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
| 
