Wednesday 13 February 2019
Business, Energy and Industrial Strategy
Competition and Markets Authority: Contingencies Fund Advance
The Competition and Markets Authority (CMA) has sought a repayable cash advance from the Contingencies Fund of £17,049,000 to ensure the CMA’s relocation to new offices remains on schedule.
The CMA will only receive its voted funding for this project at the supplementary estimate, and consequently may only draw the related cash from the Consolidated Fund after the Supply and Appropriation Act has received Royal Assent in March 2019. This requirement has arisen because the 2018-19 expenditure for the construction works at the CMA’s new offices is predominantly falling in the last quarter of this financial year.
The cash advance will ensure the project stays on track and on budget and ensure that the CMA also meets its operational needs.
Parliamentary approval for additional resources of £2,793,000 and capital of £14,256,000 will be sought in a supplementary estimate for the CMA. Pending that approval, urgent expenditure estimated at £17,049,000 will be met by repayable cash advances from the Contingencies Fund.
Reinsurance (Acts of Terrorism) Act 1993
In a written statement on 22 March 2018 [HCWS579], I informed Parliament that the Government intended to amend the Reinsurance (Acts of Terrorism) Act 1993 to enable the Government’s agreement with Pool Re, the terrorism reinsurer, to be expanded to include business interruption losses that are not contingent on damage to commercial property. This was achieved with Royal Assent of the Counter-Terrorism and Border Security Act on 12 February 2019. This demonstrates the Government’s commitment to ensuring that businesses can continue to secure insurance against the financial costs of terror attacks, and that Pool Re can maintain its position as an example world-leading partnership between Government and the insurance sector.