Member

The other reason for resisting the amendment is the principle of hypothecation. Views on hypothecation vary. We can all see the neatness and symmetry inherent in hypothecated funding. It is an attractive idea on paper and my noble friend Lord Young gave some examples but, with very narrow exceptions, we have found by experience that this is not the best way for the public finances to operate. In general, the Treasury needs flexibility and Ministers need to feel that they can take decisions about how to manage their departmental budgets.