| Previous Section | Index | Home Page |
Spring Supplementary Estimates (Government Actuary's Department)
The Financial Secretary to the Treasury (Mr. Stephen Timms): Subject to parliamentary approval of any necessary supplementary estimate, the Government Actuary's departmental expenditure limit will be increased by £130,000 from £1,309,000 to £1,439,000. Within the DEL change, the impact on resources and capital are as set out in the table:
| New DEL | ||||
|---|---|---|---|---|
| Change | Voted | Non-voted | Total | |
| Resource | 0 | 1,071 | - | 1,071 |
| Capital | 130 | 368 | 0 | 368 |
| Depreciation* | 0 | -416 | - | -416 |
| Total | 130 | 1,023 | 0 | 1,023 |
* 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 capital element of the DEL arises from the partial draw down of capital end-year flexibility (EYF) of £130,000. This is required to meet the costs arising from the replacement of pension's valuation software and the implementation of a document management system.
Spring Supplementary Estimates (HM Treasury)
The Paymaster General (Dawn Primarolo):
Subject to parliamentary approval of any necessary supplementary estimate, HM Treasury DEL will be increased by £6,383,000 from £251,764,000 to £258,147,000 and the
22 Feb 2005 : Column 9WS
administration costs limits will be increased by £7,883,000 from £152,509,000 to £160,392,000. Within the DEL change, the impact on resources and capital are as set out in the table:
* 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:
the Treasury's offices at 1 Horse Guards Road being held at a valuation based on commercial property market rents. There are indications of a fall in market rents in the Victoria/Whitehall area during 2004–05, which would give rise to an accounting charge. To cover the estimated charge, £9,000,000 will be drawn from a fund of End Year Flexibility (EYF) ring fenced for the purpose;
the Treasury's Spending Review 2002 settlement set in-year administration funding at a level lower than forecast spending, anticipating that the shortfall would be met from a draw down of EYF. The projected shortfall in 2004–05 is up to £3,000,000, which will be drawn from EYF accordingly;
the funding consequences of the transfer of tax policy functions from the Inland Revenue and HM Customs and Excise to the Treasury. These were partly dealt with in the Winter Supplementary Estimate, but a further £4,235,000 of funding in relation to the first part of 2004–05 remains to be transferred to the Treasury in order to properly account for the transfer, in accordance with the Resource Accounting Manual;
a transfer of £184,000 from HM Treasury to the Inland Revenue and HM Customs and Excise for the cost of capital on GOGGS East land following its transfer to said departments;
the completion of the refurbishment of 1 Parliament Street (the east end of the building formerly known as Government Offices Great George Street), this required the Treasury to transfer assets relating to 1 Parliament Street from its books to the books of the Inland Revenue and HM Customs and Excise. There is an accounting profit of £8,168,000 to the Treasury on the disposal;
an increase in the Office of Government Commerce' (OGC) appropriations in aid (A in A) of £725,000 and a matching £725,000 increase in expenditure for the engagement of consultants on behalf of other bodies;
22 Feb 2005 : Column 10WS
an increase in A in A programme of £300,000 and a matching £300,000 increase in spend for the Office of Paymaster General to bring the Estimate in line with forecasts;
an increase in A in A programme of £240,000 and a matching £240,000 increase in spend for Pool Re renegotiation costs;
a DEL neutral switch of £1,390,000 programme from non-voted to voted for Request for Resources 3 from the OGC's Efficiency Challenge Fund allocation; and
a decrease in A in A programme of £875,000 and a matching £875,000 decrease in spend due to the transfer of the Whitehall Systems 1 from OGC to OGCbuying.solutions.
The change in the capital element of the DEL arises from:
a partial draw down of capital eyf of £22,433,000 and the subsequent transfer of that funding to Inland Revenue and HM Customs and Excise for the transfer of the 1 Parliament Street assets referred to above. These changes net to zero;
a partial draw down of eyf of £1,500,000 by HM Treasury for the purchase of information systems software and hardware;
an increase in non-operating A in A of £11,550,000 and a loan of £8,550,000 both related to the transfer of the Whitehall Systems from OGC to OGCbuying.solutions.
