National Assembly
for Wales
Business
Committee
June
2017
Amending Standing Orders: Standing Orders 16, 19, 20 and 27 –
Budget Process and Finance Procedures
Purpose
1.
In
accordance with Standing Order 11.7(iv), the Business Committee is
responsible for making recommendations on the general practice and
procedures of the Assembly, including any proposals for the
re-making or revision of Standing Orders.
2.
The
report recommends amendments to Standing Orders 16, 19, 20 and 27
in relation to the Assembly’s budget process and finance
procedures. The changes agreed by Business Committee are found in
Annex A, and the proposals for new Standing Orders are at Annex
B.
Background
3.
The Wales Act 2014
gave the Assembly the ability to create new Welsh taxes, as well as
borrowing powers, necessitating some changes to the
Assembly’s budget process. On 15 November 2016 and 14
February 2017 the Business Committee considered proposals for a new
budget process for scrutiny of the financial powers contained in
the Wales Act 2014. Business Managers agreed to consider detailed
proposals for amending Standing Orders based on the outline
proposals presented.
4.
The proposals were based on the
recommendations of the Finance Committee of the Fourth Assembly,
adapted to fit a non-legislative process. Welsh Government and the
Assembly Commission collaborated on drawing up a procedure that
took into account the government’s response to the Finance
Committee recommendations.
5.
Following Business Committee’s
consideration of those initial proposals and agreement in
principle, further discussions were held between Welsh Government
and Assembly Commission officials on certain details. On 17 March
and 23 May 2017, Business Managers then considered draft proposals
for Standing Order changes to implement a new budget process. At
the latter meeting, the proposals were considered alongside both a
letter from the Finance Committee outlining its response to
consultation by the Business Committee on the draft, and a draft
protocol agreed between the Finance Committee and the Welsh
Government.
6.
Business Managers agreed some
changes to the original draft, based on the Finance Committee and
the Leader of the House’s comments, and the changes
subsequently agreed by the Business Committee are annexed to this
report.
Scope and Context
for Change
7.
The powers granted by the Wales Act 2014 necessitate
changes to the Assembly’s budget process to allow for
scrutiny of the devolved taxes and borrowing that will come on-line
in April 2018, i.e. in time for the 2018-19 budget scrutiny cycle.
The proposed changes to Standing Orders provide for a process to
reflect the provisions of the Act.
8.
The proposed budget process adapts the model suggested
by the Finance Committee’s Best Practice reports to fit with
the requirement in GOWA to have a budget motion, and for this to be
passed before the beginning of the financial year to which it
relates. It also takes account of recommendations made by the OECD,
which was independently commissioned to ‘stress test’
the developing proposals against its best practice principles for
budget transparency and reform, and international best practice. On
21 September 2016, the Finance Committee endorsed a preferred
option for a budget process, as a basis for discussion with the
Welsh Government, and the proposals reflect the outcome of
discussions from that point on.
9.
As the Fiscal Framework agreed by Welsh Government and
UK Government in December 2016 sets out the intention for the Welsh
Rate of Income Tax (WRIT) to be devolved to the Assembly from
2019/20, it also seemed sensible for the Business Committee to take
this opportunity to revise Standing Orders in readiness for that
change, and so proposed changes to allow for WRIT are also proposed
at this point though they will not be used for two
years.
10. The
budget process set out in Standing Orders will be accompanied by a
revised protocol between the Assembly and Welsh Government on
budget scrutiny by Assembly Committees. For the first time, it is
proposed that the protocol be referred to in the Standing Orders.
The budget process seeks to meet the principles set out by the
previous Finance Committee in its Best Practice Reports on the
budget process, whilst adhering to the current statutory
requirement for an Annual Budget Motion required by the Government
of Wales Act 2006 (GOWA).
11. In the
longer term, following Royal Assent to the Wales Act 2017, the
Assembly will also have competence over wider finance, audit and
accountability arrangements in the future, and be able to consider
moving to a legislative budget process. The Welsh Government
has previously agreed to consider introducing comprehensive
financial legislation, enabling the Assembly to move to an annual
budget bill cycle in the future. The Finance Committee informed the
Business Committee on 23 May 2017 that it will be undertaking a
piece of work to look at the possibility of moving to a legislative
budget process and what this would entail.
Proposed changes
to the budget process
12.
It is proposed to amend Standing Order 16.1 to include scrutiny of
all types of ‘financing’ within the scrutiny functions
of Committees, reflecting the Welsh Government’s new powers
to finance some of its own spending.
13.
