Communities and Local Government's Departmental Annual Report 2008 - Communities and Local Government Committee Contents

Explanatory memorandum for the Winter Supplementary Estimate 2008-09 (WSUP 01)

INTRODUCTION

  1.  The changes to Departmental Expenditure Limits which are referred to below were announced by the Secretary of State on 25 November 2008. Changes to Departmental Expenditure Limits, of which the department has two (Main Programmes and Local Government), are not always identical to the changes to the Estimates described below. This is because:

—  some expenditure within Departmental Expenditure Limits (DEL) is non-Voted, while some Voted expenditure is outside Departmental Expenditure Limits; and

—  the Departmental Expenditure Limits consolidate expenditure of the Department with that of the Non-Departmental Public Bodies (NDPBs) which the Department sponsors. The Estimate records expenditure by the Department and its executive agencies only, which includes grant in aid to NDPBs, but not NDPB expenditure itself.

End Year Flexibility

  2.  The End of Year Flexibility (EYF) entitlements were included in the Public Expenditure Outturn White Paper 2007-08 (Cm 7419) which was presented to Parliament by the Chief Secretary to the Treasury in July 2008.

SECTION A: SUMMARY OF CHANGES SOUGHT IN ESTIMATE

  3.  The Department for Communities and Local Government Winter Supplementary Estimate requests additional net resource provision, above Main Estimate totals, of:

—  RFR1	£284.568 million
—  RFR2	£320.825 million

  And reduction in provision for:

—  Voted Capital       £16.993 million

  4.  The Department also seeks an increase of £1,342.375 million to the Net Cash Requirement, resulting from these changes to the RFRs and a cash to accrual adjustment for Overhanging Debt.

  5.  The main policy reasons for taking a Winter Supplementary Estimate are to:

—  reallocate resources within the Departmental Expenditure Limits, with corresponding adjustments to non budget grant in aid, particularly to reflect the establishment of the new Homes and Communities Agency (HCA) with effect from 1 December 2008 (see Annex A);

—  bring forward funding from 2010-11 to 2008-09 in respect of the package of housing measures announced on 2 September 2008—a non-voted DEL increase supported by voted non-budget grant in aid to the HCA (see Annexes A and B);

—  increase Annually Managed Expenditure forecasts for national non domestic rates outturn adjustments, Local Authority Business Growth Initiative schemes and fire service superannuation;

—  draw down funding for the Restoration Fund in relation to the flooding in 2007;

—  draw down end year flexibility for the local government public service agreement programme and for departmental administration;

—  increase provision for appropriations in aid and associated expenditure;

—  give effect to some small transfers to and from other Departments, and between this Department's two Requests for Resources;

—  adjust the Net Cash Requirement to reflect cash paid in 2008-09 for expenditure incurred in 2007-08.

  6.  A summary of the DEL impacts of the changes is set out in section D below.

  7.  The net increases in provision sought in this Supplementary Estimate relate to:

—  Increases outside public expenditure (£620.2 million).

—  Increases in Annually Managed Expenditure (£261.3 million).

—  Draw down of End Year Flexibility (£90.6 million).

—  Draw down of funds from HM Treasury (£30.6 million).

—  A switch of £17.0 million within the Estimate from Capital to Resource.

—  Switches within the RFR, across RFRs, within the DEL or across Government as a whole (£0.2 million to the estimate, but neutral in public expenditure terms).

  offset against:

—  A movement of £414.1 million from the voted to non voted programmes (but neutral in overall public expenditure terms) including £299.8 million of budget transfers to the new Homes and Communities Agency.

  8.  These changes can be divided into those which increase public expenditure overall, and those which reallocate within the existing public expenditure totals or are outside public expenditure totals altogether. As can be seen from the above, it is the increases which are outside public expenditure which make the biggest contribution to the changes in this Supplementary Estimate.

