Confidence And Supply

Confidence And Supply are two mechanisms of government in England and countries which inherited our system. People are elected to represent constituencies. They form parties, which contend for majority status in order to form Her Majesty's Government. They have to have confidence and supply. Without it they fail. This requires Her Majesty's Prime Minister to ask Her to dissolve Parliament and call a General Election.

The first, confidence means being able to survive Motions Of No Confidence. The second means being able to pass an Appropriation Bill every year. It is somewhat different in the United Kingdom. A United Kingdom Budget is put before the Commons. A "Vote on Account" in early spring that provides continuity of funding into the new fiscal year, up until the point that the new budget is enacted as the Finance Act.

The budget or equivalent is an annual event. The no confidence motion happens when the opposition think they can pass it or they are being mischievous.

Confidence And Supply
In a parliamentary democracy based on the Westminster system, confidence and supply are required for a government to hold power. A confidence and supply agreement is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation (supply) votes by voting in favour or abstaining, while retaining the right to otherwise vote on conscience.[1][2]

Confidence
Main article: Motion of no confidence
In most parliamentary democracies, members of a parliament can propose a Motion of Confidence[3] or Motion of No Confidence in the government or executive. The results of such motions show how much support the government currently has in parliament. Should a motion of confidence fail, or a motion of no confidence pass, the government will usually either resign and allow other politicians to form a new government, or call an election.

Supply
Main articles: Appropriation bill and Loss of supply
Most democracies require an appropriation bill or something similar to be passed by parliament in order for a government to receive money to enact its policies. If an appropriation bill fails, the government loses control of the money supply, and is therefore virtually powerless. The failure of a supply bill thus has the same effect as the failure of a confidence motion. In early modern England, the withholding of funds was one of parliament's few ways of controlling the monarch.

Examples of confidence and supply deals
United Kingdom
Between 1977 and 1979, Jim Callaghan's Labour Party stayed in power thanks to a confidence and supply agreement with the Liberal Party, in a deal which became known as the Lib-Lab Pact. In return, the Labour Party agreed to modest policy concessions for the Liberal party.[4]

 

Motion Of No Confidence ex Wiki
A motion of no confidence (alternatively vote of no confidence, censure motion, no-confidence motion, or (unsuccessful) confidence motion) is a statement or vote that a person or persons in a position of responsibility (government, managerial, etc.) is no longer deemed fit to hold that position: perhaps because they are inadequate in some respect, are failing to carry out obligations, or are making decisions that other members feel are detrimental. As a parliamentary motion, it demonstrates to the head of state that the elected parliament no longer has confidence in (one or more members of) the appointed government.

A censure motion is different from a no-confidence motion. Depending on the constitution of the body concerned, "No Confidence" may lead to compulsory resignation of the council of ministers or other position-holder(s), whereas "Censure" is meant to show disapproval and does not result in the resignation of ministers. The censure motion can be against an individual minister or a group of ministers, but the no-confidence motion is directed against the entire cabinet. Again, depending on the applicable rules, censure motions may need to state the reasons for the motion while no-confidence motions may not require reasons to be specified.

 

Appropriation Bill ex Wiki
An appropriation bill or running bill or supply bill is a legislative motion (bill) that authorizes the government to spend money. It is a bill that sets money aside for specific spending.[1] In most democracies, approval of the legislature is necessary for the government to spend money.

In a Westminster parliamentary system, the defeat of an appropriation bill in a parliamentary vote generally necessitates either the resignation of a government or the calling of a general election. One of the more famous examples of the defeat of a supply bill was the 1975 Australian constitutional crisis, when the Senate, which was controlled by the opposition, refused to approve a package of appropriation and loan bills, prompting Governor-General Sir John Kerr to dismiss Prime Minister Gough Whitlam and appoint Malcolm Fraser as caretaker Prime Minister until the next election (where the Fraser government was elected).

 

United Kingdom Budget ex Wiki
The United Kingdom budget is an annual budget set by HM Treasury for the revenues to be gathered by HM Revenue and Customs and the expenditures of the public sector, in compliance with government policy.[1]

Budgets are usually set once every year and are announced in the House of Commons by the Chancellor of the Exchequer. The last budget was on Wednesday 16th March 2016.

Budget process
The UK fiscal year termed the "financial year", ends on 31 March of the following calendar year. Thus, the UK budget for financial year 2011 would cover the period from 1 April 2011 to 31 March 2012 and is often referred to as 201112.

The budget is usually released in March, less than one month before the beginning of the new fiscal year. Parliament is not expected to take action on a budget for the fiscal year until the summer, several months after the start of the fiscal year. For that reason, Parliament typically passes a "Vote on Account" in early spring that provides continuity of funding into the new fiscal year, up until the point that the new budget is enacted. The spending authorized in the Vote on Account is normally 45% of the amounts already authorized in the current fiscal year, taking into account the Main Estimates and any revised or Supplementary Estimates already approved by Parliament.[2] Legislative action on the proposed budget generally aligns with the executive's original budget request, since the Prime Minister's cabinet tends to exert significant control over Parliament (the Prime Minister must have a majority in the House of Commons to retain power).

Governmental departments submit their funding requests  called "Main Supply Estimates" to HM Treasury. The government then releases this data in a large consolidated document titled "Central Government Supply Estimates (Budget Year-Following Year): Main Supply Estimates" [3]

The government reserves the right to submit "Supplementary Estimates" in the spring and winter of a given fiscal year to update its agencies' spending totals for the current financial year and report any governmental re-organizations. When an agency submits a Supplementary Estimate, it is customary to also submit an "Estimate Memorandum" to the agency's relevant oversight committee in Parliament describing and justifying the changes. This condenses two functions reporting supplemental spending requests and agency re-organizations.

 

Finance Act ex Wiki
Finance Act refers to the headline fiscal (budgetary) legislation enacted by the UK Parliament, containing multiple provisions as to taxes, duties, exemptions and reliefs at least once per year, and in particular setting out the principal tax rates for each fiscal year.

Overview
In the UK, the Chancellor of the Exchequer delivers a Budget speech on Budget Day, outlining changes in spending, as well as tax and duty. The changes to tax and duty are passed as law, and each year form the respective Finance Act. Additional Finance Acts are also common and are the result of a change in governing party due to a general election, a pressing loophole or defect in the law of taxation, or a backtrack with regard to government spending or taxation. However a repeal order can also be made by statutory instrument.[1]

The rules governing the various taxation methods are contained within the relevant taxation acts. Capital Gains Tax legislation, for example, is contained within Taxation of Chargeable Gains Act 1992. The Finance Act details amendments to be made to each one of these Acts. The main taxes are Excise Duties; Value Added Tax; Income Tax; Corporation Tax; and Capital Gains Tax.