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In a parliamentary democracy 'confidence and supply' are required for a government to hold power. A 'confidence and supply agreement' is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation (supply) votes.

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Confidence

Supply

Confidence

Main articles: Motion of Confidence, Motion of no confidence

In most democracies, members of a parliament can propose a Motion of Confidence or Motion of No Confidence in the government or executive. The results of such motions show how much support the government currently has in parliament. Should a motion of confidence fail, or a motion of no confidence pass, the government will usually either resign and allow other politicians to form a new government, or call an election.

Supply

Main articles: Appropriation bill, Loss of Supply

Most democracies require an Appropriation bill or something similar to be passed by parliament in order for a government to receive money to enact its policies. If an appropriation bill fails, the government loses control of the money supply, and is therefore virtually powerless. In effect, the failure of a supply bill has the same effect as the failure of a confidence motion. In early modern England, the withholding of funds was one of parliament's few ways of controlling the monarch.