Announces that DfT are seeking an advance from the Contingencies Fund to meet an urgent cash requirement.
I hereby give notice of the Department for Transports’ intention to seek an advance from the Contingencies Fund. The department requires an advance to meet an urgent cash requirement pending parliamentary approval of the ‘Main estimate 2014 to 2015’.
It was announced on 23 April 2014 that Network Rail borrowing directly from government rather than issuing debt in its own name would provide better value for money for the taxpayer. The Department for Transport has included in total £6,500,000,000 in the ‘Main estimate 2014 to 2015’ for this change in borrowing arrangements - this amount includes £550,000,000 which will be taken as a Contingency Fund advance.
Parliamentary approval for capital of £550,000,000 for this new expenditure will be sought in the ‘Main estimate 2014 to 2015’ for the Department for Transport. Pending that approval, urgent expenditure estimated at £550,000,000 will be met by repayable cash advances from the Contingencies Fund.
The advance will be repaid immediately following Royal Assent of the Supply and Appropriation Bill in July.