Overview

This bill temporarily raises the maximum amount of money held in the UK's Contingencies Fund, a reserve used for unexpected government spending needs. The increase is intended to provide greater financial flexibility for a limited time.

Description

The Contingencies Fund (No.2) Bill amends the Contingencies Fund Act 1974. Specifically, it temporarily increases the Fund's capital limit from 2% to 12% of the authorized supply expenditure for the financial year ending March 31, 2021. This change will only be in effect between March 31, 2021, and April 1, 2022.

The bill's key provision is the temporary alteration to the percentage limit. This adjustment is designed to allow for a significantly larger amount of money to be available for unforeseen government expenses during a specified period.

Government Spending

The bill itself does not directly increase government spending. Instead, it increases the upper limit on the amount of money that can be held in the Contingencies Fund, allowing for greater flexibility in managing potential unforeseen expenses up to 12% of the authorised supply expenditure for the year ending 31 March 2021, rather than the usual 2%. No specific figures for the increased amount are provided in the bill itself. This depends on the total authorized supply expenditure for that financial year.

Groups Affected

The primary group affected is the UK government, which gains increased financial flexibility to respond to unexpected events requiring government funding within the specified time frame. The general public indirectly benefits through the potential for swifter responses to crises or unforeseen circumstances.

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