Explanatory Notes

Parliamentary approval for financial costs or for charges imposed

615 A money resolution and a ways and means resolution are required for the Bill. A money resolution is required where a Bill gives rise to, or creates powers that could be used so as to give rise to, new charges on the public revenue (broadly speaking, new public expenditure). A ways and means resolution is required where a Bill creates or confers power to create new charges on the people (broadly speaking, new taxation or similar charges).

616 In terms of expenditure, certain clauses in the Bill contain the power to do anything that an Act of Parliament can do and an Act can authorise any type of expenditure, charges on the Consolidated Fund or the National Loans Fund or other charges on the public revenue. In addition, the Bill also amends section 8 of the EU (Withdrawal) Act 2018 which already contains such a power. The Bill also makes provision that will impact on existing statutory provision that involves expenditure. For instance, the savings for the purposes of the implementation period in new sections 1A and 1B of the EU (Withdrawal) Act 2018 and the modifications to the existing saving and incorporation of EU-related law in sections 2 to 4 of that Act.

617 There may also be potential expenditure by Ministers of the Crown, government departments or relevant devolved authorities under the delegated powers in the Bill. This is particularly likely where a power enables the creation of a new scheme relating to residence. More details of expenditure that could be incurred by the delegated powers in the Bill is set out above in the ‘Financial Implications of the Bill’ section of these notes.

618 Clauses 21 and 22 contain powers to do anything an Act can do, which could be exercised to increase or impose taxation or other charges on the people. Once again, the Bill makes provision that will impact on existing statutory provision that involves taxation or other charges. In addition, there are provisions in the Bill that confer powers to create new charges on the people. The fee charging power in clause 28 extends the ambit of Schedule 4 to the EU (Withdrawal) Act 2018 so that it will operate in relation to functions conferred by the powers in clauses 18, 19, 21 and 22. Schedule 4 of the EU (Withdrawal) Act 2018 allows fees to be charged that go beyond pure cost recovery. In addition clause 20 requires sums received by UK Ministers or the UK government departments by virtue of the Withdrawal Agreement to be paid into the Consolidated Fund or the National Loans Fund.

 

Prepared 19th December 2019