Overview

This bill temporarily increases the maximum amount of money held in the UK's Contingencies Fund, a reserve fund used for unexpected government spending needs. This increase is intended to provide greater financial flexibility to address 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 to temporarily raise this limit to 50%.

Key Changes:

• The bill modifies Section 1(1) of the Contingencies Fund Act 1974.
• It replaces the 2% limit with a temporary 50% limit.
• This 50% limit is in effect until 1 April 2021.

The increased limit allows for faster responses to unexpected events requiring immediate government funding before Parliament can approve additional spending.

Government Spending

The bill itself doesn't directly increase government spending. Instead, it increases the readily available reserve for unforeseen events. It potentially avoids the need for emergency parliamentary approval for spending in urgent situations, therefore, potentially speeding up the delivery of crucial funds. No specific figures for potential expenditure are included in the bill.

Groups Affected

This bill could indirectly affect numerous groups depending on the nature of the unforeseen events for which the increased fund is used. Examples include those affected by natural disasters (requiring emergency relief), sudden public health crises (needing urgent medical response funding), or other unpredictable national emergencies. The positive effect on these groups would be the speedier provision of essential support.

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