Section 78

The Bank of England may not exercise the power to make a mandatory reduction instrument or a stabilisation power in respect of a bank without the Treasury's consent if the exercise would be likely to have implications for public funds. In subsection (1)— “public funds” means the Consolidated Fund and any other account or source of money which cannot be drawn or spent other than by, or with the authority of, the Treasury, and action has implications for public funds if it would or might involve or lead to a need for the application of public funds. The Treasury may by order specify considerations which are to be, or not to be, taken into account in determining whether action has implications for public funds for the purpose of subsection (1). If the Treasury refuse consent under subsection (1), the Bank of England must consider other exercises of the power to make a mandatory reduction instrument or the stabilisation powers with a view to— pursuing the special resolution objectives, and avoiding the objections on which the Treasury's refusal was based. The Treasury may by notice to the Bank of England disapply subsection (4) in respect of a bank; and a notice may be revoked by further notice. An order under subsection (3)— shall be made by statutory instrument, and shall be subject to annulment in pursuance of a resolution of the House of Commons.

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Source: legislation.gov.uk · retrieved 2026-09-04