The Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2026
This Statutory Instrument, made by the Secretary of State for Transport with Treasury approval under the Merchant Shipping Act 1995, increases the maximum aggregate amount General Lighthouse Authorities can borrow from £133 million to £166 million, effective from 12:01 a.m. on 31st March 2026, and extends this provision across England, Wales, Scotland, and Northern Ireland.
Arguments For
Ensuring General Lighthouse Authorities have sufficient financial headroom to maintain and upgrade essential navigational aids and maritime safety infrastructure, as required by statute.
Reflecting the current operational costs and necessary capital expenditure for maintaining UK waters, which may have outpaced the previous £133 million limit established in late 2024.
Authorizing increased borrowing capacity through a statutory mechanism approved by both the Treasury and the House of Commons, ensuring democratic oversight of public financial frameworks.
Arguments Against
Potential for increased public sector debt or reliance on future revenue streams to service the additional borrowing, depending on the funding structure of the General Lighthouse Authorities.
Concerns regarding the frequency of these increases (e.g., the previous increase was in late 2024), suggesting that the initial statutory limit (£100 million) or subsequent increases may not be adequately projected for long-term needs.
The lack of a detailed impact assessment suggests limited scrutiny of potential economic consequences, though the instrument itself claims no significant impact on private or voluntary sectors.
STATUTORY INSTRUMENTS
2026 No. 258
MERCHANT SHIPPING
The Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2026
This identifies the document as an official piece of UK secondary legislation, specifically a Statutory Instrument, numbered 2026 No. 258, which pertains to the regulation of Merchant Shipping.
Made
11th March 2026
Coming into force - - 12th March 2026
The Order was formally approved on March 11, 2026, and it legally took effect the following day, March 12, 2026.
The Secretary of State makes this Order in exercise of the powers conferred by section 216(2) of the Merchant Shipping Act 1995 ('the Act')( 1 ), and with the approval of the Treasury.
The Secretary of State for Transport is enacting this Order using the specific authority granted under Section 216(2) of the Merchant Shipping Act 1995, and this action required formal agreement from His Majesty's Treasury.
In accordance with section 216(3) of the Act, a draft of this Order has been laid before and approved by a resolution of the House of Commons.
Before becoming law, a preliminary version of the Order was presented to the House of Commons, where it received formal approval through a vote or resolution, satisfying a procedural requirement of the 1995 Act.
Citation, commencement and extent
- This Order-
- (a) may be cited as the Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2026;
- (b) comes into force on the day after the day on which it is made; and
- (c) extends to England and Wales, Scotland and Northern Ireland.
This section formally names the legislation, confirms it comes into effect the day after it is made (March 12, 2026), and specifies that its legal scope covers England, Wales, Scotland, and Northern Ireland.
Increase of borrowing limit
- The limit specified in section 216(1) of the Merchant Shipping Act 1995 is increased with effect from 12:01 a.m. on 31st March 2026 to £166 million.
This is the core directive, immediately raising the borrowing ceiling for General Lighthouse Authorities, as defined in the 1995 Act, to one hundred and sixty-six million pounds starting shortly before midnight on March 31, 2026.
Signed by authority of the Secretary of State for Transport
11th March 2026
Simon Lightwood Parliamentary Under Secretary of State Department for Transport
This confirms the document was officially signed on March 11, 2026, by Simon Lightwood, acting on behalf of the Secretary of State for Transport.
| Status: This is the original version (as it was originally made). This item of legislation is currently only available in its original format. |
This note indicates that the version presented is the definitive text as it was initially enacted, with no subsequent amendments yet incorporated.
We approve the making of this Order
10th March 2026
Christian Wakeford Gen Kitchen Two of the Lords Commissioners of His Majesty's Treasury
This section confirms the required approval was given by two Lords Commissioners of His Majesty's Treasury on March 10, 2026, before the Order was formally made.
EXPLANATORY NOTE
(This note is not part of the Order)
Under section 215 of the Merchant Shipping Act 1995 ('the 1995 Act'), general lighthouse authorities may borrow money for certain purposes and subject to obtaining the necessary consents. Under section 216(1) of the 1995 Act, the aggregate amount that may be outstanding in respect of the principal of any sums borrowed is limited to £100 million. This limit was increased to £133 million on the 31st December 2024 by the Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2024 (S.I. 2024/1274).
This Order increases that limit by a further £33 million, i.e. to £166 million, with effect from 31st March 2026, in accordance with section 216(2) of the 1995 Act.
No impact assessment has been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.
An Explanatory Memorandum and a de minimis assessment have been prepared and are published alongside the instrument on www.legislation.gov.uk.
This note, which is not legally part of the Order, explains that General Lighthouse Authorities can borrow money under the 1995 Act, but the total outstanding principal was initially capped at £100 million.
This cap was previously raised to £133 million in December 2024.
The current Order adds another £33 million to that total, setting the new limit at £166 million from March 31, 2026.
The government determined that a full impact assessment was unnecessary as the effect on the private, voluntary, or public sectors is expected to be non-significant.
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