Supplementary memorandum from the Department
for Transport (DAR 01C)
PROVISION SOUGHT IN SPRING SUPPLEMENTARY
ESTIMATE 2007-08
Changes to key Estimate and Budget control totals
are as follows:
| £'000 | Winter Supplementary
Estimate
| Change sought | Spring Supplementary
Estimate
|
| Net Resource Requirement | 14,618,790
| 2,059,473 | 16,678,263 |
| Voted net capital provision | 1,122,668
| 10,070 | 1,132,738 |
| Net cash requirement | 11,815,150
| 1,859,129 | 13,674.279 |
| Resource DEL Budget | 6,925,477
| -28,577 | 6,896,900 |
| Of which: | |
| |
| Administration Budget | 289,384
| 5,142 | 294,526
|
| Near cash in RDEL | 6,428,831
| 141,423 | 6,570,254
|
| Capital DEL Budget | 6,543,378
| 641,395 | 7,184,773 |
| | |
|
The following table relates Estimate figures to Budget figures
The Departmental Expenditure Limit is not identical to the
Estimate. This is principally because:
(a) some expenditure within Departmental Expenditure Limits
is non-Voted while some Voted expenditure is outside Departmental
Expenditure Limits; and
(b) the Departmental Expenditure Limit includes expenditure
by Non Departmental Public Bodies (NDPBs) and public corporations,
and supported capital expenditure (revenue) (SCER formerly credit
approvals) to local authorities, which are not included in the
Estimate. The Estimate records expenditure by the Department and
Executive Agencies only, which includes grant in aid to Non Departmental
Public Bodies and grants to public corporations.
| '000s | Supply Estimates
| | | |
| | DEL Budget |
| |
| Net Resources Requirement
| | | | Capital (1)
| Estimate-related | Non-Voted
|
| | |
| | | Resources
| Capital (1) | Resources
| Capital (1) |
| DEL | AME |
Outside DEL | DEL | Outside DEL
| | | |
|
| Central Govt's own expenditure | 6,532,812
| 3,696,674 | | 1,138,538
| | 3,354,849 | 4,316,501
| | -7 |
| Grants to Local Authorities | 4,138,116
| | 1,858,000 |
| | 2,981,133 | 1,156,983
| | 454,000 |
| NDPBs/Public Corporations (2) |
| | 451,858 |
| -5,000 (5) | |
| 462,516 | 402,498 |
| European Regional Development Fund (3) |
| | |
| | 2,732 | 7,169
| | |
| Trans-European Networks payments (4) | 3
| | | |
| | 20,500 | |
|
| EC receipts (ERDF & TENS) |
| | | |
| -2,732 | -27,666 |
| |
| Supported Capital Expenditure (Rev) |
| | | |
| | | | 856,457
|
| Departmental Unallocated Provision |
| | | |
| | | 108,741
| |
| CFERs | | |
| | |
| | -10,339 | -1,662
|
| Totals | 10,670,931 | 3,696,674
| 2,309,858 | 1,138,538 | -5,000
| 6,335,982 | 5,473,487 | 560,918
| 1,711,286 |
NOTES
(1) Capital grants score as resource in the Estimate but capital in the Budget.
(2) Grant in aid to NDPBs scores in the Estimate, outside DEL; Expenditure by NDPBs scores in the Budget, within DEL.
(3) ERDF expenditure on transport projects scores in DfT's budget but in DCLG's Estimate (with associated receipts).
(4) TENS receipts are netted off TENS expenditure in the Estimate.
(5) £5 million non-operating appropriations in aid associated with the British Transport Police Authority.
| | | |
| | | |
| |
SUMMARY OF
CHANGES SOUGHT
IN THE
ESTIMATE
The Spring Supplementary Estimate requests additional net
resource provision of £2,059.473 million. The main issues
that arise, and the sections affected, are:
— Drawdown of near cash End Year Flexibility
(EYF) for Crossrail (Section L) and Central Administration (Section
X).
— Drawdown of capital End Year Flexibility
(EYF) for grants to the Greater London Authority in respect of
costs relating to Metronet in the light of its move into administration
(new section AJ).
— Near cash transfer to the Scottish Executive
for the Rail Environmental Benefit Procurement Scheme (Section
N).
— Reclassification of the Highways Agency's
impairments from the Departmental Expenditure Limit (non cash
DEL) to Annually Managed Expenditure (AME) (Sections E and AG).
— Creation of new non budget provision for
capital grants to Greater London Authority in respect of costs
relating to Metronet in the light of its move into administration
(new section AL).
— Reactivate and rename the Railway AME line
(Section AK).
— Conversion of £20 million non cash provision,
which has become available as a result of improved financial management,
to near cash provision to provide additional funding for, a Maritime
and Coastguard Agency internal reorganisation, maritime training,
shared services and the national concessionary travel scheme.
SIGNIFICANT NON-VOTED
CHANGES
— Reserve claim and drawdown of EYF (both capital)
for GLA in respect of Metronet.
— Drawdown of EYF for administration (near
cash) and London & Continental Railways (near cash and capital).
— Funding for the Renewable Fuels Agency (near
cash).
A full summary of the changes in the Estimate is as follows:
Changes that increase the Departmental Expenditure Limit (£763.318
million)
£304 million Reserve claim to part cover a Non-Voted
notional charge (of £454 million in total) scoring within
Capital DEL to reflect the marginal impact on Public Sector Net
Debt in 2007-08 of Metronet's move into administration.
£121.923 million drawdown of near cash End Year Flexibility.
This comprises of £43.598 million for Crossrail (Section
L), £73.183 million for London and Continental Railways (Non
Voted) and £5.142 million for Central Administration (of
which £3.642 million to meet various pressures including
Eddington related work, recruitment costs and building refurbishment
costs (Section X) and £1.5 million for the Non-Voted utilisation
of a dilapidation provision).
£337.395 million drawdown of capital grant End Year Flexibility
This covers:
— £300 million in respect of Metronet,
of which £150 million is for a voted capital grant to the
Greater London Authority to pass on to Transport for London in
recognition of the higher costs of the Metronet works (Section
AJ) and £150 million is Non Voted for the remainder of the
notional charge referred to above; and
— £37.395 million (Non Voted) for London
and Continental Railways to provide cover for their capital expenditure.
Changes that decrease the Departmental Expenditure Limit (£150.500
million)
Transfer to other Government Departments
£0.5 million near cash has been transferred to the Scottish
Executive for the Rail Environmental Benefit Procurement Scheme.
Reclassification from DEL to AME
£150 million non cash in respect of the Highways Agency's
impairments has been reclassified from DEL to AME in accordance
with revisions to the Treasury budgeting guidance. The bulk of
the reclassification was carried out in the Main Estimate 2007-08,
this further amount reflects the revised forecast outturn for
impairments.
Changes that do not increase or decrease the Departmental Expenditure
Limit
£20 million non cash converted to near cash
This conversion, permitted under Treasury's guidelines, is
used to fund the following near cash pressures:
Voted
— £2.028 million for concessionary travel
(Section AE)
— £10.025 million for Shared Services
(Section X).
— £3.1 million for the Maritime and Coastguard
Agency to cover the cost of an internal re-organisation (£2.0m)
and maritime training under the SMaRT scheme (£1.1m) (Section
B).
Non Voted
— £4.847 million for utilisation of provisions
for pensions (£2.847 million); early retirement (£1.5
million); and for the Maritime and Coastguard Agency (£0.5
million).
Departmental Unallocated Provision take-up:
— £4.203 million near cash for Central
Administration (Section X) to meet costs arising from the implementation
of the 2007-08 Business Plan;
— £56.054 million capital (all non voted)
for modernising the Morriston estate (£19 million); Continuous
Insurance Enforcement (£6 million); General Lighthouse Authority's
ship lease (£13.049 million); London and Continental Railways
(£7.605 million) and Shared Services (£10.4 million).
£130.800 million net transfer from Voted to Non-Voted
expenditure
This consists of:
— £9.847 million near cash from Railways
(Section L) for Shared Services (£5.000 million) and utilisation
of provisions (£4.847 million);
— £0.3 million near cash from Powershift
and CleanUp (Section S) for the new Renewable Fuels Agency;
— £7.740 million non cash from Railways
(Section L) for London and Continental Railways (£6.217 million);
Driver and Vehicle Licensing Agency cost of capital charges (£1.394
million) and Shared Services project depreciation (£0.129
million);
— £58.439 million capital grants from
Railways (Section L) for London and Continental Railways;
— £59.951 million from Other transport
grants (capital) (Section AF) for Integrated Transport Block (£35
million); UK Trustports (£21 million) and General Lighthouse
Authority's ship lease (£3.951 million); partially offset
by:
— £1.436 million near cash to Vehicle
and Operator Services Agency enforcement (Section W) from Driver
and Vehicle Licensing Agency; and
— £4.041 capital to Vehicle and Operator
Services Agency (Section V) from Driver and Vehicle Licensing
Agency.
