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CABINET OFFICE

Departmental Expenditure Limit

The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander): Subject to Parliamentary approval of any necessary supplementary estimate, the Cabinet Office DEL will be increased by £11,446,000 from £299,843,000 to £311,289,000 and the gross administration costs limits will be increased by £10,243,000 from £213,490,000 to £223,733,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

£000

		New DEL
	Change	Voted	Non-voted	Total
Resource	11,133	276,115	0	276,115
Capital	313	85,328	0	85,328
	Depreciation* 0		-50,154	0	-50,154
Total	11,446	311,289	0	311,289

* Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the resource element of the DEL arises from additions from the DEL reserve of £8,600,000 to support core departmental activities, additions of £2,206,000 from the Policy Innovation Fund for the newly formed shareholder executive and net transfers from other government departments of £327,000.

The change in the capital element of the DEL arises from additions of £23,000 from the Policy Innovation Fund for the newly formed Shareholder Executive and net transfers from other departments of £290,000.

HEALTH

Disabled People (Annual Report)

The Parliamentary Under-Secretary of State for Health (Dr. Stephen Ladyman): The annual report for 2002 is being published today and copies have been placed in the Library. The report covers research and development work carried out by or on behalf of any Government Department in relation to equipment that might increase the range of activities and independence or well being of disabled people.

The current report places such research in the context of national service frameworks and the Valuing People White Paper, and outlines the role of assistive technology

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in making independent living easier for older people and people with disabilities. The report describes the wide range of Government funded projects supporting the development, introduction and evaluation of assistive technology.

Departmental Expenditure Limit

The Secretary of State for Health (Dr. John Reid): Subject to Parliamentary approval of the necessary Supplementary Estimate the Department of Health and the Food Standards Agency Departmental Expenditure Limits (DELs) will be decreased by

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£287,548,000 from £66,009,788,000 to £65,722,240,000 and the Administration Cost Limits (ACL) decreased by £10,377,000 from £349,302,000 to £338,925,000.

The Department of Health DEL will be decreased by £304,400,000 from £65,887,613,000 to £65,583,213,000 and the ACL will reduced by £15,229,000 from £312,677,000 to £297,448,000. The Food Standards Agency DEL is increased by £16,852,000 from £122,175,000 to £139,027,000 and the ACL will increase by £4,852,000 from £36,625,000 to £41,477,000. The impact on resource and capital are set out in the following table.

£ million

		New DEL
	Change	Voted	Non-voted	Total
	Department of Health
Resource DEL	39,817	63,070.172	-141.395	62,928.777
Capital DEL	-344.217	1,214.994	1,439.442	2,654.436
Total Department of Health DEL	-304.400	64,285.166	1,298.047	65,583.213
Depreciation*	-1.752	-352.648	-44.369	-397.017
Total Department of Health	-306.152	63,932.518	1,253.678	65,186.196
Food Standards Agency
Resources	16,840	136.368	0	136.368
Capital	0.012	2.659	0	2.659
Total Food Standards Agency DEL	16.852	139.027	0	139.027
Depreciation*	0	-2.004	0	-2.004
Total Food Standards Agency	16.852	137.023	0	137.023

* Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the resource element of the departmental expenditure limit for the Department of Health arises from: take up of End Year Flexibility (EYF) £349.632 million as set out in table 6 of the public expenditure 2002–03 provisional outturn white paper Cm 5884 published in July 2003; a transfer from the capital DEL £318 million; additions from the invest to save budget £0.803 million; net transfers from the Home Office of £7.369 million for drug treatment and care and match funded social care projects, offset by contributions to the Home Office invest to save substance misuse project; to the Scottish Executive £-2.565 million (£0.067 million administration cost limit) for out of area treatments, offset by a contribution for the high security infectious diseases unit and national screening committee costs; transfer to the Department for Education and Skills £-637.965 million (£-4.976 million administration cost limit) mainly for the machinery of Government change for child care policy; a transfer to Department of Trade and Industry £-0.056 for a contribution to review body costs; a transfer from Office of the Deputy Prime Minister £0.154 million (£0.162 million administration cost limit) mainly for local government public service agreements; a transfer from Office for National Statistics £0.059 million (administration cost limit) for a neighbourhood survey and a transfer from Department for Work and Pensions £4.386 million for a contribution the residential allowance grant.