It is also proposed to amend Standing Order 19, which sets out the
Finance Committee’s functions, to reflect the
Committee’s role in scrutiny of the Assembly’s new
powers over ‘financing’. A new Standing Order 19.5
defines ‘financing’ as including all possible sources
of funding of the draft budget that would be subject to
scrutiny.
14.
With new taxation and borrowing powers, the intention is that in
future the Finance Committee should focus its attention on higher
level strategic spending plans and the macroeconomic impact of
taxation decisions. Consequently, the scrutiny of the detailed
spending plans will fall to the other Assembly
Committees.
15.
The proposed changes to Standing Order 20 (Finance Procedures)
result in a process broadly based on the current one, but split the
draft budget proposals into ‘outline’ and
‘detailed’ stages to allow more time for committee
scrutiny, both of the high-level outline budget by the
‘responsible committee’ (the Finance Committee), and of
the detailed expenditure plans by other Assembly Committees. The
Finance Committee maintains an oversight and co-ordination role,
but the process also allows for early provision of the
Government’s detailed spending plans to give policy and
legislation committees as much time as possible for scrutiny and
reporting on the detail, including a good period for public
consultation.
Two-stage scrutiny
process
16.
In addition to the proposed changes to Standing Orders to reflect a
new process, a new Standing Order 20.1A is also proposed that
refers to the protocol agreed between the responsible committee
(Finance Committee) and the Welsh Government on budgetary matters.
The protocol is intended to complement the new Standing Order
provisions. As drafted, the provision leaves open the possibility
of the protocol being endorsed by the whole Assembly, but does not
make that a requirement.
17.
The proposed changes to Standing Orders 20.2-20.6 reflect the
change to a two-stage scrutiny process, where the outline budget
proposals and the detailed budget proposals, that
together constitute the draft budget, can be laid separately on
different dates (though there is nothing to stop them being laid at
the same time).
18.
The process for the Minister to notify the Business Committee of
the dates of publication, and for the Business Committee to then
publish a timetable (with the option to amend that timetable if
necessary), remains the same, except that it now reflects the move
to a ‘two stage’ scrutiny process by providing for two
separate deadlines to be set: one for the Finance Committee to
report on the outline proposals and one for other Committees
to report on the detailed proposals. A new heading above
Standing Order 20.7 – ‘Draft Budget Proposals’
indicates where the new two-stage process starts, and the wording
of Standing Order 20.7 itself is amended to reflect the new
tax-raising powers, and the fact that the government’s draft
budget proposals will now be broader than just setting out the
amounts of resources and cash. This Standing Order relates only to
the outline proposals.
Timetabling
19.The
proposed change to Standing Order 20.5 increases the number of
weeks given for scrutiny. Eight weeks is proposed as the
total amount of time for scrutiny of the outline budget in a normal
budget year, with five being the absolute minimum. The minimum for
other committees to report on the detailed proposals would always
be five weeks. A paragraph will be included in the associated
Budget Protocol agreed between the Finance Committee and the Welsh
Government to ensure that all information relevant to the draft
budget is published prior to the October half-term in all
cases. The protocol will
also set out some of the circumstances where the government might
expect to request less than eight weeks for scrutiny of the outline
budget, though the decision on the timetable will always be in the
hands of Business Committee.
Information
required at each stage
20.The
proposed new Standing Order 20.7A requires the government to
publish certain information at the same time as its outline budget
proposals, to aid scrutiny by Assembly Committees. The detail of
that accompanying information will be set out in the protocol
agreed between the Finance Committee and the Welsh
Government.
21.A
new Standing Order 20.7B then sets out the requirement for the
Welsh Government to lay its detailed budget proposals,
including the proposed budget
allocations within each Ministerial portfolio.
22.It
is also then proposed that the
wording
of Standing Order 20.8 is amended in line with the new two stage
scrutiny process. The statement on the draft budget would be made
after the outline proposals have been published.
Debate
on the Draft Budget
23.
Amendment to the
current Standing Order 20.9 – which sets out restrictions on
when a motion on the draft budget for the Government can be moved
in plenary - is also proposed in line with
the new
2-stage scrutiny process. As there are now two reporting deadlines
– for the Finance Committee and for other Assembly Committees
- the debate on the draft budget would happen after both these
deadlines have passed, and neither the Finance Committee, the
government nor anyone else could move a motion related to the draft
budget until that had happened.
24.It
is also proposed that Standing Order 20.10 – which recognises
the right of any Assembly Committee other than the
responsible
committee to
consider and report on the draft budget - is deleted. This is no
longer required, as scrutiny of detailed proposals by other
committees forms a core part of the new budget process.
