Contingencies Fund (No. 2) Bill — Clause 1 — Temporary Increase in Capital Limit of Contingencies Fund — Reports — 11 Mar 2021 at 13:30

The majority of MPs voted against regular reports on spending from the Contingencies Fund.

MPs were considering the Contingencies Fund (No. 2) Bill^[1][2]

The motion rejected by a majority of MPs in this vote was:

• That new clause 1 be read a Second time.

New Clause 1 was titled: Contingencies Fund: reporting in financial year 2021-22 and began:

• “(1) The Treasury must lay before the House of Commons within 15 days of the end of each calendar month in the financial year 2021-22 a report which includes a complete list of each advance from the Contingencies Fund, in each of the following categories—
• (a) during the Vote on Account period, to meet urgent cash requirements (other than supporting a new service) in excess of the net cash requirement granted in the Vote on Account;
• (b) to meet the cash requirement supporting an urgent service which Parliament has already approved through specific enabling legislation but for which existing provision is not available;
• (c) to meet the cash requirement supporting a new service which is urgent and cannot await Parliamentary approval of both the specific enabling legislation and the necessary Estimate;
• (d) to meet a further urgent cash requirement for existing services when provision for the total net cash requirement on the Estimate is exhausted; and
• (e) in the case of an Estimate where expenditure is largely financed from income, advances made in anticipation of the receipt of cash associated with such income.
• ...

The rejected new clause was accompanied by the following explanatory statement from its proposer:

• This new clause is intended to enhance accountability to Parliament for as long as the increased flexibility of the Contingencies Fund is in place, and in particular to provide an additional check on the regularity and propriety of any procurement decisions which lead to advances being required from the Contingencies Fund.

The Contingencies Fund Act 2020 had already increased the Contingencies Fund from 2% of Central Government departmental budgets to 50% until the end of 2020-21. The Contingencies Fund (No. 2) Bill provided for a Contingencies Fund of 12% for 2021-22.

The explanatory notes to the Bill^[2] explain the increases in the Contingencies fund were linked to the response to the covid-19 pandemic however this purpose was not set out in the Bill and the funding was not restricted for a particular purpose.

• [1] Parliament's webpage on the Contingencies Fund (No. 2) Bill, Parliament.uk
• [2] Explanatory notes to the Contingencies Fund (No. 2) Bill, Parliament.uk]

Debate in Parliament |