The change in the capital element of the Department Expenditure Limit for the Department of Health arises from: a transfer to the resource DEL £-318 million; additions from the invest to save budget £0.191 million; a transfer to the Department for Education and Skills £-25.575 million for the machinery of government change for child care policy; a transfer to Cabinet Office £-0.750 million for development of a website and a transfer to Home Office £-0.083 million for a contribution to the invest to save budget.

The changes to the Food Standards Agency resource element of the Departmental Expenditure Limit arise from: a claim for end year flexibility of £16,840,000 (£13,872,000 programme and £1,468,000 administration costs) to fund existing 2003–04 pressures; to incorporate a transfer of £1,500,000 from the Department for Environment, Food and Rural Affairs (Defra) to cover the cost of additional illegal import enforcement and inspection work; to correctly record the split of FSA income between programme and administration income; and to transfer £3,419,000 from the FSA to the Meat Hygiene Service, an executive agency of the FSA.

The Department of Health's administration cost limit has reduced by £-15.229 million from £312.677 million to £297.448 million as detailed above and by a transfer of £-10.541 million to programme costs. The Food Standards Agency (FSA) administration cost limit has increased by £4.852 million from £36.625 million to £41.477 million as a result of incorporating administration cost EYF and correctly classifying FSA income.

TRANSPORT

Departmental Expenditure Limit

The Secretary of State for Transport (Mr. Alistair Darling): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Transport departmental expenditure limit (DEL)

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for 2003–04 will be increased by £299,876,000 from £10,342,932,000 to £10,642,808,000 and the administration costs limits will be increased by £22,838,000 from £356,423,000 to £379,261,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

(£000)

		New DEL
	Change	Voted	Non-voted	Total
Resource	312,102	4,580,715	3,073,981	7,654,696
Capital	-12,226	1,816,823	1,469,442	3,286,265
	Depreciation*-		-298,153	-	-298,153
Total	299,876	6,112,985	4,529,823	10,642,808

* Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the voted resource element of the DEL arises from:

(i) take up of £182,000,000 reserve claim for London Underground to reflect the carry over of unspent grant from 2002–03, arising from delays in completing the London Underground Public Private Partnership;

(ii) take up of £79,691,000 end year flexibility, comprising:

(a) £18,603,000 for expenditure by the Highways Agency consisting of £14,803,000 programme and £3,800,000 administration costs;


(b) £8,400,000 for expenditure by London Underground on Canary Wharf agreement, contributions to Wembley Park and outstanding Jubilee Line contractors costs partly met by the take up of the reserve claim and internal savings;


(c) £5,317,000 for expenditure on water freight grants;


(d) £4,585,000 for expenditure by the Vehicle and Operator Services Agency;


(e) £4,359,000 for expenditure on railways, including consultancy expenditure and, in particular, financial advice on Network Rail securitisation and cross channel railways issues;


(f) £4,467,000 for expenditure by the Maritime and Coastguard Agency consisting of £3,500,000 programme and £967,000 administration costs;


(g) £3,381,000 for expenditure resulting from the extension of the Air Transport White Paper timetable following judicial review that Gatwick options should be considered as part of the South East airport consultation;


(h) £1,137,000 for expenditure for the Cycling Fund project;


(i) £129,000 for recruitment and retention and other front line costs in the Marine Accident Investigation Branch;


(j) £4,476,000 for Transport Security costs;


(k) £500,000 for increased staff and building rental costs for the Rail Accident Investigation Branch;


