Secretariats website
Last updated: 08 July 2009
26.1 Both types of Resolution are normally moved immediately after Second Reading and any ensuing Programme Motion.
26.2 If a Bill creates a charge upon certain public funds, either by way of new or increased expenditure or by remission of debt, all the provisions in the Bill involving the charge must be authorised by a resolution of the House of Commons known as a Money Resolution. The House authorities decide in consultation with Parliamentary Counsel if a Money Resolution is required. Parliamentary Counsel will draft the Resolution, seeking instructions from the department as necessary.
26.3 The Resolution can only be moved by a Minister (reflecting the Crown's exclusive right to initiate proposals for expenditure) and must be taken before the beginning of the Committee stage (it is normally taken immediately after Second Reading and any Programme Motion). The reason for this is that, though the charging provisions can be debated on Second Reading, the Chairman of the Committee on the Bill cannot put the question on them unless they have been covered by a Money Resolution. To mark this fact, the charging provisions are printed in italics in the Bill as first printed in the Commons.
26.4 If a Bill proposes new expenditure, the Commons will require proof that the proposal is recommended by the Crown. This is achieved by including the words “Queen's recommendation signified” in the heading to the Money Resolution (this is different to Queen's Consent, which is required where Her Majesty's own prerogative or interests are directly affected by the Bill). Before accepting the text of a proposed money resolution for tabling, the Public Bill Office requires express confirmation from Parliamentary Counsel that the Financial Secretary to the Treasury has approved the text. Counsel will therefore wait until s/he has received a copy of the draft money resolution initialled by the Financial Secretary before handing it in to the Public Bill office. A Treasury Minister other than the Financial Secretary can signify approval if necessary.
26.5 Private Members' Bills which create a charge on public funds will also require a Money Resolution which will be debatable for up to 45 minutes. Although it is not obliged to, the Government will usually table a motion for such a Resolution for Bills which have received a Second Reading and provide time for it to be debated, regardless of whether Government supports the Bill.
26.6 Though appearing in the name of the Financial Secretary, the Resolution is moved by the Minister in charge of the Bill, if it is to be debated, or by a Whip, if it is taken forthwith. If the Money Resolution is taken immediately after Second Reading, there is no debate (because Second Reading will itself have provided the opportunity for debate) and the question is put forthwith. A Money Resolution moved on a later day (such as for a Private Members' Bill) may be debated for up to 45 minutes and the Bill team will need to prepare briefing for the Minister.
26.7 The three kinds of point most likely to be raised in such a debate, and which the Minister's brief should anticipate, are:
26.8 Amendments to the Money Resolution itself are very occasionally put down, and, if the Money Resolution is debatable, the Bill team will need to prepare notes on amendments for the Bill Minister. A Private Member's amendment to a Money Resolution is out of order if it would have the effect of increasing the charge on public funds authorised by the Resolution.
26.9 Amendments which lack the necessary sanction of a Money Resolution will be ruled out of order. If the department later wishes to put down amendments which entail expenditure not covered by the original Money Resolution, or a Bill is returned from the Lords with such amendments, a new Resolution (and debate) will be required before the House or Committee can consider such amendments.
26.10 A Ways and Means Resolution of the House of Commons is needed if a Bill contains a provision imposing ‘charges upon the people’ – a term which may not include levies, charges or fees which are not akin to taxation – granting borrowing powers to the Crown or providing for the payment of receipts not arising from taxation into the Consolidated Fund or the National Loans Fund. This is distinct from a Money Resolution which is primarily concerned with expenditure. The need for a Ways and Means Resolution is decided by the House authorities in consultation with Parliamentary Counsel. Parliamentary Counsel will draft the resolution, seeking instructions from the department as necessary.
26.11 A Ways and Means Resolution will be required if one of the purposes of the Bill is to raise money or if the only “money” in the Bill comes from a provision requiring payment into the Consolidated Fund. However, where the sums to be paid into the Consolidated Fund are incidental to a specific project involving expenditure (e.g. fees or incidental receipts of the administering department) a paragraph dealing with the payments into the Consolidated Fund is usually included in the Money Resolution covering the expenditure under the Bill.
26.12 Where the primary purpose of the Bill is to raise money, the necessary Ways and Means Resolution is taken before First Reading and the Bill is ordered in on the Resolution like a Finance Bill.
26.13 In other cases the procedure for a Ways and Means Resolution is similar to that for a Money Resolution. If there is also a Money Resolution, the Ways and Means Resolution is normally taken immediately after the Money Resolution, which, as noted above, will normally be immediately after Second Reading and any Programme Motion relating to the Bill. If there is a need for a Ways and Means Resolution at a later stage, a separate 45-minute debate must take place on the motion for that Resolution.
26.14 Amendments which lack the necessary sanction of a Ways and Means Resolution will be ruled out of order.
Lords amendments requiring a new Money or Ways and Means Resolution
26.15 In most cases the Commons are able, if they wish, to agree to Lords amendments that infringe their financial privilege; but there have been cases where an infringement has been so significant that the Speaker has regarded it as “unwaivable”.
26.16 Where amendments involve financial matters that are not covered by a previous Money Resolution for the Bill, the amendments will automatically be treated as disagreed to on grounds of privilege unless a further Resolution covering the amendments is agreed before the amendments are considered.
26.17 Similarly, where amendments involve financial matters that are not covered by a previous Ways and Means Resolution for the Bill, the Minister will be called upon by the Speaker to move a motion to disagree to the amendments unless a further Resolution covering the amendments is agreed before the amendments are considered.
26.18 Even if the Government intends to oppose the amendments in question, it may well be appropriate to table a further Resolution to enable the amendments to be considered, rather than to rely on a technicality. And it will be essential to table a further Resolution if the Government wants not only to oppose the amendments but also to offer an amendment in lieu (even one not requiring a further Resolution).
1 Erskine May's Treatise on the Law, Privileges, Proceedings and Usage of Parliament. Note that it is always best to consult your Parliamentary Counsel on the Bill: the last edition of Erskine May (2004) is now rather out of date.