Explanatory Memorandum from the Department
of the Environment, Transport and the Regions (EST 98A)
PART II—COMMENTARY ON THE SUPPLY ESTIMATES
CLASS VI, VOTE 3: ENVIRONMENTAL
PROTECTION AND
WATER, ENGLAND
More details can be found in the Annual Report
1998: chapter 10 and Tables A3, A9, A11, A14, A15, B24 and B25.
| Vote total
|
|
| £000 |
|
| Final net provision 1996-97 | 355,260
|
| Provision sought 1998-99 | 335,513
|
| Change | -19,747 |
| Change (Per cent) | -6 Per cent
|
| |
| Final net provision 1997-98 | 355,187
|
| Provision sought 1998-99 | 335,513
|
| Change | -19,674 |
| Change (Per cent) | -6 Per cent
|
|
The Vote comprise nine Sections, and 30 separate programmes,
most of which are in the field of environmental protection, although
there are some miscellaneous programmes (pneumoconiosis and planning
redevelopment grant). The programmes provide support in a number
of different ways, but primarily through grant regimes, grant
in aid to bodies and contractual arrangements. Seventy-five per
cent of the provision is directed throughout four programmes:
grant in aid to the Environment Agency; support to low income
households for energy efficiency measures through the Home Energy
Efficiency Scheme; grant in aid to the British Waterways Board;
and environmental protection research and monitoring.
There are no new programmes on the Vote. Certain functions
have been transferred to the Environment Agency from elsewhere;
the outturn figures for past years have been adjusted in the estimates
to take account of these.
The reduction in overall provision is due primarily to: provision
for the Environment Agency being reduced as extra grant in aid
towards the cost of its setting up in 1996-97 and 1997-98 is no
longer required (section C); provision for the Energy Saving Trust
also being higher in its initial first full year of support by
the Department (1996-97) than in 1997-98 and 1998-99 (section
A); and a large one off commutation payment being made in 1997-98
for planning redevelopment (Section I).
Individual Sections where the level of provision has changed
significantly are:
| Section C—Environment Agency
|
|
| £000 |
|
| Final net provision 1996-97 | 112,980
|
| Provision sought 1998-99 | 100,912
|
| Change | -12,068 |
| Change (Per cent) | -11 Per cent
|
| |
| Final net provision 1997-98 | 1113,646
|
| Provision sought 1998-99 | 100,912
|
| Change | -12,734 |
| Change (Per cent) | -11 Per cent
|
|
1 There are differences between the figures in the Annual Report 1998 and Estimates figures given for 1997-98. The figure in the Annual Report (Figure 10a) for the Environment Agency shows actual expenditure and provision, including virements, with notional adjustments reflecting transfers of responsibilities shown on a separate line; the Main Estimates show actual published provision, excluding virements, and include these notional adjustments.
|
| |
Annual Report 1998—Chapter 10, paragraphs 10.54-10.57;
Figures 10a, 10h-10l
The reduction in the baseline for Environment Agency arises
mainly because the extra grant in aid towards the cost of its
setting up in 1996-97 and 1997-98 is no longer required, resulting
in a net reduction of £12 million after taking account of
additional provision for new duties. In terms of its overall income,
the reduction in grant in aid to the Agency reflects a smaller
proportionate reduction than the above percentages because grant
in aid funds less than a fifth of the Agency's overall expenditure.
| Section D—Pneumoconiosis compensation, etc
|
|
| £000 |
|
| Final net provision 1996-97 | 5,845
|
| Provision sought 1998-99 | 6,889
|
| Change | +1,044 |
| Change (Per cent) | +18 Per cent
|
| |
| Final net provision 1997-98 | 6,107
|
| Provision sought 1998-99 | 6,889
|
| Change | +782 |
| Change (Per cent) | +13 Per cent
|
|
Annual Report 1998—Chapter 10, paragraph 10.36; figure
10d
This programme comprises compensation payments to sufferers,
and dependants of sufferers, of pneumoconiosis and other dust
related diseases. The scheme is demand led and the number of claims,
and hence levels of expenditure, are expected to continue to rise
into the first decade of the next century.
Annual Report 1998—Chapter 10, paragraphs 10.47-10.50
and 10.53; figure 10g
This Section comprises payments under three separate grant
regimes for water supply and sewerage and for the security of
water installations. Grants payable under two of the grant regimes
under this Section are demand led and payments have generally
been declining in recent years. Reduced provision reflects this
trend.
| Section G—Miscellaneous grants
|
|
| £000 |
|
| Final net provision 1996-97 | 4,581
|
| Provision sought 1998-99 | 362
|
| Change | -4,219 |
| Change (Per cent) | -92 Per cent
|
| |
| Final net provision 1997-98 | 446
|
| Provision sought 1998-99 | 362
|
| Change | -84 |
| Change (Per cent) | -19 Per cent
|
|
Annual Report 1998—Chapter 10, paragraph 10.53; figure
10g
Payments under this Section currently consist of further
water and sewerage grant expenditure, in this case to local authorities.
In previous years, provision covered clean air grant (which ceased
in March 1996) and air quality grant (one off grant largely payable
in 1996-97). The reduction in provision is a result of declining
expenditure under the demand led water grant scheme, and the ending
of clean air grant, following the UK's achievement of the targets
set by the European Union. Air quality grant supported pilot studies
which took place during 1996-97 following new legislation; support
to local authorities is now provided through air quality Supplementary
Credit Approvals, funded through provision on the DETR/OES non-voted
cash limit.
| Section 1—Planning redevelopment
|
|
| £000 |
|
| Final net provision 1996-97 | 3,150
|
| Provision sought 1998—99 | 1,276
|
| Change | -1,874 |
| Change (Per cent) | -59 Per cent
|
| |
| Final net provision 1997-98 | 11,347
|
| Provision sought 1998-99 | 1,276
|
| Change | -10,071 |
| Change (Per cent) | -89 Per cent
|
|
Annual Report 1998-Chapter 10; figure 10a
This Section provides for payments of grant to local authorities
for approved schemes of planning redevelopment. No new approvals
have been made and the number of remaining active schemes has
been declining as schemes are commuted or declared in credit.
Provision, excluding commutations, has been declining for many
years, but one-off commutations, particularly the large ones,
have distorted the figures by requiring provision to be increased
in the years in which they took place. The largest remaining claim,
covering schemes in Birmingham, was commuted during 1997-98 and
caused a particularly large increase for that year only. At the
beginning of 1998-99 there were only a few schemes remaining and
this has since been reduced to one.
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