Overview

This bill grants the British Library Board the power to borrow money. Currently, this power is prohibited, and this legislation removes that restriction, enabling the Library to secure funding for its operations and projects.

Description

The British Library Act 1972 currently prevents the British Library Board from borrowing money. This bill amends the 1972 Act by removing the clause that prohibits borrowing. Specifically, it removes the phrase “; but the Board shall not have power to borrow money” from paragraph 11(1) of the Schedule to the 1972 Act. This single amendment grants the Board the ability to take out loans for future projects and operations.

The bill applies to England, Wales, Scotland, and Northern Ireland and comes into force two months after it is passed. The bill's short title will be the British Library Board (Power to Borrow) Act 2020.

Government Spending

This bill does not directly allocate any government funds. Instead, it enables the British Library Board to borrow money independently, potentially reducing reliance on direct government funding for future projects and operational expenses. The exact financial impact will depend on the extent of future borrowing by the British Library Board.

Groups Affected

• The British Library Board: Will gain the ability to borrow money, providing greater financial flexibility for operations and projects.
• Taxpayers: Potentially impacted indirectly if the Library borrows significant sums, leading to interest payments which might influence future government budgetary decisions.
• Lenders: Banks and other financial institutions who could become potential sources of funds for the British Library.
• Library Users: Could indirectly benefit if the added borrowing allows for improved services or facilities.

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