Search Legislation

Government of Wales Act 2006

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes to legislation:

Government of Wales Act 2006, Cross Heading: Borrowing is up to date with all changes known to be in force on or before 08 February 2023. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

BorrowingU.K.

121Borrowing by Welsh MinistersU.K.

[F1(1)The Welsh Ministers may borrow from the Secretary of State—

(a)any amounts it appears to them are required by them for the purpose of meeting a temporary excess of sums paid out of the Welsh Consolidated Fund over sums paid into that Fund,

(b)any amounts it appears to them are required by them for the purpose of providing a working balance in the Welsh Consolidated Fund, and

(c)any amounts which in accordance with rules determined by the Treasury are required by the Welsh Ministers to meet current expenditure because of a shortfall in receipts from devolved taxes, or from income tax charged by virtue of a Welsh rate resolution, against forecast receipts.

(1A)The Welsh Ministers may, with the approval of the Treasury, borrow by way of loan [F2or by the issue of bonds (but not bonds transferable by delivery)] any amounts it appears to them are required by them for the purpose of meeting capital expenditure.

(1B)An amount is required for the purpose of meeting capital expenditure if the expenditure would be capital expenditure for the purposes of accounts under section 131.]

(2)Amounts borrowed under this section [F3from the Secretary of State] must be repaid to the Secretary of State at such times and by such methods, and interest on such sums must be paid to the Secretary of State at such rates and at such times, as the Treasury may from time to time determine.

(3)Sums required for the repayment of, or the payment of interest on, amounts borrowed under this section are to be charged on the Welsh Consolidated Fund.

[F4(4)The Secretary of State may by order made with the consent of the Treasury amend subsection (1A) so as to vary the means by which the Welsh Ministers may borrow money.

(5)No order is to be made under subsection (4) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.]

Textual Amendments

F1S. 121(1)-(1B) substituted for s. 121(1) (1.1.2017) by Wales Act 2014 (c. 29), ss. 20(3), 29(5)(a); S.I. 2016/1264, art. 2

F3Words in s. 121(2) inserted (1.1.2017) by Wales Act 2014 (c. 29), ss. 20(4), 29(5)(a); S.I. 2016/1264, art. 2

F4S. 121(4)(5) inserted (1.1.2017) by Wales Act 2014 (c. 29), ss. 20(5), 29(5)(a); S.I. 2016/1264, art. 2

122Lending by Secretary of StateU.K.

(1)The Treasury may issue to the Secretary of State out of the National Loans Fund such sums as the Secretary of State needs for making loans under section 121.

(2)The aggregate outstanding in respect of the principal of sums borrowed under [F5section 121(1)] must not exceed £500 million.

(3)The Secretary of State may by order made with the consent of the Treasury substitute for the amount for the time being specified in subsection (2) such F6... amount as is specified in the order.

[F7(3A)An amount substituted under subsection (3) may be more or less than the amount for which it is substituted but may not be less than £500 million.]

(4)No order is to be made under subsection (3) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

(5)Sums received by the Secretary of State under section 121(2) must be paid into the National Loans Fund.

Textual Amendments

F5Words in s. 122(2) substituted (1.1.2017) by Wales Act 2014 (c. 29), ss. 20(7), 29(5)(a); S.I. 2016/1264, art. 2

F6Word in s. 122(3) omitted (1.1.2017) by virtue of Wales Act 2014 (c. 29), ss. 20(8), 29(5)(a); S.I. 2016/1264, art. 2

F7S. 122(3A) inserted (1.1.2017) by Wales Act 2014 (c. 29), ss. 20(9), 29(5)(a); S.I. 2016/1264, art. 2

[F8122ALending for capital expenditureU.K.

(1)The aggregate at any time outstanding in respect of the principal of amounts borrowed under section 121(1A) shall not exceed [F9£1,000 million] .

(2)The Secretary of State may by order made with the consent of the Treasury substitute for the amount for the time being specified in subsection (1) such amount as may be specified in the order.

(3)An amount substituted under subsection (2) may be more or less than the amount for which it is substituted but may not be less than [F10£1,000 million] .

(4)No order is to be made under subsection (2) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

(5)A person lending money to a member of the Welsh Government—

(a)is not bound to enquire whether the member of the Welsh Government has power to borrow the money, and

(b)is not to be prejudiced by the absence of any such power.

(6)The Welsh Ministers may not mortgage or charge any of their property as security for money which they have borrowed under section 121(1A).

This is subject to section 121(3) (charging of sums on the Welsh Consolidated Fund).

(7)Security given in breach of subsection (6) is unenforceable.]

Textual Amendments

F9Words in s. 122A(1) substituted (31.3.2017) by Wales Act 2017 (c. 4), ss. 18, 71(2)(d) (with Sch. 7 paras. 1, 6)

F10Words in s. 122A(3) substituted (31.3.2017) by Wales Act 2017 (c. 4), ss. 18, 71(2)(d) (with Sch. 7 paras. 1, 6)

123Accounts relating to loansU.K.

(1)The Secretary of State must for each financial year prepare accounts in such form and manner as the Treasury may direct of—

(a)loans made by the Secretary of State under section 121 or treated as made by paragraph 11(6) of Schedule 3 or paragraph 44(6) of Schedule 11, and

(b)repayments and payments of interest made to the Secretary of State in respect of those loans.

(2)The Secretary of State must send accounts under subsection (1) relating to a financial year to the Comptroller and Auditor General no later than five months after the end of the financial year.

(3)The Comptroller and Auditor General must—

(a)examine, certify and report on accounts sent under subsection (2), and

(b)lay copies of the accounts, together with the report prepared under paragraph (a), before each House of Parliament.

Commencement Information

I1This provision in force immediately after "the 2007 election" by s. 161(1) (subject to s. 161(4)(5))

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources