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Communities and Local Government

Departmental Expenditure Limit 2006-07: Department for Communities and Local Government

The Secretary of State for Communities and Local Government (Ruth Kelly): Subject to parliamentary approval of any necessary supplementary estimate, the Department for Communities and Local Government's departmental expenditure limits for 2006-07 will change as follows:

the Department for Communities and Local Government's main programmes DEL will be increased by £43,389,000 from £9,418,142,000 to £9,461,531,000 and the administration budget will also be increased by £5,852,000 from £318,647,000 to £324,499,000. The new administration budget takes account of the re-classification of £2,625,000 for the Residential Property Tribunal Service from administration to programme expenditure. Within the DEL change, the impact on resources and capital are as set out in the following table:

£ thousand
New DEL
ChangeVotedNon-VotedTotal

Resource

18,702

3,544,675

120,922

3,665,597

of which:

Administration budget

5,552

324,499

324,499

Near-cash in RDEL

10,225

3,451,057

156,990

3,608,047

Capital

24,687

2,208,019

3,587,915

5,795,934

Depreciation(1)

-834

-38,011

2,004

-36,007

Total

42,555

5,714,683

3,710,841

9,425,524

(1) 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.

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

(2) The Department for Communities and Local Government (Local Government) DEL will be increased by £27,588,000 from £22,803,676,000 to £22,831,264,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

£ thousand
New DEL
ChangeVotedNon-VotedTotal

Resource

27,588

22,459,802

106,077

22,565,879

of which:

Administration budget

Near-cash in RDEL

27,555

22,459,802

105,561

22,565,363

Capital

0

259,885

5,500

265,385

Depreciation(1)

-516

-516

Total

27,588

22,719,687

111,061

22,830,748

(1) 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 £27,500,000 for special grant paid in support of the local authority private finance initiative programme.

(ii) a transfer of £88,000 to Request for Resources (RfR 2) Local Government Research from Housing, Supply and Demand Section (RfRl).

(iii) an increase in receipts of £80,000 with a corresponding increase in DEL cover for capacity building.

(i) take up of end year flexibility of £13,500.000 comprising :

Programme Expenditure

£2,000,000 for Procurement Efficiency in Social Housing;

Administration costs

(b) £11,500,000 for administration costs comprising £5,000,000 (non cash) to cover transfers to Government Offices and £6,500,000 from Other Current to cover the costs of voluntary early staff exits.

(ii) a transfer of £88,000 from Request for Resources (RfR 1) Research to Local Government Research (RfR2).

(iii) Draw down of £813,000 from the Treasury's Invest to Save Budget comprising £108,000 for the First Step Trust and £705.000 for the Transitional Spaces projects.

(iv) A net transfer of £4,477,000 from other Government Departments, comprising:

From Other Government Departments

Programme Expenditure

£1,000,000 from the Department for Constitutional Affairs for the start up costs of the Commission for Equality and Human Rights.

Administration Costs (Government Offices)

(b) £1,800,000 from the Department for Transport towards the costs of voluntary staff exits;


20 Feb 2007 : Column 16WS

(c) £764,000 from the Cabinet Office for the Community Cohesion programme;

(d) £1,013,000 from the Department for Trade and Industry for additional UK Trade and Investment funding.

To Other Government Departments

Administration Costs (Central Department)

(e) £100,000 to the Deputy Prime Minister's Office for the costs of shared services.

