Explainers

Supply Estimates

Supply Estimates are the process UK Government departments follow to have legal authority to spend public money. They must be approved by the House of Commons.

Two Supply Estimates are voted each financial year: Main Estimates in the summer, and Supplementary Estimates towards the end of the financial year. To ensure the money to spend is not interrupted, a Vote on Account alongside a Supplementary Estimate authorises in advance some spending for the financial year ahead. 

Generally, Supply Estimates implement the spending plans set at either Spending Reviews or UK fiscal events (Budgets or Statements). However, there are other operational changes implemented at Supply Estimates. For example, a department may request funds from HM Treasury’s unallocated reserves and the claim may be granted. Or a department may cede some budget to another with a Budget Cover Transfer. 

Because Supply Estimates change spending plans, they also change the Scottish Government’s Block Grant via the Barnett formula. The Scottish Government will normally reflect these Barnett consequentials at Budget Revisions.