Finance Act 2003

Other financial matters

210Payments for service of national debt

(1)Section 15 of the National Loans Act 1968 (c. 13) (payments for service of national debt) is amended as follows.

(2)In subsection (1) (payments to be made out of Consolidated Fund into National Loans Fund), for “charges on the National Loans Fund for the service of national debt over” substitute “payments out of the National Loans Fund—

(a)which represent interest on liabilities of the National Loans Fund, or

(b)which, in the opinion of the Treasury, ought to be treated in the same way as payments which represent such interest,

over”.

(3)Omit subsection (3) (which defines “charges on the National Loans Fund for the service of national debt”).

(4)In paragraph 13 of Schedule 5A to that Act (Debt Management Account: payments to be made out of National Loans Fund into Debt Management Account), omit sub-paragraph (2) (payments to be treated as charges on the National Loans Fund for the service of national debt).

211Definition of liabilities and assets of National Loans Fund

In section 19(4) of the National Loans Act 1968 (c. 13) (which defines as the liabilities of the National Loans Fund the nominal amount of the debt outstanding to it and as its assets its balance and loans etc outstanding to it), for the words from “of the National Loans Fund” onwards substitute “and assets of the National Loans Fund shall be as determined by the Treasury.”.

212Accounts of Consolidated Fund and National Loans Fund

(1)Section 21 of the National Loans Act 1968 (accounts of Consolidated Fund and National Loans Fund) is amended as follows.

(2)In subsection (1) (annual accounts of payments in and out), for the words from “in such form” onwards substitute “an account relating to the Consolidated Fund, and an account relating to the National Loans Fund, in such form and containing such information as the Treasury consider appropriate.”.

(3)Omit subsection (3) (statements of additional information regarding transactions, assets and liabilities of Consolidated Fund and National Loans Fund).

(4)Subsection (2) has effect for the financial year ending with 31st March 2004 and subsequent financial years.

(5)Subsection (3) has effect for such financial year as the Treasury may by order made by statutory instrument appoint and subsequent financial years.

213Debt Management Account: abolition of borrowing cap

In Schedule 5A to the National Loans Act 1968 (Debt Management Account), omit paragraph 8 (borrowings otherwise than from National Loans Fund not to exceed total standing to credit of that Account in that Fund and at Bank of England).

214Payments in error from or to National Loans Fund

In paragraph 11 of Schedule 5A to the National Loans Act 1968 (c. 13) (payments between National Loans Fund and Debt Management Account in respect of difference between assets and liabilities of that Account), insert at the end—

“(4)If any amount paid under sub-paragraph (1A) or (3) above should not have been paid, the Treasury may repay the whole or any part of it.”.