Recommending changes
to the draft budget
25.Standing
Order 20.11 currently requires that any recommendation by the
responsible committee to change the amounts proposed in the draft
budget must have a zero-sum effect. It is proposed to change this
Standing Order to make clear that any changes must be ‘cost
neutral’ in that they either do not increase or decrease the
amounts involved, or if they do, they are balanced by a
commensurate change to the financing of the overall draft budget.
This change is proposed in order to recognise the new financing
powers, including powers to make changes to tax levels. This is
also reflected in a proposed consequential change to Standing Order
20.12 with regard to any amendment to the motion on the draft
budget.
The
Commission’s draft budget
26.A
small change to Standing Order 20.14 is proposed with regard to the
timing of scrutiny and reporting on the Commission’s budget
as part of the budget process. The former Presiding Officer wrote
to the Finance Committee Chair in the Fourth Assembly to suggest
that the Commission budget be reported on by 22 October, which is
three calendar weeks after the 1 October deadline for the
Commission to lay its budget (as set out in the preceding Standing
Order 20.13). The amendment to Standing Order 20.14 gives a 22
October deadline for the Finance Committee to report, and the
preceding Standing Order protects a minimum 3 week scrutiny period.
In practice the Commission may choose to lay its draft budget
earlier and the proposed Standing Order change means that, in that
case, rather than being required to report within 3 weeks of that
date, the Finance Committee would have more than 3 weeks for
scrutiny. The Assembly Commissioner with responsibility for budget
and governance supports this proposed change, which mirrors the
current procedures for the Wales Audit Office and Public Services
Ombudsman.
Annual
Budget Motions
27.It
is proposed to amend Standing Order 20.28, which sets out the
information to be provided in support of the Annual Budget Motion,
to add a new point (vi), requiring the publication of updates to
the information provided at draft budget stage (both outline and
detailed proposals) alongside the annual budget motion. The purpose
of this is to aid transparency in the scrutiny process for the
draft budget for the government. The level of updated information
to be provided
will be
as set out in the protocol agreed between the responsible committee
and the Welsh Government, in accordance with the proposed new
Standing Order 20.1A.
28.It
is also proposed to amend this Standing Order to clarify that the
references to ‘Treasury’ in the Standing Order relate
to the UK Treasury and not the Welsh Treasury.
Excess
Use of Resources
29.It
is proposed to make some changes to the existing Standing Orders
relating to excess use of resources. Separately to the Business
Committee’s consideration of changes to the
budget
process,
the Auditor General for Wales had raised with Welsh Government the
need to include an appropriate procedure within Standing Orders to
secure the necessary retrospective authorisation of any resource
limit breach within the Welsh block incurred either by a Local
Health Board or by the Welsh Government itself.
30.There
is provision in Standing Orders 20.38 – 20.41 for
retrospective authorisation of an excess use of resources through a
supplementary budget motion, but as currently worded the procedure
applies to the audited accounts of the Commission, the Wales Audit
Office and the Ombudsman. In any case of overspend by those bodies,
the Welsh Government may table a supplementary budget motion
in accordance
with
standing Orders 20.30 -20.37, but there is no explicit requirement
on the Welsh Government to do so in relation to its own excess use
of resources. The proposal is to correct this with the addition of
a new Standing Order 20.37A and consequential amendments to
Standing Orders 20.40 and 20.41 to include the new Standing Order
in the procedure. The procedure in
20.37A, for a Welsh Minister to table a supplementary budget motion
seeking retrospective authorisation, differs from that set out for
the Assembly Commission, Wales Audit Office and Ombudsman, whereby
those bodies submit a request to the Welsh Government to
table a supplementary budget motion. Consequential amendments to
Standing Orders 20.40 and 20.41 are also proposed to include
reference to the new Standing Order 20.37A.
Welsh
Rates of Income Tax (WRIT) – Welsh Rate
Resolutions
31.It
is proposed to introduce a new section into Standing Order 20,
before the Annual Budget Motion procedure, to allow for
Welsh rateresolutions.
The provisions for WRIT resolutions are detailed in GOWA as amended
by the Wales Act 2014, but as these are a new concept within the
Assembly’s Standing Orders, the proposed Standing
Orders 20.24A and 20.24B define and explain the requirements for a
Welsh rate resolution (a practice also adopted by the Scottish
Parliament).
32.The
proposed Standing Order 20.24C implements the requirements of
Section 116D(7) of the Act that only the First Minister or a Welsh
Minister may move a Welsh rate resolution. It also provides that
such motions are not amendable, thus protecting the
government’s sole right to propose financial measures, which
also applies to budget motions and financial resolutions for
Assembly Bills.