(v) an increase in receipts of £22,952,000 offsetting increases in provision of £1,711,000 for Firelink recharging Scotland (£1,144,000) and Wales (£565,000) for the costs of the Firelink project; £2,000 for Control Rooms; £583,000 for Central Administration for work provided to Other Government Departments; £178,000 for Other Current for expenditure incurred on secondees; £2,564,000 for Mapping and Data Services; £17,477,000 for Government Offices comprising £15,819,000 from the Home Office for various programmes; £1,653,000 for work provided to Other Government Departments and £5,000 to offset against non pay expenditure; and £439,000 for the Independent Housing Ombudsman Limited.

a net transfer of £29,296,000 from non voted to voted provision comprising:

From voted to non-voted provision

(a) £9,867,000 from Firelink to the Departmental Unallocated provision comprising of £4,817,000 non cash and £5,050,000 near cash;

(b) £125,000 from the Landlord Licensing and Safety Rating programme to the LEASE programme;

(c) £500,000 from the Regional Housing Board Advice to the Housing Corporation;

(d) £200,000 from the Housing Market Renewal Fund to the Housing Corporation;

(e) £150,000 within Thames Gateway from direct funding to Thurrock Urban Development Corporation (UDC);

To voted from non- voted provision

(f) £39,488,000 non cash from English Partnerships comprising £339,000 to the Coalfields Enterprise Fund; £150,000 to the Planning Inspectorate; £1,224,000 to E-Planning and £37,775,000 to the European Regional Development Fund;

(g) £650,000 to the European Regional Development Fund from Thames Gateway South East of England Development Agency (£500,000) and Thurrock UDC (£150,000).

(vii) As a result of the changes to Request for Resources 1, The Department for Communities and Local Government's administration provision will be increased by £12,352,000 from £325,454,000 to £337,806,000. The new provision takes account of the re-classification of £2,625,000 for the Residential Property Tribunal Service from administration to programme expenditure.

The change in the capital element of the DEL arises from:

a take up of EYF of £41,886,000 comprising of:

Programme Expenditure

(a) £34,000,000 for Large Scale Voluntary Transfers;


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(b) £286,000 from the Invest to Save Budget for the Private Housing Renewal project;

(c) £7,600,000 for English Partnerships.

(ix) Draw down of £5,000 from the Treasury's Invest to Save Budget for the Transitional Spaces project

a net transfer of £17,204,000 to other Government Departments comprising of

From Other Government Departments

Administration Costs

(a) £45,000 from the Department for Transport for the Information Technology Services Outsourcing Project (ITSOP).

To Other Government Departments

Programme Expenditure

(b) £12,249,000 from the Departmental Unallocated Provision to the Department for Culture Media and Sport in respect of the Department's contribution towards the Olympics preparation infrastructure costs.

(c) £5,000,000 for the Combined Universities of Cornwall from the Development of English Regions programme.

(xi) an increase in receipts of £5,366,000 offsetting increases in provision of £3,750,000 for residual Single Regeneration Budget for claw back on behalf of Greenwich Industrial Estate and £1,616,000 for Government Offices from the Highways Agency.

Within the capital element of the DEL there is a net transfer of £26,061,000 from non voted to voted provision comprising ;

From voted to non voted provision

(a) £19,400,000 to English Partnerships comprising £5,000,000 from Procurement Efficiency in Social Housing; £13,500,000 from the Housing Market Renewal Fund and £900,000 from the Home Buying and Selling programme;

(b) £890,000 from Firelink to the Departmental Unallocated Provision;

(c) £1,199,000 from Thames Gateway direct funding to English Partnerships (£1,074,000) and Thurrock UDC (£125,000);

(d) £200,000 from Thames Gateway direct funding to East of England Development Agency.

To voted from non voted provision

(e) £45,000,000 to Capital Pooled Receipts from the Departmental Unallocated Provision;

(f) £2,500,000 within Other Growth Areas from the Urban Regeneration Agencies to direct funding;

(g) £250,000 within Thames Gateway from Thurrock UDC to direct funding.

(iv) a net transfer of £404,000 from voted to non voted provision comprising £104,000 from Capacity Building to the Standards Board and £300,000 from Bellwin to the Valuation Tribunal Service.

(v) The change in the capital element of the DEL arises from a transfer of £3,000,000 to voted Local Government on Line from the non voted Communication programme.

(vi) an increase in receipt of £1,250,000 with a corresponding increase in DEL cover for Local Government on Line.


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