee’s composition, party balance, and the strategic dynamics that will influence the bill’s trajectory.

News / How a British student has schooled the US Congress - Parliament Matters podcast, Episode 58

In this special episode, we dive into the fascinating world of US congressional procedure with Hansard Society member Kacper Surdy, the once-anonymous force behind the influential social media account @ringwiss. Despite being a 20-year-old Durham University student, Kacper has become a go-to authority on Capitol Hill’s intricate rules, earning the admiration of seasoned political insiders. With Donald Trump hinting at bypassing Senate norms to appoint controversial figures to his cabinet, Kacper unravels the high stakes procedural battles shaping Washington.