Overview

The Supply and Appropriation (Main Estimates) Bill 2012 authorises government spending and the use of resources for the financial year ending 31 March 2013. It sets out the amounts the government can spend and how that money will be allocated across different departments.

Description

This bill authorises a total of £287.6 billion in resource spending for the year 2012-13. This is broken down into £261 billion for current spending (day-to-day operations) and £26.6 billion for capital spending (investment in infrastructure and assets). It also authorises the Treasury to issue up to £252.9 billion from the Consolidated Fund to cover this expenditure.

The bill details how this money is appropriated to specific government departments. A schedule lists each department, along with planned resource and capital spending and net cash requirements.

The bill also includes provisions for how government departments can use income received during the year, with various rules for its appropriation depending on the department and source of the income. The bill clarifies that all money received by departments must be paid into the Consolidated Fund, except where specifically authorized otherwise.

Importantly, the bill declares that all appropriations within it are deemed to have been in effect since 1 April 2012.

Government Spending

The bill authorises a significant increase in government spending for the year 2012-13, totaling £540.5 billion when combined with earlier authorizations from the Supply and Appropriation (Anticipation and Adjustments) Act 2012. This includes £287.6 billion in newly authorized resource spending and £252.9 billion in new authorization for the issue of funds from the Consolidated Fund.

Groups Affected

The bill affects virtually all UK citizens and a wide range of organisations. The effects are numerous and depend on the department and programme:

• Citizens: May experience changes in public services depending on departmental spending. This includes social security benefits (DWP), health services (DH), education (DfE), and more.
• Government Departments: Will receive allocated funds for their operational costs and programmes.
• Public Sector Bodies: Many agencies and other bodies funded by the government will be affected by this bill's appropriations.
• Businesses: Businesses might be impacted through government contracts, regulations, and support schemes from various departments (e.g., BIS, DfT).
• Charities: Funding provided for their operations may be affected through several departments’ allocations.

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