delete The Pension Protection Fund (Limit on Borrowing) Order 2005
Sets a statutory borrowing limit of £25 million for the Pension Protection Fund (PPF) under section 115(3) of the Pensions Act 2004. The PPF is a government-backed fund that provides compensation to members of defined benefit pension schemes when employers become insolvent.
This limit is an arbitrary cap that constrains the PPF's financial management without clear justification. The PPF is a leviathan that distorts pension markets by effectively guaranteeing employer pension promises, encouraging underfunding. While the PPF itself represents state overreach into private pension provision, removing this specific borrowing limit would allow the PPF greater operational flexibility to manage its affairs without taxpayer-backed constraints. The £25 million figure appears to have been plucked from thin air with no economic analysis, and limits the PPF's ability to borrow strategically for cash flow management. A private entity would not operate under such an arbitrary statutory ceiling.