Government of Wales Act 2006

121 Borrowing by Welsh Ministers U.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 [F2 or 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 [F3 from 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

F1 S. 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

F2 Words in s. 121(1A) inserted (1.12.2018) by The Government of Wales Act 2006 (Variation of Borrowing Power) Order 2018 (S.I. 2018/1266), arts. 1, 2

F3 Words 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

F4 S. 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