Contingencies Fund Act 2020
The Contingencies Fund Act 2020 was created to increase the maximum capital of the United Kingdom's contingency fund from 2%, as set out in Section 1 of the Contingencies Fund Act 1974, to 50%. It was introduced by Chancellor of the Exchequer Rishi Sunak in response to the COVID-19 pandemic.
| Act of Parliament | |
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| Long title | An Act to make provision increasing the maximum capital of the Contingencies Fund for a temporary period. |
|---|---|
| Introduced by | Rishi Sunak, Chancellor of the Exchequer (Commons) Earl of Courtown, Captain of the Yeomen of the Guard (Lords) |
| Dates | |
| Royal assent | 25 March 2020 |
| Other legislation | |
| Amends | Contingencies Fund Act 1974 |
| Relates to | Miscellaneous Financial Provisions Act 1946 Coronavirus Act 2020 |
Status: Current legislation | |
| Text of statute as originally enacted | |
Background
The Contingencies Fund was established in 1862 by HM Treasury. It originally consisted of a fixed amount of capital which was increased over time and by 1945 had reached £1.5 million. Before this legislation, the Contingencies Fund Act 1974 required that the permanent capital of the fund not exceed 2% of the authorised supply expenditure of the previous financial year. The fund provides cash loans to government departments.[1]
Due to the COVID-19 outbreak, this legislation raises the limit to 50%.
Provisions
Section 1
Increases the limit from 2% to 50%, automatically expiring on 1 April 2021.