Money bill

Definition

A money bill is a type of legislation that deals solely with national taxation or public expenditure. It must be introduced in the House of Commons and can only be amended or rejected by the House of Lords in very limited circumstances, emphasizing its significance in the legislative process regarding financial matters.

5 Must Know Facts For Your Next Test

1. Money bills are defined under the Parliament Acts 1911 and 1949, which specify their exclusive nature regarding taxation and public expenditure.
2. The House of Lords can only delay a money bill for one month before it must be passed without amendments, reinforcing the Commons' power over financial legislation.
3. Only members of the House of Commons can introduce money bills, ensuring that those directly elected by the public control national finances.
4. If a money bill is not passed by the House of Lords within a month, it automatically becomes law without needing further approval.
5. Money bills are essential for managing government budgets, funding public services, and shaping economic policy.

Review Questions

• How does the introduction and passage of money bills illustrate the relationship between the House of Commons and the House of Lords?
  • Money bills must be introduced in the House of Commons, highlighting its primary role in financial matters and its representation of the electorate's interests. The House of Lords can only delay these bills for one month without making amendments, emphasizing the supremacy of the Commons in fiscal legislation. This process demonstrates the balance of power in Parliament, where financial authority rests firmly with elected representatives while still allowing for scrutiny by the Lords.
• Evaluate the implications of restricting amendments to money bills for the legislative process in Parliament.
  • Restricting amendments to money bills streamlines their passage, allowing for quick approval necessary for timely government funding and financial management. However, this limitation also raises concerns about oversight and accountability, as it minimizes opportunities for debate and revision by the House of Lords. Such restrictions ensure that financial matters remain under democratic control while potentially sacrificing thorough examination of budgetary decisions.
• Analyze how the provisions regarding money bills reflect broader themes of democracy and governance within the UK political system.
  • The provisions surrounding money bills highlight key themes of democratic accountability and control over public resources in the UK political system. By mandating that only elected representatives in the House of Commons can introduce these bills, it reinforces the principle that taxation and expenditure should reflect the electorate's will. Furthermore, the limited role of the House of Lords in amending or delaying these bills underscores a commitment to swift governance on financial issues while balancing checks on power through parliamentary privilege and scrutiny.

Related terms

Public Bill: A public bill is a proposal for new legislation or changes to existing laws that applies to the general public, as opposed to private bills which affect specific individuals or organizations.

Royal Assent: Royal assent is the formal approval given by the monarch to a bill passed by Parliament, allowing it to become law.

Parliamentary Privilege: Parliamentary privilege refers to the legal immunity granted to members of Parliament, allowing them to speak freely during debates without fear of legal repercussions.