  9.  These are as follows:

—  Increases in DEL totalling £90.6 million funded from the Department's draw down of entitlement to End Year Flexibility (EYF) (see table 1, item 1) and being used:

a.  To provide £8.6 million for central administration costs to cover early exits, increased costs of administering ERDF in internal audit and the Government Offices and restructuring costs.

b.  To provide £82.0 million for Local Government Public Service Agreements to cover planned spending over the amount provided in the Comprehensive Spending Review 2007.

—  Increase in DEL of £30.6 million funded by draw down from HM Treasury for the Restoration Fund for flood recovery (table 1, item 2). This is part of the European funding paid to the UK Exchequer following the flooding in 2007 and has been made available to the Department to distribute to English local authorities.

—  Increases in Annually Managed Expenditure totalling £261.3 million (table 1, item 3) for:

—  Fire Service Superannuation (£22.6 million) to adjust the forecast for fire fighters pensions.

—  National Non Domestic Rates outturn adjustments (£137.0 million) to reflect a higher than estimated level of adjustments to prior year NNDR contributions.

—  Local Authority Business Growth Incentive schemes (£101.7 million) representing the balance of agreed three year funding.

Changes sought which do not increase public expenditure, taken across government

  10.  These are as follows:

a. Increases to non budget spending totalling £620.2 million. (table 1, item 9) These relate to payments which the Department makes but which do not score in public expenditure because they are simply movements of money within Government. The largest element is a net increase of £499.8 million in grant in aid to the new Homes and Communities Agency (see Annex A). The remainder relates to grant in aid increases for regeneration and other programmes for which funding has been transferred from voted to non voted spending and to repayment of loan charges to local authorities.

b. Decreases totalling £414.1 million resulting from net transfers of DEL from the RFRs to non voted budgets (table 1, item 8). £299.8 million relates to payments to the Homes and Communities Agency, £88.7 million is for Thames Gateway programmes and £22.2 million for West Northants Urban Development Corporation. These transfers are largely offset on the Estimate by the non budget grant in aid to support the expenditure.

c. Smaller transfers within DEL. Other changes which are relatively small in value and which lead to no change in total DEL are:

—  Transfers from voted capital to resource within the Estimate: decrease of £17.0 million in voted capital, increase of £17.0 million in resource (capital grants), mainly to credit back amounts transferred to Fire Control in the Spring Supplementary Estimate 2007-08 (table 1, item 4).

—  Net transfers of £0.2 million to other Government departments (table 1, item 5).

—  Net transfers of £1.0 million from RfR1 to RfR2 (table 1, item 6), principally for Audit Commission work on fire and rescue authorities.

—  Changes that net out within the Estimate, involving either switches between lines or increases in Appropriations in Aid funding additional expenditure (table 1, items 7 and 10).

d. A change to the net cash requirement of £737.0 million over and above the Resource Requirement. This is as a result of an accrual for housing Overhanging Debt. There was an accrual of £735 million for Overhanging Debt at the end of the last financial year and the related cash payment did not occur until early April 2008.

  11.  A summary of these resource changes is at table 1 below:

Table 1

			£M
	RFR1	RFR2	Total
Changes which increase public expenditure
1)  End Year Flexibility	8.6	82.0	90.6
2)  Draw down from HM Treasury	30.6	0.0	30.6
3)  Changes in Annually Managed Expenditure	22.6	238.7	261.3
Changes which do not increase public expenditure, taken across Government
4)  Transfers to voted resource from voted capital	17.0	0.0	17.0
5)  Transfers to/from other government departments	0.8	¸1.0	¸0.2
6)  Transfers between the RFRs	¸1.0	1.0	0.0
7)  Transfers within the RFRs	0.0	0.0	0.0
8)  Transfers to/from non-voted spending	¸414.4	0.3	¸414.1
9)  Changes in non-budget spending	620.3	¸0.1	620.2
10)  Changes in A in A, offset by spending	0.0	0.0	0.0
	284.5	320.9	605.4

SECTION B: DETAILED EXPLANATION OF CHANGES (AMOUNTS ARE IN £S)

Changes to RFR1: Improving the quality of life by creating thriving, inclusive and sustainable communities in all regions

