The Government of Wales Act 2006 (Increase of Capital Borrowing Limits) Order 2026
Raised the Welsh Government's capital borrowing limit from £1,000 million to £1,100 million.
This Order increases the maximum amount of money the Welsh Ministers can borrow to fund capital expenditure.
It amends section 122A(1) of the Government of Wales Act 2006, raising the aggregate borrowing limit from £1,000 million to £1,100 million.
The Order applies to the Welsh Government and comes into force on 16 July 2026, extending to the whole of the United Kingdom to ensure the statutory change is recognized across all legal jurisdictions.
Arguments For
The order increases the statutory ceiling on borrowing to fund capital expenditure, such as infrastructure projects, as provided for under section 122A of the Government of Wales Act 2006.
The legislation is made by the Secretary of State with the consent of the Treasury, following approval by the House of Commons, fulfilling the procedural requirements for adjusting devolved financial powers.
The explanatory note states that no significant impact on the voluntary, private, or public sectors is foreseen from this specific adjustment to the borrowing cap.
Arguments Against
Critics of expanded devolved borrowing may argue that increasing debt limits for devolved administrations could impact the UK's overall fiscal position or sovereign debt management.
Legal or economic observers might question whether a £100 million increase is sufficient to meet the Welsh Government's stated infrastructure or investment requirements.
Some parties may raise concerns regarding the cost of servicing additional debt and the long-term impact on the Welsh budget if borrowing powers are utilized to the new maximum limit.
- -(1) This Order may be cited as the Government of Wales Act 2006 (Increase of Capital Borrowing Limits) Order 2026.
- (2) It comes into force on the day after the day on which it is made.
- (3) It extends to England and Wales, Scotland and Northern Ireland.
This section establishes the official name and operational timeline of the Order.
It specifies that the provisions take legal effect on 16 July 2026.
The section also confirms that the geographic reach of the legislation covers all four nations of the United Kingdom.
- In section 122A(1) of the Government of Wales Act 2006 (lending for capital expenditure), for '£1,000 million' substitute '£1,100 million'.
This section carries out the primary legal change by modifying the text of the Government of Wales Act 2006.
It substitutes the previous capital expenditure borrowing cap of £1,000 million with a new higher limit of £1,100 million.
This change governs the total outstanding amount that Welsh Ministers are permitted to borrow for long-term investments like buildings or roads.
Related
The Air Navigation (Restriction of Flying) (Pantside, Wales) (Emergency) Regulations 2026
Established an immediate emergency restricted airspace for unmanned aircraft over Pantside, Wales.
Read MoreThe Air Navigation (Restriction of Flying) (Stourbridge, West Midlands) (Emergency) Regulations 2026
Prohibited unauthorized flight below 1,500 feet in a specific area of Stourbridge due to an emergency.
Read MoreThe Air Navigation (Restriction of Flying) (Buckfastleigh, Devon) Regulations 2026
Established a temporary restricted airspace for unmanned aircraft in Buckfastleigh, Devon, on 12 August 2026 for public safety purposes.
Read MoreThe Greater Cambridge Development Corporation (Establishment) Order 2026
Established the Greater Cambridge Development Corporation and designated its operational urban development area effective 23 July 2026.
Read More