33.The
proposed new Standing Order 20.24D prevents a Welsh rate resolution
from being moved until after the Annual Budget Motion has been
tabled. This serves to protect the overall
integrityof the budget
scrutiny process, and ensures that Members vote on the Welsh rate
resolution with all the information on the Government’s final
budget to hand.
34.A
proposed new Standing Order 20.29A provides for thedependency
between a Welsh rate resolution and the agreement of the Annual
Budget Motion (ABM). By using ‘agreed’, rather than
‘tabled’ or ‘moved’ this Standing Order
would allow both a Welsh rate resolution and the ABM to be moved
and debated at the same meeting if the government so wished, except
that the ABM could not be voted on until the WRIT resolution had
been agreed.
Changes
to Standing Order 27 – Subordinate Legislation (Other than
Subordinate Legislation Subject to Special Assembly
Procedure)
35.Changes
to Standing Order 27 are proposed to provide for the approval of
statutory instruments relating to devolved taxes. Standing Order 27
provides for an affirmative resolution procedure for
subordinate
legislation. It is
proposed that this procedure is amended with the addition of
a new Standing Order 27.8A that will allow any
instrument or draft
instrument relating to devolved taxes to be considered by the
responsible committee under Standing Order 19 (currently the
Finance Committee), as well as the committee responsible for
functions under Standing Order 21 (currently the Constitutional and
Legislative Affairs Committee). This new Standing Order 27.8A means
that the Finance Committee can, but is not obliged to,
automatically consider any SI’s relating to devolved taxes,
but that it is still open to any other committee to also consider
the instrument, in accordance with the established process under
Standing Order 27.8. A consequential change is also proposed to
Standing Order 27.7 to refer to the role of the Finance Committee
for tax instruments.
36.As
there is no requirement on the responsible committee to consider
such SIs, officials for the responsible committee under SO27.8A
will share information with government officials at the earliest
opportunity about whether or not the committee will be considering
each item of subordinate legislation. In the same vein, government
officials will inform committee staff at the earliest opportunity
of when relevant SIs are likely to be laid.
Other
minor and consequential changes
37.It
is proposed to amend the sub-heading above Standing Order 20.2 and
the wording of Standing Order 20.20 in line with Section 4 of the
Wales Act 2014, to replace remaining references to ‘Welsh
Assembly Government’ with ‘Welsh
Government’.
38.Finally,
a correction to existing Standing Order 20.36(ii) is also proposed
– to replace the reference to ‘Finance Committee’
to ‘responsible committee’ in relation to the reporting
role for Supplementary Budget Motions.
Action
39.
The
Business Committee formally agreed the changes to Standing Orders
on 13 June 2017 and the Assembly is invited to approve
the
proposals at Annex B.
Annex
B
STANDING
ORDER 16 – Establishment and Remit of Committees
General
16.1
The Assembly must establish committees with power within their
remit to:
(i)
examine the expenditure, financing, administration and policy of
the government and associated public bodies;
(ii)
examine legislation;
(iii)
undertake other functions specified in Standing Orders;
and
(iv)
consider any matter affecting Wales.
16.2
The Business Committee must, as soon as possible after every
Assembly election, table a motion or motions in accordance with
Standing Order 16.1 proposing the titles and remits of
committees.
16.3
If it appears necessary to the Business Committee during the course
of an Assembly to alter the number, title or remit of one or more
committee (including by providing that any existing committee
should cease to exist), the Business Committee may table a motion
proposing that the alteration take place.
16.4
In tabling any motion under Standing Order 16.2 or 16.3, the
Business Committee must ensure that:
(i)
every area of responsibility of the government and associated
public bodies is subject to the scrutiny of a committee or
committees;
(ii)
all matters relating to the legislative competence of the Assembly
and functions of the Welsh Ministers and of the Counsel General are
subject to the scrutiny of a committee or committees;
and
(iii)
where reasonably practicable, there is broad balance between the
delivery of responsibilities specified in Standing Orders 16.1(i)
and 16.1(ii).
Other
Committees
16.5
The Assembly may establish any other committee on a motion tabled
by any Member. A motion to establish such a committee must propose
its title and remit.
Duration
of Committees
16.6
Subject to Standing Order 16.3, all committees established under
Standing Order 16 will exist for the duration of the Assembly
unless otherwise specified in the motion to establish the
committee.
STANDING
ORDER 19 - Finance
Committee
19.1
In proposing the remits of committees under Standing Order 16.2 or
16.3, the Business Committee must ensure that there is a committee
(referred to within Standing Order 19 as “the responsible
committee”) with responsibility for the functions specified
in Standing Order 19.
Functions
19.2
The responsible committee must consider and report on any report or
other document laid before the Assembly by Welsh Ministers or the
Commission containing proposals for financing, or the use of
resources.
