2017/18 Main Estimates: Overview of Government Spending Plans for 2017/18 This document provides help for Members and staff to better understand the SPENDING PLANS OF THE GOVERNMENT, which were voted on by Parliament through the Main Estimates in July 2017. Briefing on each Department If you have any questions, comments, feedback on this document’s usefulness SCRUTINY UNIT or otherwise, and any suggestions for inclusion in a future year’s edition, please Strengthening scrutiny through specialist support contact Larry Honeysett in the Scrutiny Unit [email protected] What are the Main Estimates? Main Estimates are the government’s spending plans for each department for 2017-18, which have been developed from 2015’s Spending Review, which planned spending for the four years 2016-17 to 2019-20 The Spending Review announced the headline spending totals for each Department for each of the next four years, including a few specific commitments. Further detail of the breakdowns of planned spending within the totals for these four years was first published in each Department’s 2015-16 Annual Reports & Accounts Main Estimates List of all departments explained SPENDING REVIEW October 2015 How do departments get their funding? Spending Review settlement sets DEPARTMENTAL SPENDING TOTALS (DELs) VOTE ON ACCOUNT March 2016 for 2016-17 to 2019-20. Decisions on changes to benefits designed to make FUTURE SAVINGS (AME). Parliament votes each Department an BARNETT CONSEQUENTIALS for next four years calculated for Scotland, Wales advance of funds for the first four months of and Northern Ireland. the year based on last year’s spending totals THE BUDGET March 2017 “The Divvy Ups” Further changes to future taxes and spending. The Departmental Ministers consider PRIORITIES, how to Finance Bill enacts tax changes; spending changes are make EFFICIENCY SAVINGS and how to SHARE OUT enacted instead through ESTIMATES (see below). each Department’s budget MAIN ESTIMATES April 2017 Detail of 2017-18 plans , by spending programme, are published in MAIN ESTIMATES 2017- 18. This included any changes affecting 2017-18 spending announced in the March Budget. Block grant totals for Scotland, Wales and Northern Ireland set. Decisions on spending choices SUPPLEMENTARY are for relevant Parliaments. ESTIMATES February 2018 Departments provide a memorandum explaining the content of the Main Estimate. An incoming government may choose to withdraw and replace individual Estimates before they Later in the year Departments are voted upon (i.e. present “Revised Estimates”) publish SUPPLEMENTARY ESTIMATES, showing proposed changes to in- year budgets. In absence of committees, No ESTIMATES DAY These will be voted upon in CommitteesScrutiny Unit briefed provideson following General Election, DEBATES because of contentbriefing of on Main Estimates Estimates for there is little opportunity General Election March 2018 2016Members,-17 by for Scrutiny information Unit for scrutiny before (this is what you are now (this is what you are now Estimates are authorised reading)reading) Main Estimates expected to be June 2017 approved by the House July 2017 Main Estimates List of all departments explained What is the current role of the House and Select Committees in considering Estimates? The formal process of considering Main Estimates in the House is currently relatively restricted Only two Main Estimates are selected for debate - and possible downward amendment - on the floor of the House. (in Election years, such as 2017, debates do not normally occur) The subject of the debate is usually based on a select committee report- this can limit the scope of the debate considerably Other Estimates are approved without debate or the possibility of amendment However, Committees have a “core task” of examining the spending and performance of departments Examples of how they might exercise this: Calling Ministers or officials to appear Drawing on information in the Writing to departments to discuss spending and priorities Estimates as part of current questioning any issues arising outlined in the Main Estimate Committee inquiries from the Estimate The House of Commons Scrutiny Unit is there to assist Committees in this work. Scrutiny Unit staff can also provide oral briefing to Committees or committee members on the Estimates or other financial matters on request. Contact Larry Honeysett [email protected] for more information. Main Estimates List of all departments explained Proposed reforms to the way Government spending plans are authorised: Main recommendations by Procedure committee (Apr 17): Estimates Day Debates CLICK HERE to read Procedure Committee report Estimates day debates in future to be selected by Backbench Business committee (BBCom) and to focus