The Contingencies Fund was established in 1862 by HM Treasury,[2] and allows governmental departments to access cash advances when money for urgent matters is likely to achieve parliamentary approval, but is needed quickly.[3] Usually, the Contingencies Fund Act 1974 requires that the permanent capital of the fund not exceed 2% of the authorised supply expenditure of the previous financial year.[4]
The bill was introduced in the Commons for its first reading on 9 March 2021. It had its second and third readings on 11 March, and was passed to the Lords for its first reading the same day. The bill passed all its remaining readings on 12 March and was given royal assent on 15 March.[7]
Provisions
The act's sole provision was a temporary increase to the contingency fund limit set out in the Contingencies Fund Act 1974 from 2% to 12% (increasing the fund from £17.5 billion to £105 billion).[6] The increase automatically expires on 1 April 2022.[8]
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