§ Mr. Deakinsasked the Chancellor of the Exchequer if he will define the respective roles of the Reserve and the Contingencies Funds.
§ Mr. Peter ReesThe reserve is that part of the public expenditure planning total which, at the start of the year, is not allocated to expenditure programmes. It is intended to cover any unforeseen changes in individual programmes, including any estimating changes in demand-led and other programmes as well as policy changes and any new initiatives which arise during the course of the year. This treatment reflects the Government's intention to treat the planning total as a control total.
The Contingencies Fund was established by Parliament to provide repayable advances to meet payments for urgent services in anticipation of parliamentary provision for those services becoming available, and to provide funds required temporarily by any Government Department for necessary working balances, or to meet other temporary cash deficiencies. All advances have to be repaid through votes or receipts and no payment may remain as a final charge to the fund.