Overview

This bill amends the Commonwealth Development Corporation Act 1999, increasing the maximum amount of government financial assistance that can be provided to the Commonwealth Development Corporation (CDC). The increase significantly raises the cap on government support for CDC's development projects in Commonwealth countries.

Description

The bill primarily alters section 15 of the 1999 Act. Specifically, it increases the limit on government financial assistance to the CDC from £1.5 billion to £6 billion. Furthermore, it grants the Secretary of State the power to raise this limit even further, up to £12 billion, through regulations approved by the House of Commons. These regulations would be subject to parliamentary scrutiny before implementation. The bill also includes standard clauses regarding the short title, extent (applying to the whole UK), and commencement (upon passage).

Government Spending

The bill potentially increases the maximum amount of government financial assistance available to the CDC from £1,500 million to £12,000 million. The actual increase in government spending will depend on the level of assistance requested by the CDC and approved by the Secretary of State.

Groups Affected

• Commonwealth Development Corporation (CDC): The CDC will directly benefit, potentially receiving significantly more government funding for its development projects.
• Commonwealth Countries: These countries could see increased investment in development projects funded by the CDC, leading to potential economic growth and improvements in infrastructure and other areas.
• UK Taxpayers: Ultimately, taxpayers will bear the cost of increased government funding, though the extent depends on the actual spending.
• Parliament: Parliament retains oversight through the requirement for approval of any increase beyond £6 billion.

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