Select Committee on Procedure First Report


1 Introduction

1. In January 2004, Mr Paul Boateng MP, the Chief Secretary to the Treasury, circulated proposals relating to the Estimates and Appropriation procedure to four select committees, namely the Liaison Committee, the Committee of Public Accounts, the Treasury Committee and this Committee. These proposals include responses to points raised by some of the Committees in correspondence which followed an initial letter from the Chief Secretary in September, and are reproduced as Appendix 1. In addition, the Committees have received a paper from Mr Douglas Millar, the Clerk Assistant, evaluating the Treasury's proposals and suggesting some other complementary changes to procedure. This paper is reproduced as Appendix 2. In summary, the proposals are:

a)  There should normally be two Appropriation Acts each session, instead of one;

b)  Supplementary Estimates should, in certain circumstances, be able to propose reductions, as well as increases, in amounts previously authorised;

c)  The current requirement for Estimates to be presented seven clear days (in effect, eight days) before they are voted on in December and March should be changed to fourteen days;

d)  Minor changes to Supply motions (motions approving Estimates) should be made to reflect the fact that appropriations in aid[1] are authorised in Appropriation Acts;

e)  There should be a standard template for the introduction to a Supplementary Estimate, listing the changes proposed; and departments should send memoranda about Estimates to the relevant select committees.

2. We examine these proposals in the following sections of this Report, and (with a few small qualifications) commend them to the House. We note also that the Treasury Committee passed the following Resolution on 27 January:

That the proposals in the letter of 13 January 2004 from the Chief Secretary to the Treasury (plus Annexes) and the Memorandum by the Clerk Assistant of 19 January 2004, for changes to the House's Supply procedures and the Estimates, be agreed, except for the proposal at page 3 of Annex B to the Chief Secretary's letter that changes to Departmental Expenditure Limits should no longer be notified to the House in written statements.

and the Chairmen of the Committee of Public Accounts and of the Liaison Committee wrote on 4 and 23 February respectively to the Chief Secretary (see Appendices 3 and 4). These letters are generally supportive of the proposals, and we mention particular points made in them at the appropriate places in this Report.

3. In his letter,[2] the Chief Secretary suggested that if the Committees approved the proposals by 12 February, it might be possible to implement the proposal for a second Appropriation Act during the current year. We have not been able to meet this deadline, but hope that, if the House approves our recommendations, the necessary changes can be made in good time for next year. The changes to standing orders and the other proposals can probably be implemented sooner.


1   An Appropriation in Aid is income which a department is authorised to apply towards some activity, thereby reducing the amount to be financed by the Estimates. Income not authorised as an Appropriation in Aid has to be surrendered to the Consolidated Fund. Back

2   Appendix 1, para 3. Back


 
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