on Estimates, rather than Select committee reports. BBCom to offer compensating days for Select committee report debates Devolved Spending At least one Estimates debate slot a year to be devoted to devolved spending, or UK spending that affects Barnett consequentials. The calculations that determine Barnett consequentials (block grant to devolved Parliaments) to be better explained Estimates Documentation The Government should improve Estimates documentation making it easier to understand, and make Estimates data available electronically Timeline The Government should provide more time between publication and consideration of Estimates, and allow Parliament to consider and have time to authorise spending plans before the new year starts Main Estimates List of all departments explained Proposed reforms to Government accounts: Main recommendations by PACAC (Apr 17): CLICK HERE to read PACAC report What are the goals of publishing Accounts? Accounts are primarily there to be credible records of the value for money and Parliamentary accountability of Government Departments. Assessing Value for Money Accounts should tell us how much major Supporting UK Parliament projects, programmes and services cost Accounts should tell us whether the government has met Accounts should provide audited performance commitments to spend or save made by ministers information about major projects, programmes and Accounts should reconcile the eventual spending and services income to the spending and income forecast in the Departments should present the previous five Spending Review as well as the Estimates years of spend in their accounts and a Departments should consult with the relevant select forecast to the end of the spending review committee about the contents of the accounts including about how expenditure should be segmented and what information they would like to see Publication standards Accounts should follow open data standards on publication and should be published in an easy to use format like excel - not PDF! Departments should publish unaudited updates to their plans (Single Departmental Plans) on a quarterly basis Main Estimates List of all departments explained Departments (click on the link to view slides for each department): Cabinet Office Sources Business, Energy and Industrial Strategy Communities and Local Government Culture, Media and Sport Education Environment, Food and Rural Affairs Exiting the EU Foreign and Commonwealth Office Health Home Office International Development International Trade Ministry of Defence Ministry of Justice Transport Work and Pensions Treasury and HMRC Devolved Administrations: Scotland Wales Northern Ireland Main Estimates List of all departments explained Cabinet Office Main Estimates List of all departments explained Cabinet Office: 2017/18 Day-to-day spending by area: (Resource Departmental Expenditure limit, cash terms) The Cabinet Office has lost a significant segment of its activities which accounted for 49% of its budget in the Spending Review settlement for this year Elections (mainly the Office for Civil Society). £4.8m Arms Length Bodies European Parliament £2.9m £2.8m Maintain the integrity of the Union Ensuring the effective running of the £91.4m £61.9m department £46.7m Ensuring the delivery of the Total Day-to-day Spending: Government’s programmes £361m and the PM’s priorities £150.6m Improving the efficiency and responsiveness of government Main Estimates List of all departments explained CABINET OFFICE Cabinet Office: significant movements of funds (Resource Departmental Expenditure limit, cash terms) -£3.7m: -£284.4m: Transfer of the Great Transfer of the Office of the Civil Society to DCMS Campaign to DIT (Machinery of government changes) (Machinery of government changes) +£8.19m: Extra funds from the Treasury for the transfer of Infrastructure UK to merge with the Major -£4.74m: Projects Authority Transfer of the Global Affairs Secretariat to DExEU (Machinery of government changes) +£30m: Transfer from MOD to support the National Security Secretariat, Joint Intelligence Organisation, Cabinet Office briefing rooms Main Estimates List of all departments explained CABINET OFFICE Cabinet Office managing activities of other departments: This often has a larger financial impact than the Cabinet Office’s own budgets would indicate. The Crown Commercial Service in 2015-16 managed £2.5bn of spend directly. A further £12.8bn was spent by the public sector on common goods and services using Crown Commercial Service frameworks in 2015-16. NAO Crown Commercial Service January 2017 The Cabinet Office is responsible for the Shared Services Centre Programme. The Cabinet Office in 2015-16 estimated that the centres would contribute to £484m of savings at a cost of