(l) £17,599,000 (administration costs) for expenditure by the Driver and Vehicle Licensing Agency consisting of £11,570,000 for the Motor Vehicle Registration Implementation Board and £6,029,000 for Electronic Service Delivery to provide on-line services to customers;


(m) £6,738,000 (administration costs) for expenditure by the Department for Transport; and

(iii) a net transfer of £5,089,000 to other government departments, comprising:

(a) £100,000 from the Foreign and Commonwealth Office for costs associated with the setting-up of a Register of Shipping for certain Caribbean Overseas Territories;

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(b) £32,000 from the Department for Trade and Industry for the enforcement of working time directives;


(c) £94,000 (administration costs) from the Office for National Statistics for Neighbourhood Renewal Unit statistics;


(d) £75,000 (administration costs) from the Office of the Deputy Prime Minister for local Government Public Service Agreement costs;


(e) £75,000 (administration costs) from the Office of the Deputy Prime Minister for Honours Secretariat and Equality and Diversity Unit costs;


(f) £700,000 to the Office of the Deputy Prime Minister for the new Horizons programme;


(g) £1,210,000 (administration costs) to the Office of the Deputy Prime Minister for Government Offices;


(h) £155,000 (administration costs) to the Office of the Deputy Prime Minister for London Transport agenda;


(i) £1,400,000 to the Office of the Deputy Prime Minister as part of the pan-government Ordnance survey agreement; and


(j) £2,000,000 (administration costs) to the Department for Works and Pensions to assist the Health and Safety Executive to implement the recommendations of the Cullen Inquiry.

(iv) a transfer of £13,699,000 from the voted capital element of the DEL for the Driving Standards and Vehicle and Operator Services Agencies Electronic Service Delivery project.

(v) an increase in receipts of £23,025,000 comprising;

(a) £2,283,000, reclassification of interest payments from Consolidated Funds Extra Receipts to Appropriations-in-Aid;


(b) £7,142,000 Rail track Administrators fees receipt; and


(c) £13,600,000 transfer from the Scottish Executive to reflect a reduction in ScotRail access charges and ScotRail performance penalty payments.

(vi) a transfer from non-voted resource provision of £610,000 for shipping services.

Within the non-voted resource element of the DEL, there has been a net increase of £50,616,000 comprising:

(i) a take up of £44,168,000, non voted end year flexibility for the Strategic Rail Authority;

(ii) £7,142,000 use of Rail track receipts transferred from voted resource provision to offset expenditure by the Strategic Rail Authority;

(iii) £4,000 to the Office of the Deputy Prime Minister from the Strategic Rail Authority as part of the pan-government Ordnance Survey agreement;

(iv) £610,000 of Consolidated Fund Extra Receipts transferred to resource voted provision;

(v) £80,000 of receipts from ports in respect of land sales; and

(vi) £13,600,000 use of Scottish Executive voted transfer by the Strategic Rail Authority.

As a result of the above changes to the resource element of the DEL, and technical reclassification of £3,145,000 from administration to programme expenditure, there has been a net increase of £22,838,000 in the gross administration costs limit, from £356,423,000 to £379,261,000.

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The decrease of £25,717,000 in the voted capital element of the DEL arises from:

(i) a transfer of £13,699,000 to the resource element of the DEL for the Driving Standards and Vehicle and Operator Services Agencies ESD project;


(ii) a transfer of £11,500,000 to non voted capital provision; and


(iii) an increase in receipts of £518,000 as a result of capital repayments following the Vehicle and Operator Services Agency's deemed loan.

The net increase of £13,491,000 in the non-voted capital element of the DEL arises from:

(i) a transfer of £11,500,000 from voted programmes comprising:

(a) £11,000,000 for de-trunking credit approvals;


(b) and £500,000 for the Strategic Rail Authority; and

(ii) a technical reclassification of £1,991,000 interest payments from Consolidated Fund Extra Receipts to Appropriation in Aid, the effect of which will be to increase capital DEL and reduce resource DEL.

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