  12.  The changes to RfR1, and their implications for DEL and AME budgets, are as follows:

   (DEL budget changes are indicated by an asterisk in the right hand column)

End Year Flexibility

		DEL
£8,644,000	Draw down of resource EYF for Central Administration costs to fund staff redundancies and early retirement, additional transitional demands on internal audit and Government Offices arising from European Regional Development Fund work and resources to cover organisational change and restructuring programmes (RFR1, Section G, administration costs)	*
£8,644,000	Total change to Main Resource DEL
£8,644,000	Total change to Main DEL
£8,644,000	Total change to Estimate

Other changes in DEL spending

		DEL
£30,627,000	Draw down from HM Treasury for the Summer 2007 Flood Restoration Fund (RFR1, Section R, grants). This is a scheme established under section 31 of the Local Government Act 2003 to support the work of local authorities, including fire and police authorities, in helping recovery from the widespread and exceptional flooding of summer 2007	*
Administration: £12,551,000 Other current: £12,551,000	Reclassification of near cash from other current to administration to fund the surrender of the lease on Ashdown House (Victoria). (RfR1, Section G). (Note: This is offset by an equal and opposite transfer of non-cash from administration to programme—see Transfers from voted to non-voted spending below—so that the effect on both the administration budget and near cash within DEL is neutral).	*
Administration: £480,000 Other current: £480,000	Transfer and reclassification of near cash from Central Administration (RfR1, Section G, administration) to the Fire and Rescue Services Improvement Programme (RfR1, Section F, other current) to fund the Crown Premises Inspection Group, whose expenditure now scores outside the administration budget	*
£30,627,000	Total change to Main Resource DEL
£30,627,000	Total change to Main DEL
£30,627,000	Total change to Estimate

Changes in Annually Managed Expenditure

£22,557,000	Increase in AME for Fire Superannuation (RFR1 Section W, grants) to reflect a revised forecast of fire fighters pensions top up grants.
£44,000	Increase in AME for Fire Superannuation (RFR1 Section AB, grants) to reflect the unwinding discount (£123,000) on fire fighters' pensions, partly offset by a reduction in the cost of capital (£79,000).
£22,601,000	Total change to Main Resource AME
£22,601,000	Total change to Main AME
£22,601,000	Total change to Estimate

Transfers to Resource spending (capital grants) from/to Capital spending

£16,000,000	Transfer of savings from Fire Control (RFR1, Section F, capital) to increase provision for Gypsy Traveller's Unit (RFR1 Section N, capital grants) (£5,000,000) and New Deal for Communities (RFR1, Section O, capital grants) (£11,000,000). These offset amounts transferred to Fire Control from these programmes in 2007-08, as set out in the explanatory memorandum to the Spring Supplementary Estimate 2007-08.	*
£1,250,000	Transfer within Fire Services from capital expenditure (RFR1, Section F, capital) to support for local authorities (RFR1, Section R, capital grants) for the CBRN protective clothing project. This is funded from receipts on disposal of Green Goddesses (£821,000) and savings on research (£429,000).	*
£257,000	Transfer of savings within Fire Services Statistics from (RFR1, Section F, capital grants) to Fire Services (RfR1, Section F, capital) to support the maintenance of the Incident Reporting System.	*
ZERO	Total change to Main Capital DEL
ZERO	Total change to Main DEL
ZERO +£16,993,000 resource -£16,993,000 capital	Total change to Estimate

Transfers of budgetary cover to/from other Government Departments

£725,000	Transfer from the Cabinet Office to the Government Office administration budget (RFR1, Section H, administration costs) for the Office of the Third Sector	*
£620,000	Transfer from the Cabinet Office to the central administration budget (RFR1, Section G, administration costs) for the costs of work by Parliamentary Counsel.	*
£500,000	Transfer to the Office of National Statistics from Safer and Stronger Communities and New Ventures Fund (RFR1, Section C, Other Current) as a contribution to improving migration statistics work	*
£45,000	Transfer to HM Treasury/Office of Government Commerce from Central Administration (RFR1, Section G, administration costs) for sustainable procurement.	*
£36,000	Transfer to the Department for Transport from the Government Office administration budget (RFR1, Section H, administration costs) for traffic signage in respect of the Road and Vehicle Safety Standards programme.	*
£764,000	Total change to Main Resource DEL
£764,000	Total change to Main DEL
£764,000	Total change to Estimate