£100.75 million increase in Annually Managed Expenditure
A total of £100.75 million has been added to an AME
provision (Section AK) to cover the following:
— revaluation of the Maritime and Coastguard
Agency building estate (£0.75 million);
— Channel Tunnel Rail Link's provision (£30
million);
— Rail pension liabilities (£70 million).
£1,898.65 million increase in non-budget provision
A total of £40.65 million has been added to a non budget
provision (Section AH) for the following:
— Renewable Fuels Agency, a new NDPB set up
to deal with energy issues (£0.3 million);
— Driver and Vehicle Licensing Agency for Shared
Services, Morriston Estate modernisation and continuous insurance
enforcement (£40.350 million);
— £1,858 million has been included in
a new section (AL) in respect of Greater London Authority for
grants to Transport for London for the use of LUL for the payment
of the Put Option Price (£1700 million) and for costs relating
to Metronet in the light of its move into administration (£158
million).
£6.029 million net transfer from capital grants to capital
expenditure
Voted Capital provision has been increased by a total of
£17.160 million transferred from capital grants for:
— Maritime and Coastguard Agency (Section B)
by £4.250 million for the construction of a Search and Rescue
(SAR) helicopter hangar by transfer from Section AF (Other Transport
Grants).
— Highways Agency (Section E) by £1.3
million for a Community Infrastructure project by transfer from
Section AF.
— Vehicle and Operator Services Agency trading
fund (Section V) by £11.610 million for refurbishment works,
test lane equipment and IT schemes by transfer from Section N
(£6.780 million) and Section AF (£4.830 million).
In the opposite direction, a total of £11.131m of capital
expenditure has been transferred to capital grants for:
— £8.131 million for Railways (Section
L) from Section X in respect of an indexation adjustment to a
budget transfer made at the time of the Main Estimate to the Scottish
Executive in relation to Scottish rail services.
— £3 million for the Vehicle and Operator
Services Agency trading fund (Section V) from Section X for automatic
number plate recognition.
DETAILED EXPLANATION
OF CHANGES
Section A—Ports and shipping services (+£1.3m resource;
+£41m capital)
The resource changes are an increase of £3m non cash
(from Section E) to cover cost of capital charges for the International
Maritime Organisation HQ building, partly offset by near cash
headroom of £1.7m, which has been transferred to Section
B.
The £41m capital is towards the costs of refurbishing
the International Maritime Organisation (IMO) headquarters building
and has been met from additional receipts transferred from Section
C
Section B—Maritime and Coastguard Agency (+£9.060m
resource, +£4.250m capital)
A total near cash increase of £14.4m to fund additional
regulation and enforcement work; higher HM Coastguard and helicopter
fuel costs; additional maritime training under the SMaRT scheme,
and additional costs of providing ship survey certification and
examination services. These extra costs are partly funded by transfers
from Sections A, C and L. The remainder is supported by £5.600m
additional income arising from the provision of services.
An increase to non cash of £0.260m (from Section L)
for extra capital charges on net assets.
The increase of £4.250m capital is mainly for the construction
of the SAR helicopter hangar.
Section C—Aviation services (-£3.2m resource; -£41m
capital income)
The resource decrease is accounted for by -£4.m interest
(to Section B) received from National Air Traffic Services (NATS)
and -£1.2m (to Section X) for dividend income on the NATS
loan, partly offset by an increase of £2.m (from Section
L) of non cash to cover cost of capital charges in respect of
the NATS loan.
The £41m increase in non-operating appropriation-in-aid
receipts is in respect of an early loan repayment by NATS, and
has been used to offset a pressure in Section A.
Section D—Transport security and royal travel (+£0.308m
resource)
Increase of £0.308m resource near cash in respect of
expenditure for transport security (funded from Section G).
Section E—Highways Agency (-£151.849m resource;
+£1.3m capital)
£150m non cash in respect of impairments has been reclassified
from DEL to AME in accordance with revisions to the Treasury budgeting
guidance. The bulk of the reclassification was carried out in
the Main Estimate 2007-08, this further amount reflects the revised
forecast outturn for impairments.
£1.849m near cash has been transferred to Other transport
grants (resource) (Section AE) for de-trunking. In addition, increased
Highways Agency programme expenditure of £25.426m is being
offset by additional fees and charges income and extra contractual
claims.
£1.3m capital has been transferred from the Community
Infrastructure Fund within Other transport grants (capital) (Section
AF) for a Community Infrastructure project that is being delivered
by the Highways Agency.
Section G—Research (-£0.308m resource; -£0.402m
capital)
£0.308m near cash headroom has transferred to section
D
£0.402m capital headroom from a reduced requirement
for transport technology and standards has transferred to meet
pressures on Section V
Section H—Statistics, censuses and surveys (+£2.851m
resource)
An adjustment of £2.851m has been made for consultancy
costs, fully covered by an offsetting reduction on Section I.
Section I—Consultancies and other services for roads
and local transport (-£2.851m resource)
Consultancy costs have been reduced by £2.851m and cover
transferred to Section H.
Section L—Railways (-£58.230m resource)
£43.598m take-up of near cash End Year Flexibility for
Crossrail to support the Crossrail Bill and project development
work.
£40m near cash headroom arising from reduced subsidies
paid to better performing Train Operating Companies has been used
to offset pressures in Sections AE (£18.472m), X (£3.917m),
Non-Voted (£1m) and £16.611m has been used to meet Crossrail
costs within Section L. £4m headroom associated with the
reclassification of consultancy expenditure has been transferred
to Non Voted.
£60m higher than expected Farebox near cash income from
GNER following its reclassification as a public corporation has
been used to meet Crossrail costs.
£30.2m non cash headroom arising from the write back
of the South East Trains station dilapidations provision has been
used to offset pressures in Sections A (£3m), B (£0.26m),
C (£2m), Non Voted (£4.94m) and £20m non-cash provision,
resulting from improved financial management, has been converted
to near cash provision and used to meet pressures in Sections
AE (£2.028m), X (£10.131m), B (£2.994m) and Non
Voted (£4.847m). In addition £2.8m arising from the
negative cost of capital charges associated with Rail balance
sheet liabilities has been transferred to Non Voted.
£17m in capital grants has been transferred from Sections
X (£8.131m) and AF (£8.869m) to meet costs arising from
an indexation adjustment to a budget transfer made at the time
of the Main Estimate to the Scottish Executive in relation to
Scottish rail services.
£58.439m of headroom in Network Grant arising from movements
in prices since the budget was originally set, has been transferred
to Non Voted.
Section N—Freight grants (-£0.5m resource, -£6.78m
capital)
£0.5m near cash has been transferred to the Scottish
Executive for the Rail Environmental Benefit Procurement Scheme.
£6.78m capital grants headroom from a reduced private
sector freight capital requirement has been transferred out to
Section V
Section P—Vehicle Excise Duty enforcement (+£0.3m
resource)
Provision for the appropriation-in-aid receipts has been
revised down by £0.3m owing to a shortfall in enforcement
receipts.
Section Q—Vehicle Certification Agency enforcement (-£0.3m
resource)
A reduction of £0.3m near cash resulting from headroom
in enforcement work.
Section S—Power Shift and Cleanup (-£0.3m resource)
Transfer of £0.3m to provide non-voted budget cover
for the Renewable Fuels Agency.
Section T—Dartford River Crossing (-£1.883m resource)
Appropriation-in-aid receipts have increased by £1.883m
to reflect a revised forecast of toll receipts, offset by increased
expenditure on Section AE.
Section U—Driving Standards Agency trading fund (+£30.8m
capital)
Capital provision has increased by £30.8m to cover multi-purpose
test centres, the Certificate of Professional Competence and new
headquarters, fully offset by a transfer from Section Z.
Section V—Vehicle and Operator Services Agency trading
fund (+£3m resource; +£20m capital)
The capital grant provision has been increased by £3m
for automatic number plate recognition offset by a transfer from
Section X.
Capital provision has increased by £20m to cover a number
of schemes including refurbishment and relocation of stations
and area offices, test lane equipment and IT schemes including
investment in core technology. This is being met from a number
of sections as follows; £4.041m from Non Voted, £0.402m
from Section G, £11.610m from Section N, £3.495m from
Section Z, £0.452m from Section AC and £4.830m from
Section AF.
Section W—Driver, Vehicle and Operator Group—enforcement
(+£1.436m resource)
An increase in resource near cash of £1.436m for a restructuring
programme, strategic review and additional IT licences, funded
by a transfer from Non Voted.
Section X—Central administration (+£24.870m resource;
-£11.131m capital)
The resource increase includes; £7.845m for administration
budgets to fully provide for opening allocations agreed in the
Business Plan 2007-08, together with in year pressures concerning
the implementation of Eddington work, recruitment and buildings
costs and, supporting a shortfall in income arising from services
provided to Other Government Departments; and £17.025m of
other current budget related to the cost of implementing the Shared
Services Project. £4.203m of this increase is covered by
non voted Departmental Unallocated Provision within the existing
Administration Budget; the remaining £3,642k is from End
Year Flexibility. The capital headroom of £11.131m has been
used to support pressures mentioned above in Sections L and V;
this headroom has arisen mostly due to delays in implementing
project plans, including infrastructure works in the headquarters
building.
Section Z—Driver, Vehicle and Operator Group central
(including loan pool) (-£34.295m capital)
Capital provision has been reduced by £34.295m as a
result of loans to Trading Funds, by transfer of £30.8m to
Section U and £3.495m to Section V.
Section AC—Government Car and Despatch Agency (-£0.452m
capital)
£0.452m capital headroom has been transferred to Section
V.
Section AE—Other transport grants (resource) (+£22.349m
resource)
Near cash resource has been increased to cover additional
funding for cycling, including the Links to Schools project, Bikeability
and demonstration towns (£8m), and, preparation work on Smartcards
interoperability in London (£0.3m), both covered by a transfer
from Sections L and T
Near cash resource has also been increased by £12.2m
to fund the remaining preparation costs for the introduction of
the national concessionary travel scheme, of which £10.172m
has been covered by a transfer from Section L and £2.028m
from the use of surplus non cash converted to near cash.
A further £1.849m has been transferred from Section
E for de-trunking.
Section AF—Other transport grants (capital) (-£79.2m
resource)
A total of £19.249m in capital grants has moved from
the resource side of the Estimate to the capital side, consisting
of £4.25m for Section B, £1.3m for Section E, £8.869m
for Section L, and £4.83m for Section V.
A further £59.951m has moved to Non-Voted for the Integrated
Transport Block (£35m), UK Trust Ports (£21m) and General
Lighthouse Authority ship leases
Section AG—Highways Agency (+£150m resource)
£150m in respect of impairments has been reclassified
from DEL to AME in accordance with revisions to the Treasury budgeting
guidance. The bulk of the reclassification was carried out in
the Main Estimate 2007-08, this further amount reflects the revised
forecast outturn for impairments.
Section AH—Grant in Aid funding of non-departmental public
bodies and public corporations (+£0.3m non budget resource)
£0.3m to provide grant in aid payments for the Renewable
Fuels Agency.
Section AI—Driver and Vehicle Licensing Agency (trading
fund) (+£40.35m non budget capital)
Grant-in-aid payments to DVLA have been increased by £40.35m
to cover additional costs of shared services (£15.35m), Morriston
Estate modernisation (£19m) and Continuous Insurance Enforcement
(£6m).
Section AJ—Other grants to GLA (+£150m capital)
A new section has been created for a capital grant to the
Greater London Authority to pass on to Transport for London for
costs relating to Metronet in the light of its move into administration.
Section AK—Railways and other expenditure (+£100.75m
resource)
To create £100m budget cover; of which £30m is
for the 2007-08 charge attributable to the CTRL provision and;
£70m is for the estimated movement in Rail pension scheme
assets and liabilities. In addition there is £0.75m non cash
provision for the Maritime and Coastguard Agency to cover the
revaluation of the building estate.
Section AL—Other grants to GLA (+£1,858m capital)
A new non-budget section has been created for capital grants
to the Greater London Authority to pass on to Transport for London
for the use of LUL for the payment of the Put Option Price (£1,700m)
and for costs relating to Metronet in the light of its move into
administration (£158m)
IMPACT ON
PUBLIC SERVICE
AGREEMENT (PSA) TARGETS
The following changes in this Spring Supplementary Estimate
should have no direct impact on delivery against the Department's
PSA targets:
— £150m reclassification of Highways Agency
impairments from DEL to AME (E and AG).
A number of other adjustments are being made in order to
bring funding into line with the latest programme requirements,
or to reallocate funding which has proved to be surplus to programme
requirements in 2007-08. In general, these changes should not
impact significantly on delivery of PSA targets. The most significant
of those changes are:
— The non-budget grant payments for the payment
of the Put Option Price and to replace planned Metronet borrowing
up to 2010 (Section AL) were already reflected in planned public
expenditure aggregates and therefore have no impact on PSA targets;
— The capital grant payment of £150m is to
provide TfL with short term flexibility while the costs associated
with Metronet's administration remain uncertain (Section AJ).
This is not expected to have a significant impact on the delivery
of PSA targets;
— Budget of £120m for Crossrail (Section L)
including £43m EYF; £60m increased rail income; and
£17m use of headroom. Final delivery of Crossrail is beyond
the next PSA timescale (2008-11);
— Increased AME provision of £100m for Rail
(Section AK) which is all non cash and has no impact on PSA targets;
and
— Drawdown of £5m near cash EYF for central
administration (Section X)—no impact on PSA targets.
LINKS TO
OBJECTIVES AND
PSA TARGETS
| Sections | Resource
| Capital | Are in pursuit of Objective:
| Which supports PSA targets: |
| £'000s | £'000s
| | |
All of: E, N, T, AA, AB, AG, AK
Part of: A, C, D, G, H, I, L, U, Y, AE and AH
| 9,700,304 | 1,063,180 |
1. Support the economy through the provision of efficient and reliable inter-regional transport systems by making better use of the existing road network; reforming rail services and industry structures to deliver significant performance improvements for users; and investing in additional capacity to meet growing demand.
| 1. By 2007-08, make journeys more reliable on the strategic road network.
2. Improve punctuality and reliability of rail services to at least 85% by 2006, with further improvements by 2008.
|
| | |
| |
All of: K, O, AD AJ, AL
Part of G, H, I, L, W, X,Y, AE and AF
| 5,312,885 | 1,950 | 2. Deliver improvements to the accessibility, punctuality and reliability of local and regional transport systems through the approaches set out in Objective 1 and through increased use of public transport and other appropriate local solutions.
| 3. By 2010, increase the use of public transport (bus and light rail) by more than 12% in England compared with 2000 levels, with growth in every region.
4. By 2010-11, the 10 largest urban areas will meet the congestion targets set in their Local Transport Plan relating to movement on main roads into city centres.
|
| | |
| |
All of: B, F, J, P, Q, R, S, V, W, Z and AI
Part of : A, C, D, G, I, L, U, AE, AF and AH
| 1,440,885 | 57,105 | 3. Balance the need to travel with the need to improve quality of life by improving safety and respecting the environment.
| 5. Reduce the number of people killed or seriously injured in Great Britain in road accidents by 40% and the number of children killed or seriously injured by 50%, by 2010 compared with the average for 1994-98, tackling the significantly higher incidence in disadvantaged communities.
6. Improve air quality by meeting the Air Quality Strategy targets for carbon monoxide, lead, nitrogen dioxide, particles, sulphur dioxide, benzene and 1,3 butadiene. (Joint target with the Department for Environment, Food and Rural Affairs).
7. To reduce greenhouse gas emissions to 12.5% below 1990 levels in line with our Kyoto commitment and move towards a 20% reduction in carbon dioxide emissions below 1990 levels by 2010, through measures including energy efficiency and renewables. (Joint target with the Department for Environment, Food and Rural Affairs and the Department of Trade and Industry).
|
| |
| | |
All of: M and AC
Part of: G, I, L and X
| 224,189 | 10,503 | 4. Improve cost effectiveness through sound financial management, robust cost control, and clear appraisal of transport investment choices across different modes and locations.
| |
| | |
| |
| Total | 16,678,263
| 1,132,738 | |
|
| | |
| |
DEPARTMENTAL EXPENDITURE
LIMIT
The DEL expenditure for the financial years since 2004-05
is set out in the table below:
PREVIOUS YEARS' EXPENDITURE AGAINST DEPARTMENTAL EXPENDITURE
LIMITS (£'m)
| Year | DEL Budget
| Outturn | Variance
| % |
| Resource | |
| | |
| 2004-05 | 8,354 | 8,186
| -168 | -2% |
| 2005-06* | 6,036 | 5,614
| -422 | -7% |
| 2006-07** | 7,787 | 7,519
| -268 | -3% |
| | |
| |
| Capital | |
| | |
| 2004-05 | 3,398 | 3,293
| -105 | -3% |
| 2005-06* | 6,564 | 6,495
| -69 | -1% |
| 2006-07** | 6,684 | 6,501
| -183 | -3% |
| | |
| |
| Total | |
| | |
| 2004-05 | 11,752 | 11,479
| -273 | -2% |
| 2005-06* | 12,600 | 12,109
| -491 | -4% |
| 2006-07** | 14,471 | 14,020
| -451 | -3% |
* Note: 2005-06 budgets include adjustments of £-3,527k (resource) and £+3,362k (capital) to reflect budget regime and Machinery of Government changes made from 1 April 2006.
** Provisional 2006-07 out-turn figures
| | | |
|
| |
| | |
The changes to the DEL for 2007-08 are set out in the following
table:
| Changes to the Departmental Expenditure Limit in 2007-08
| | | £'000
|
| Voted | Non-voted
| Total DEL |
| Resource | |
| |
| 1 April | 6,252,702
| 451,682 | 6,704,384
|
| Change announced with winter supplementary estimate
| 198,788 | 22,305 | 221,093
|
| Change announced with spring supplementary estimate
| -115,508 | 86,931 | -28,577
|
Total resource Departmental Expenditure Limit
| 6,335,982 | 560,918
| 6,896,900 |
Capital | |
| |
| 1 April | 5,190,007
| 1,370,371 | 6,560,378
|
| Change announced with winter supplementary estimate
| 247,829 | -264,829 | -17,000
|
| Change announced with spring supplementary estimate
| 35,651 | 605,744 | 641,395
|
Total capital Departmental Expenditure Limit
| 5,473,487 | 1,711,286
| 7,184,773 |
| Less depreciation at start of year *
| -356,709 | -316
| -357,025 |
| Less change in depreciation at winter supplementary estimate *
| -1,000 | -5,252
| -6,252 |
| Less change in depreciation at spring supplementary estimate *
| 9,174 | -37,693
| -28,519 |
Total depreciation | -348,535
| -43,261 | -391,796
|
Total Departmental Expenditure Limit
| 11,460,934 | 2,228,943
| 13,689,877 |
| * 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.
| | | |
| |
| |
END YEAR
FLEXIBILITY
The department's EYF has been accumulated by underspends
in previous years. The department uses its EYF to fund ongoing
programmes where slippages have occurred and for the management
of unbudgeted pressures which arise.
| End Year Flexibility |
Administration
costs
|
Other
Resources |
Total
Resource
DEL
| (of
which
Near
Cash)
|
Capital
DEL |
£m
Total
|
| Adjustment for 2005-06 final outturn | 0
| 35 | 35 | 35
| -17 | 18 |
| | |
| | | |
| 2006-07 EYF not taken up | 53
| 103 | 156 | 135
| 177 | 333 |
| | |
| | | |
| 2006-07 underspend | 20 | 248
| 268 | 187 | 182
| 450 |
| | |
| | | |
| Adjustments for classification changes | 0
| -53 | -53 | 0
| -1 | -54 |
| | |
| | | |
| Entitlement * | 73
| 333 | 406 |
357 | 341 |
747 |
| | |
| | | |
| EYF drawdown in winter supplementary estimates
| 0 | 215 | 215
| 215 | 0 | 215
|
| | |
| | | |
| EYF drawdown in spring supplementary estimates*
| 23 | 99 | 122
| 122 | 337 | 459
|
| | |
| | | |
| Balance of accumulated end year flexibility
| 50 | 19 | 69
| 20 | 4 | 73
|
| | |
| | | |
| Of which ringfenced: |
| | | | 4
| 4 |
| * £23m drawdown of Administration costs EYF in the Spring Supplementary Estimates includes £17.5m used for programme.
| | | |
| | |
| |
| | | |
|
ADMINISTRATION BUDGET
The Administration Budget and outturn for the financial years
since 2004-05 is set out in the table below:
ADMINISTRATION BUDGET (PREVIOUS YEARS) £m
| Year | Budget
| Outturn | Variance
| % |
| 2004-05 | 220,970 | 212,202
| -8,768 | 3.9% |
| 2005-06 | 269,923 | 255,226
| -14,697 | 5.4% |
| 2006-07 * | 263,170 | 243,335
| -19,835 | 7.5% |
| * Provisional 2006-07 outturn figures |
| | | |
| |
| | |
CHANGES TO THE ADMINISTRATION BUDGET IN 2007-08 (CURRENT
YEAR)
| £'000 |
| Limit |
| 1 April 2007 | 259,297 |
| Change announcement with winter supplementary estimate
| 30,087 |
| Change announcement with spring supplementary estimate
| 5,142 |
| Administration Budget | 294,526
|
| |
DFT (CENTRAL)
PROVISIONS (1)
| £'000 | Early
retirements
| Greater
London
Authority (3)
| NFC travel concessions | Channel
Tunnel
Rail Link
| Other (4) | Total
|
| Position as at 1 April 2007 |
| | | |
| |
| Balance at 1 April 2007 (2) | 31,451
| 248,000 | 18,500 | 250,839
| 106,685 | 655,475 |
| Provided in year in Main Estimate |
| | 2,181 | |
| 2,181 |
| Provision expected to be used in year | -1,400
| -124,000 | -2,181 |
| | -127,581 |
| Expected unwinding of discount |
| | | |
| |
| Estimated closing balance | 30,051
| 124,000 | 18,500 | 250,839
| 106,685 | 530,075 |
| Changes in Winter Supplementary Estimate |
| | |
| | |
| Estimated closing balance in Main Estimate |
30,051 | 124,000 | 18,500
| 250,839 | 106,685 | 530,075
|
| Extra/new provision in year taken in WSE |
| | 575 |
| | 575 |
| Provision not required written back |
| | | |
| |
| Extra/new provision to be used in year |
| | -575 | |
| -575 |
| Change to unwinding of discount since main estimate
| | | |
| | |
| Estimated closing balance at WSE | 30,051
| 124,000 | 18,500 | 250,839
| 106,685 | 530,075 |
| Changes in Spring Supplementary Estimate |
| | |
| | |
| Estimated closing balance in WSE | 30,051
| 124,000 | 18,500 | 250,839
| 106,685 | 530,075 |
| Extra/new provision in year taken in SSE |
| | |
| | |
| Provision not required written back |
| | | | -37,525
| -37,525 |
| Extra/new provision to be used in year | -5,847
| | | | 5,325
| -522 |
| Change to unwinding of discount since main estimate
| | | 30,000 |
| 30,000 | |
| Estimated closing balance at SSE | 24,204
| 124,000 | 18,500 | 280,839
| 74,485 | 522,028 |
| | |
| | | |
Notes
(1) British Rail and National Freight Company pensions
were previously accounted for as provisions under Financial Reporting
Standard (FRS) 12. The Department has been advised that it should
account for these guarantees as obligations to pay retirement
benefits, in accordance with FRS 17.
(2) At the time of the Main Estimates the 2006-07 Resource
Accounts were not finalised and the closing balance was estimated.
In addition there has been a presentational change for CTRL where
the Schedule 2 provision has been moved from "other"
to be combined with de-risked grants under the Channel Tunnel
Rail Link.
(3) Provision created in respect of a deficit in the
London Underground pension schemes.
(4) Provisions for shipping enquiries, PPP arbiter,
Channel Tunnel toll, Channel Tunnel opex, South East Trains and
CTRL Section 2.
HIGHWAYS AGENCY
PROVISIONS
| £000's | Land and Property Acquisition
| Engineering and Construction Services
| Bridge Strengthening | Tunnels
| Other Liabilities (RCU, 3rd Party Claims & Other)
| Grand Total |
| Position at 1 April 2007 |
| | | |
| |
| Balance at 1 April 2007 | 216,691
| 68,642 | 142,729 | 138,087
| 16,140 | 582,289 |
| Provided in main estimate | 100,000
| 25,000 | — | 220,000
| 7,629 | 352,629 |
| Provision expected to be used in year | (100,000)
| (40,000) | (14,662) | —
| (9,893) | (164,555) |
| Estimated closing balance | 216,691
| 53,642 | 128,067
| 358,087 | 13,876
| 770,363 |
| | |
| | | |
| £000's | Land and Property Acquisition
| Engineering and Construction Services
| Bridge Strengthening | Tunnels
| Other Liabilities (RCU, 3rd Party Claims & Other)
| Grand Total |
| Changes in supplementary estimate |
| | |
| | |
| Estimated closing balance in estimate
| 216,691 | 53,642
| 128,067 | 358,087
| 13,876 | 770,363
|
| Extra new provision in year taken in supplementary
| (9,899) | (9,900)
| — | (123,600)
| — | (143,399)
|
| Extra provision expected to be used in year
| — | —
| — | —
| — | —
|
| Estimated closing balance at supplementary estimate
| 206,792 | 43,742 | 128,067
| 234,487 | 13,876 | 626,964
|
[Stephen K Reeves]
Signed on behalf of the Accounting Officer
| | | |
| | |
|