19.3
The responsible committee may also consider and report on any other
matter relating to or affecting financing, or expenditure out of
the Welsh Consolidated Fund.
19.4
A reference to the use of resources is a reference to their
expenditure, consumption or reduction in value and includes
expenditure payable out of the Welsh Consolidated Fund and any
other expenditure met out of taxes, charges and other sources of
revenue.
19.5
A reference to ‘financing’ is a reference to sources of
funding including, but not limited to, revenues raised from taxes,
the Welsh Block grant and through the use of borrowing.
STANDING
ORDER 20 – Finance Procedures
General
20.1
References to “the responsible committee” within
Standing Order 20 means the committee with responsibility for the
functions specified in Standing Order 19.
20.1A
The responsible committee and the government must agree a protocol
on the administrative arrangements for the scrutiny of the annual
draft budget and other related budgetary matters.
Welsh
Government
20.2
In each
year, the Minister with responsibility for government business must
notify the Business Committee of the following:
(i)
the date
by which a Welsh Minister will lay the outline budget proposals for
the government, in accordance with Standing Order 20.7;
(ii)
the date
by which a Welsh Minister will lay the detailed budget proposals
for the government; and
(iii)
the date
by which a Welsh Minister will table the annual budget motion in
accordance with Standing Order 20.25, and taking account of
Standing Order 20.5.
20.3
The Minister must make the notification required under Standing
Order 20.2 at least two weeks before the summer recess in each
year.
20.4
Having been notified under Standing Order 20.2 and consulted the
responsible committee, the Business Committee must establish and
publish a timetable for the consideration of the budget, which must
include:
(i)
the
dates notified in accordance with Standing Order 20.2;
(ii)
the
deadline by which the responsible committee must report to the
Assembly on the outline budget proposals for the government;
and
(iii)
the
deadline
by which consideration of the detailed budget proposals by
committees must be completed.
20.5
In determining the deadlines under Standing Order 20.4 or
20.6;
(i)
the
responsible committee must normally be given at least eight weeks
to report on the outline budget proposals for the government, and
must always be given at least five weeks to report; and
(ii)
committees must be
given at least five weeks to consider the detailed budget proposals
for the government.
20.6
At the request of the Minister with responsibility for government
business, the Business Committee may make subsequent changes to the
timetable published under Standing Order 20.4, subject to Standing
Order 20.5. The Business Committee must publish the revised
timetable.
Draft
Budget Proposals
20.7
In accordance with Standing Order 20.2 (or Standing Order 20.6), a
Welsh Minister must lay before the Assembly outline budget
proposals setting out financing plans, and the amounts of resources
and cash which the government proposes to use for the following
financial year and provisional amounts for the subsequent two years
or for such other period as the Minister considers
appropriate.
20.7A
At the same time as a Welsh Minister lays before the Assembly
outline budget proposals under Standing Order 20.7 they must also
lay such accompanying information as is specified in the protocol
agreed under Standing Order 20.1A.
20.7B
In accordance with Standing Order 20.2 (or Standing Order 20.6), a
Welsh Minister must lay before the Assembly detailed budget
proposals, including the proposed budget allocations within each
Ministerial portfolio.
20.8
A Welsh Minister may make a statement in plenary on the draft
budget as soon as possible after the outline budget proposals are
laid in accordance with Standing Order 20.7.
20.9
No motion may be moved in plenary in respect of the draft budget
for the government until after both the following dates have
passed:
(i)
the
deadline by which the responsible committee is required to report
on the outline budget proposals under Standing Order 20.4(ii) (or
Standing Order 20.6); and
(ii)
the
deadline by which consideration of the detailed budget proposals by
other committees must be completed under Standing Order 20.4(iii)
(or Standing Order 20.6).
20.10
[Standing Order removed by resolution in Plenary on XX XXXX
XXXX]
20.11
The responsible committee’s report may recommend changes to
the amounts proposed in the outline budget proposals provided
that:
(i)
the net
effect of those changes would not increase or decrease the
aggregate amounts proposed in the outline budget proposals for the
government; or
(ii)
any
recommendation to increase the total spend proposed is accompanied
by a proposal for a commensurate increase in the level of
financing; or
(iii)
any
recommendation to decrease the level of financing should include
how the reduction is to be balanced by a reduction in the total
spending proposed.