Resource transfers to /from another Request for Resources

£129,000	Transfer of research funding from local government research (RfR2, section C, other current) to contribute to the establishment of a new strategic research budget (RFR1, Section C, other current).	*
£1,000,000	Transfer of uncommitted funds from Fire and Rescue Services Improvement programme (RFR1 Section F, other current) to support Audit Commission Comprehensive Performance Assessment work on fire and rescue authorities (RFR2, Section B, other current).	*
£125,000	Transfer from E-Planning (RFR1 Section E, other current) to Local Government on Line (RfR2, section G, grants) to cover the costs of the National Process Improvement Project as part of the Transformational Planning Project.	*
£996,000	Total change to Main Resource DEL
£996,000	Total change to Main DEL
ZERO
(-£996,000 RFR1
+£996,000 RFR2)	Total change to Estimate

Resource transfers within Request for Resources

£33,000,000	Transfer from Community Infrastructure Fund (RFR1, Section B, grants) to Growth Areas (RfR1, Section N, grants) to fund the additional schemes necessary to complete the Growth Areas programme.	*
£22,300,000	Increase in resources for European Regional Development Fund (RFR1, Section K, grants) to cover ERDF financial corrections in respect of old programmes. This has been funded by transferring uncommitted resources from other programmes, as follows: £5,500,000 from voted provision for the Homes and Communities Agency and £2,000,000 from Thames Gateway (both RfR1, Section B), £2,000,000 from research and £1,000,000 from Sustainable Communities (both RfR1, Section C), £4,000,000 from the Fire Improvement Programme (RfR1, Section F), £5,000,000 from mapping services (RfR1, Section L) and £2,800,000 from the Queen Elizabeth II Conference Centre Agency (RfR1, Section M).	*
£20,107,000	Transfer of resources for Thames Gateway from the private sector grants stream (RFR1, Section B, grants) to local authority grants (RfR1, Section N, grants) to correct a misallocation in the Main Estimate.	*
£11,335,000	Transfers of £10,000,000 from the Settled Homes Initiative and £1,335,000 from the Homelessness and Housing Reform programme (both RfR1, Section B, capital grants) to the Places of Change Programme (RfR1, Section N, capital grants) to increase the impact of this programme, for which the bidding round was greatly oversubscribed, on tackling rough sleeping.	*
£8,750,000	Transfer of resources from Central Administration (RfR1, Section G, administration) to Government Office Administration (RFR1 Section H, administration) comprising £6,323,000 to cover core work, £977,000 to cover work on Local Area Agreements/Local Public Service Agreements and £1,450,000 to cover additional work on the European Regional Development Fund.	*
£5,602,000	Transfer of resources from the Local Enterprise Growth Initiative (RfR1, Section O, grants) to Area Based Grants (RFR1 Section S, grants) to correct an error in the Main Estimate.	*
£4,100,000	Transfer of uncommitted resources from New Deal for Communities (RfR1, Section O, grants) to voted provision for the Homes and Communities Agency—remuneration and pension programme (RFR1 Section B, grants) to help cover the pension deficit of the Housing Corporation. This is an historic deficit calculated by City of Westminster actuaries and, to avoid one-off crystallisation of more than £75 million, annual contributions are likely to be agreed.	*
£2,400,000	Increase in funding for Sustainable Communities Communications (RFR1 Section C, other current) to facilitate consultation on and communication of the objectives of the eco-towns programme in multiple locations across England. Funded by transferring uncommitted resources of £2,150,000 from Implementing Planning Reform (RfR1, Section E, other current) and £250,000 from Building Regulations (RfR1, Section B, other current).	*
£1,552,000	Transfer of resources from Central Administration (RfR1, Section G, other current) to Government Office Administration (RFR1 Section H, Other Current) for staff early exit costs.	*
£1,250,000	Transfer of resources within the Fire and Rescue Services Improvement Programme from central government spending (RFR1 Section F, other current) to local authority grants (RfR1, Section R, grants) to support safety and security expenditure by London Fire and Emergency Planning Authority and Dorset Fire Authority arising from the 2012 Olympics.	*
£1,200,000	Transfer of resources from Implementing Planning Reform (RfR1, Section E, other current) to Home Buying and Selling (RFR1, Section B, other current) to facilitate the publicity campaign to reinforce the benefits of Home Information Packs.	*
£650,000	Increase in funding for Zero Carbon Buildings (RFR1, Section B, other current) to support the establishment and operation of the zero carbon delivery hub. This is a non-profit company whose activities support industry in building zero carbon homes and non domestic buildings. Funded by transfer of uncommitted resources from Implementing Planning Reform (RfR1, Section E, other current).	*
£644,000	Establishment of a Strategic Research Budget (RFR1 Section C, other current) by transferring resources from other budgets as follows: £374,000 from Building Regulations (RfR1, Section B, other current), £169,000 from Cohesion and Race Equality (RfR1, Section D, grants) and £101,000 from Fire Services (RfR1, Section F, other current).	*
£100,000	Increase in funding for Housing Corporation—remuneration and pension programme (RFR1 Section B, other current) to cover pay rises, National Insurance and other increased staff costs. Funded by a transfer of funds from Implementing Planning Reform (RfR1, Section E, other current)	*
£112,990,000	Reductions in budgets to meet increases, as detailed for individual items above.	*
ZERO	Total change to Main Resource DEL
ZERO	Total change to Main Capital DEL
ZERO	Total change to Main DEL
ZERO	Total change to Estimate

