Parliamentary.ai

Overview

This bill temporarily increases the maximum amount of money held in the UK's Contingencies Fund, a reserve fund used to cover unexpected government spending needs. This increase is designed to provide the government with greater financial flexibility to deal with unforeseen circumstances.

Description

The Contingencies Fund Act 1974 currently limits the Fund's capital to 2% of the previous year's authorized government spending. This bill amends the 1974 Act, temporarily raising this limit to 50% until April 1st, 2021. This change allows the government to draw significantly more money from the Fund to address urgent and unexpected financial demands.

Key Changes

• Increases the Contingencies Fund's capital limit from 2% to 50% of the previous year's authorized supply expenditure.
• This increase is temporary, lasting until April 1, 2021.

Government Spending

The bill itself does not directly increase government spending. Instead, it increases the amount of readily available funds the government can access without parliamentary approval in case of emergency or unforeseen circumstances. The actual increase in government spending will depend on how much is drawn from the fund.

Groups Affected

The bill primarily affects the UK government, providing it with greater financial flexibility during a period of potential instability. Indirectly, the general public could be affected depending on how the increased funds are utilized to address various unforeseen circumstances or emergencies. Parliamentary oversight of government spending is also impacted, as larger sums can be spent before needing parliamentary approval.