1 The Whitehall Systems are backup heating and electricity power systems, previously operated and accounted for by OGC. Responsibility for them is being transferred to OGCbuying.solutions. OGC is surrendering its funding for cost of capital charges. OGCbuying.solutions is paying £11.55m for the assets, £3m in cash and £8.55m via a loan from OGC.
DEFENCE
Votes A 2005–06
The Secretary of State for Defence (Mr. Geoffrey Hoon): Ministry of Defence votes A 2005–06, will be laid before the House on 22 February as HC 291. This outlines the maximum numbers of personnel to be maintained for service in the armed forces for financial year 2005–06. Copies of these reports will be placed in the Libraries of both Houses.
Armed Forces Pay Review Body Report 2005
The Secretary of State for Defence (Mr. Geoffrey Hoon): The 2005 report of the Armed Forces' Pay Review Body has been published today. Copies of the report are available in the Vote Office and in the Library of the House. I wish to express my thanks to the chairman and members of the review body for their clear and wide-ranging report.
The AFPRB has recommended an increase in basic military salary of 3 per cent. for all other ranks and officers. The AFPRB has also recommended increases in the rates of specialist pay (eg flying pay, submarine pay, diving pay and hydrographic pay), and in accommodation charges. The AFPRB also recommended a 5 per cent. increase to rates of longer separated service allowance and longer service at sea bonus which are designed to compensate for separation.
The additional cost to the defence budget will be £216 million. This will be met within existing Departmental expenditure limits.
The AFPRB's recommendations are to be accepted in full, with implementation effective from 1 April 2005.
22 Feb 2005 : Column 11WS
ENVIRONMENT, FOOD AND RURAL AFFAIRS
Spring Supplementary Estimates
The Minister for Rural Affairs and Local Environmental Quality (Alun Michael): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Environment Food and Rural Affairs DEL will be increased by £103,689,000 from £3,178,447,000 to £3,282,136,000 and the administration costs limits will be increased by £38,101,000 from £357,572,000 to £395,673,000. Within the DEL change, the impact on resources and capital are as set out in the table:
| New DEL | ||||
|---|---|---|---|---|
| Change | Voted | Non-voted | Total | |
| Resource | 80,531 | 2,467,116 | 682,540 | 3,149,656 |
| Capital | 23,158 | 227,350 | 103,980 | 331,330 |
| Depreciation* | 0 | -101,733 | -97,117 | -198,850 |
| Total | 103,689 | 2,592,733 | 689,403 | 3,282,136 |
* 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 (i) take up of end-year flexibility of £42,464,000 programme resources and £37,902,000 administration resource; (ii) take up of £384,000 administration resources from the Cabinet Office for Parliamentary Counsel costs; (iii) take up of £28,000 of programme resources from Department for Transport to fund coastal protection measures; (iv) take up of £524,000 of programme resources from Department for Trade and Industry for the Red Meat Industry Forum; (v) transfer of £500,000 of programme resources to the Department for International Development to fund projects in eastern Europe, Caucasus and central Asia; (vi) transfer of £42,000 to Department for Trade and Industry to fund the Sustainable Development round table; (vii) transfer of £105,000 of programme resources to the Department for Trade and Industry for the Farm Business Advice service; (xiii) transfer of £44,000 of programme resources to the Office of the Deputy Prime Minister for the Infrastructure Investment programme; (ix) transfer of £80,000 of administration resources to the Foreign and Commonwealth Office for contributions related to the United Nations Convention on the Law of the Sea (UNCLOS).
An additional £60,000 transfer from Office of the Deputy Prime Minister will be taken up in the 2005–06 Winter Supplementary.
The change in the capital element of the DEL arises from: (i) take up of end-year flexibility of £23,158,000 capital.
The increases are offsetting inter-departmental transfers and take-up of end-year flexibility, and will not therefore add to the planned total of public expenditure.
| Next Section | Index | Home Page |