20.12
In accordance with the timetable established and published by the
Business Committee under Standing Order 20.4 or Standing Order
20.6, the Assembly must consider a motion tabled by a Welsh
Minister that the Assembly takes note of the draft budget for the
government. Any amendment to such a motion may only be tabled
provided that:
(i)
the net
effect of any changes would not increase or decrease the aggregate
amounts of resources or cash proposed in the draft budget for the
government; or
(ii)
any
proposal to increase the total spend is accompanied by a proposal
for a commensurate increase in the level of financing;
or
(iii)
any
proposal to decrease the level of financing includes how the
reduction is to be balanced by a reduction in the total spending
proposed.
The
Commission
20.13
Not later than 1 October in each financial year, a member of the
Commission must lay before the Assembly a draft budget for the
Commission setting out the amounts of resources and cash which the
Commission proposes to use for the following financial year and
provisional amounts for the subsequent two years or for such other
period as the Commission has agreed with the Welsh
Ministers.
20.14
The responsible committee must consider and report to the Assembly
on the draft budget for the Commission by 22 October. The
responsible committee’s report may recommend variations in
the amounts proposed in the draft budget provided that the net
effect of those variations would not increase the aggregate amounts
of resources or cash proposed in the draft budget for the
Commission.
20.15
A member of the Commission must lay before the Assembly a budget
for the Commission. The budget may not be laid until after the
deadline by which the responsible committee is required to report
on the draft budget for the Commission.
20.16
A member of the Commission must table a motion that the budget laid
under Standing Order 20.15 be agreed and incorporated in the annual
budget motion under Standing Order 20.26(ii). No amendment to the
motion may be tabled and the motion must be debated within five
working days of it being tabled (not counting working days in a
non-sitting week).
20.17
If the final budget for the Commission is not agreed, then a member
of the Commission must lay before the Assembly a revised budget for
the Commission, together with a motion that it be agreed and
incorporated in the annual budget motion under Standing Order
20.26(ii). No amendment to the motion may be tabled and the motion
must be debated within five working days of it being tabled (not
counting working days in a non-sitting
week).
20.18
Further motions under Standing Order 20.17 may be tabled until such
time as agreement has been reached but no such motion may be
considered by the Assembly after 27 November.
20.19
If the budget for the Commission has not been agreed by 27
November, then the budget for the Commission to be incorporated in
the annual budget motion under Standing Order 20.26(ii) is to
comprise, for each service or purpose for which resources or cash
were authorised to be used by the Commission in the previous
financial year, 95% of the amount so authorised.
20.20
When a UK Government or Welsh Government Spending Review takes
place, a member of the Commission may, with the agreement of the
Business Committee, specify different dates from those within
Standing Order 20.13 by which he or she must lay the draft budget
for the Commission and, consequently, the date referred to in
Standing Order 20.18 and Standing Order 20.19. If the
Business Committee agrees, it must notify the Assembly by laying a
report.
Auditor
General and the Wales Audit Office
20.21
The Auditor General and the Wales Audit Office must jointly lay the
estimate of income and expenses required under Section 20 of the
Public Audit (Wales) Act 2013 before the Assembly as soon as
practicable but in any event no later than 1 November in each
financial year.
20.22
The responsible committee under Standing Order 18.10(i) must
consider and lay before the Assembly, no later than 22 November, a
report including the estimate, with any modifications which the
responsible committee, having consulted and taken into account any
representations made by the Auditor General and the Wales Audit
Office, considers appropriate.
Ombudsman
20.23
The Ombudsman must submit the estimate of income and expenses
required under paragraph 15 of Schedule 1 to the Public Services
Ombudsman (Wales) Act 2005 to the responsible committee as soon as
practicable but in any event no later than 1 November in each
financial year.
20.24
The responsible committee must consider and lay before the
Assembly, no later than 22 November, the estimate, with any
modifications which the Committee, having consulted and taken into
account any representations made by the Ombudsman, considers
appropriate.
Welsh
rate resolutions
20.24A
A Welsh rate resolution is a resolution of the Assembly under
section 116D of the Act.
20.24B
A Welsh rate resolution must
(i)
specify the tax year for which it applies;
(ii)
must be made before the start of that tax year; and
(iii)
must not
be made more than 12 months before the
start of that year.
20.24C
A motion for a Welsh rate resolution, or for the cancellation of
such a resolution, may only be moved by the First Minister or a
Welsh Minister. A Welsh rate resolution is not
amendable.
20.24D
A motion for a Welsh rate resolution may not be moved until after
the annual budget motion has been tabled in accordance with
Standing Order 20.25.
Annual
Budget Motions
20.25
An annual budget motion as required under section 125 of the Act
must be tabled by a Welsh Minister, in accordance with Standing
Order 20.2 (or Standing Order 20.6).
