Finance Act 2008

157 Government borrowing: alternative finance arrangements U.K.

(1) The Treasury may by regulations make provision for raising money through alternative finance arrangements.

(2) Regulations under subsection (1) must specify the purpose or purposes for which money may be raised through each kind of alternative finance arrangements that, under regulations under subsection (1), is available for raising money.

(3) The Treasury may not raise money through a particular kind of alternative finance arrangements unless, in the Treasury's opinion, raising the money would be in accordance with the provision made under subsection (2) in relation to that kind of arrangements.

(4) Regulations under subsection (2) may, in particular, specify a purpose or purposes for which money may be raised under the National Loans Act 1968 (c. 13).

(5) Money to be raised under regulations made under this section—

(a) may be raised either within or outside the United Kingdom, and

(b) may be raised either in sterling or in any other currency or medium of exchange, whether national or international.

(6) Subsection (5) is subject to provision made in or under the regulations.

(7) Schedule 46 contains further provision about regulations under this section.

(8) In this section and Schedule 46 “alternative finance arrangements” means arrangements which in the Treasury's opinion—

(a) equate in substance to a loan, deposit or other transaction of a kind that generally involves the payment of interest (including the issuance of government securities), but

(b) achieve a similar effect to such a transaction without including provision for the payment of interest.