20.26
An annual budget motion must incorporate:
(i)
the final budget for the government;
(ii)
the final budget for the Commission as agreed by the Assembly under
Standing Order 20.16 or 20.17, or as determined under Standing
Order 20.19;
(iii)
the estimate for the Wales Audit Office, as laid before the
Assembly under Standing Order 20.22; and
(iv)
the estimate for the Ombudsman as laid before the Assembly under
Standing Order 20.24.
20.27
An annual budget motion may also incorporate any motion for a
resolution to be made for the relevant financial year under section
120(2)(a) of the Act.
20.28
The information produced in support of an annual budget motion must
include as a minimum:
(i)
the written statement required under section 125(3) of the
Act;
(ii)
the resources agreed by the UK Treasury for the Welsh block budget
for the financial year covered by the motion;
(iii)
a reconciliation between the resources allocated to the Welsh block
budget by the UK Treasury and the resources to be authorised for
use in the motion;
(iv)
a reconciliation between the estimated amounts to be paid into the
Welsh Consolidated Fund by the Secretary of State and the amounts
to be authorised for payment out of the Fund in the
motion;
(v)
a reconciliation between the resources to be authorised under
section 125(1)(a) and (b) of the Act and the amounts to be
authorised for payment out of the Welsh Consolidated Fund under
section 125(1)(c); and
(vi)
details of any revisions to the information provided in accordance
with Standing Orders 20.7 – 20.7B for the draft budget, as
specified in the protocol agreed under Standing Order
20.1A.
20.29
An annual budget motion may only be moved by a Welsh Minister. No
amendment to an annual budget motion may be tabled.
20.29A
No decision may be taken on an annual budget motion until the
Assembly has agreed the Welsh rate resolution for the financial
year covered by the motion.
Supplementary Budget
Motions
20.30
A Welsh Minister may table a supplementary budget motion under
section 126 at any time after the annual budget resolution has been
passed.
20.31
The information provided in support of a supplementary budget
motion must include any variations to that provided in accordance
with Standing Order 20.28.
20.32
If the supplementary budget motion proposes a variation to the
budget of the Commission, a member of the Commission must lay an
explanatory memorandum stating why it is required.
20.33
A supplementary budget motion tabled under Standing Order 20.30 may
not be moved until either:
(i)
the responsible committee has reported on the motion; or
(ii)
if the responsible committee has not reported on the motion, three
weeks have elapsed after it has been tabled.
20.34
The responsible committee’s report may recommend changes to
the amounts proposed in the supplementary budget motion provided
that the net effect of those variations would not increase or
decrease the aggregate amounts of resources or cash proposed in the
supplementary budget motion.
20.35
If the supplementary budget motion proposes a variation to the
budget for the Wales Audit Office:
(i)
the Auditor General and the Wales Audit Office must jointly provide
an explanatory memorandum to the responsible committee under
Standing Order 18.10(ii) stating why the variation to the
budget is required;
(ii)
the responsible committee under Standing Order 18.10(ii) may report
on the proposed variation within three weeks of the supplementary
budget motion being tabled. The report may propose any
modifications to the proposed variation which the responsible
committee under Standing Order 18.10(ii), having consulted and
taken into account any representations made by the Auditor General
and the Wales Audit Office, considers appropriate.
20.36
If the supplementary budget motion proposes a variation to the
budget for the Ombudsman:
(i)
the Ombudsman must provide an explanatory memorandum to the
responsible committee stating why the variation to the budget is
required;
(ii)
the responsible committee may lay before the Assembly a report on
the proposed variation within three weeks of the supplementary
budget motion being tabled. The report may propose any
modifications to the proposed variation which the responsible
committee, having consulted and taken into account any
representations made by the Ombudsman, considers
appropriate.
20.37
A supplementary budget motion may only be moved by a Welsh
Minister. No amendment may be tabled or moved except by a Welsh
Minister.
Excess
Use of Resources
20.37A
If the audited accounts of the Welsh Government for any financial
year record an excess of resources used to the amounts authorised
or deemed under the Act to be authorised by Assembly budget
resolutions, a Welsh Minister may table a supplementary budget
motion seeking retrospective authorisation for excesses recorded in
the Welsh Government’s audited accounts.
20.38
Standing Order 20.39 applies if the audited accounts of the
Commission, the Wales Audit Office or the Ombudsman for any
financial year record an excess of resources used to the amounts
authorised or deemed under the Act to be authorised by Assembly
budget resolutions.
20.39
A Welsh Minister must, if requested to do so by the Commission, the
Wales Audit Office or the Ombudsman, table a supplementary budget
motion seeking retrospective authorisation for excesses recorded in
that person’s audited accounts.
20.40
A supplementary budget motion tabled under Standing Orders 20.37A
or 20.39 may not be moved until either:
(i)
the Public Accounts Committee, or the responsible committee under
Standing Order 18.10(iv) if it relates to the Wales Audit Office,
has reported on the motion; or
(ii)
if the Public Accounts Committee, or the responsible committee
under Standing Order 18.10(iv) if it relates to the Wales Audit
Office, has not reported on the motion, 6 months have elapsed after
it has been tabled.
20.41
Standing Orders 20.30 to 20.36 do not apply to motions tabled under
Standing Orders 20.37A or 20.39.
STANDING
ORDER 27 – Subordinate Legislation (Other than Subordinate
Legislation Subject to Special Assembly Procedure)
Explanatory
Memoranda
27.1
Any statutory instrument or draft statutory instrument laid before
the Assembly must be accompanied by an Explanatory Memorandum,
which must include any Regulatory Impact Assessment prepared in
relation to the instrument.
Motion
for Annulment (Negative Resolution Procedure)
27.2
In the case of any statutory instrument which:
(i)
is subject to annulment in pursuance of a resolution of the
Assembly; or
(ii)
is laid in draft but cannot be made if the draft is
disapproved,
the
Assembly may, not later than 40 days after the instrument is laid,
resolve that the instrument be annulled or, as the case may be,
that the draft be disapproved.
27.3
Any Member may table a motion for resolution under Standing Order
27.2.
27.4
A motion for resolution under Standing Order 27.2 is not
amendable.
Motion
for Approval (Affirmative Resolution Procedure)
27.5
In the case of any statutory instrument or draft statutory
instrument laid before the Assembly which, unless the Assembly by
resolution approves it, cannot:
(i)
be made;
(ii)
come into force; or
(iii)
remain in force beyond the period specified in the enactment
conferring the power to make the instrument,
any member of the government may table a motion under Standing
Order 27.5 that the instrument or draft instrument be
approved.
27.6
A motion under Standing Order 27.5 is not
amendable.
27.7
No motion under Standing Order 27.5 may be considered in plenary
until either:
(i)
the committee responsible for the functions specified in Standing
Orders 21.2, 21.3 and 27.8A (where relevant) and any other
committee, which has given the notice mentioned in Standing Order
27.8, has reported on the instrument or draft; or
(ii)
20 days have elapsed since the instrument or draft instrument was
laid;
whichever is the
earlier.
27.7A
Where the enactment requiring the statutory instrument or draft
statutory instrument to be laid before the Assembly specifies
timings in relation to the Assembly’s consideration of the
statutory instrument or draft statutory instrument, Standing Order
27.7 does not apply.
27.8
If any committee, other than the committee responsible for the
functions specified in Standing Orders 21.2 and 21.3, intends to
report on an instrument or draft instrument to which Standing Order
27.5 applies, it must give notice to the government of its
intention to do so no later than seven days after the instrument or
draft has been laid.
27.8A
Any instrument or draft instrument relating to devolved taxes may
be considered by the responsible committee under Standing Order 19,
as well as the committee responsible for the functions specified in
Standing Orders 21.2 and 21.3. Standing Order 27.8 does not apply
to the responsible committee under Standing Order 19 in relation to
any such instrument or draft instrument.
27.9
If any committee considers any instrument or draft instrument to
which Standing Order 27.5 applies, the member of the government who
laid it (or another member of the government nominated by the First
Minister to have responsibility for it) may attend the committee
and participate in its proceedings relating to the instrument or
draft but may not vote.
No
Amendment of Instruments
27.10
A statutory instrument or draft statutory instrument, to which
Standing Orders 27.2 or 27.5 apply, cannot be amended.
Withdrawal
of Instruments
27.11
A statutory instrument or draft statutory instrument laid before
the Assembly may be withdrawn at any time by the member of the
government with responsibility for that instrument.
Calculation
of Days
27.12
In calculating for the purposes of Standing Order 27 any period of
days, no account is to be taken of any time during which the
Assembly is dissolved or is in recess for more than four
days.
Other
Motions in Respect of Instruments or Draft Instruments
27.13
Standing Orders 27.1 to 27.9 are without prejudice to the right of
any Member to table any other motion in respect of an instrument or
draft instrument.
Application
to Other Subordinate Legislation
27.14
Standing Orders 27.1 to 27.13 also apply with such modifications as
are necessary, to any other subordinate legislation (other than
that subject to Special Assembly Procedure under Standing Order 28)
in the form of a report, guidance, code of practice or other
document that is required by any enactment to be:
(i)
laid before the Assembly; and
(ii)
subject to any form of Assembly procedure having the same or
equivalent effect to those mentioned in Standing Orders 27.2 or
27.5.