Transfers from voted to non-voted spending

£299,770,000	To transfer resources from various voted programmes to non voted Homes and Communities Agency (HCA) to reflect the financial implications of the establishment of the HCA on 1 December, and the wind up of the Housing Corporation and English Partnerships. This comprises transfers from RfR 1, Section B (other current £1,160,000; grants £150,000, capital grants £99,722,000), Section C (other current £18,000; grants £4,214,000), Section E (other current £1,250,000), Section G (administration non-cash £12,551,000) and Section N (grants £13,745,000; capital grants £166,960,000). This contributes to the requirement for additional, non-budget, grant in aid under RFR1, Section X to support this non-voted DEL expenditure. (See Annex A for further information).	*
£88,700,000	Transfer of DEL cover from voted Thames Gateway budget in RFR1, Section B (other current non-cash £3,000,000; grants £12,000,000; capital grants £73,700,000) to non voted budgets for NDPBs delivering Thames Gateway projects—London Urban Development Corporation (£47,515,000), Thurrock Urban Development Corporation (£36,285,000) and the South East of England Development Agency (£4,900,000)—following decisions on the allocation of budgets under the programme. This gives rise to the requirement for additional non-budget grant in aid under RFR1, Section X to support the near cash element (£85,700,000) of this non voted expenditure.	*
£21,219,000	To transfer resources from voted New Growth Points in RFR1, Section B (grants £4,460,000; capital grants £16,759,000) to non-voted DEL cover for expenditure by West Northants Urban Development Corporation as agreed in their 2008-09 Corporate Plan. There is a requirement for additional non-budget grant in aid under RFR1, Section X to support this non-voted DEL expenditure.	*
12,650,000	To transfer resources from the non voted New Burdens on Local Authorities programme to Area Based Grants (RfR1, Section S, grants) comprising £7,650,000 for the costs estimated in an Impact Assessment associated with local planning authorities implementing new national planning policy on climate change, and £5,000,000 for compliance with the Habitats Directive following a court case in the European Court of Justice in 2005.	*
£9,000,000	To transfer funding from the voted Implementing EU Performance of Building Directives (EPBD) programme (RFR1 Section B, grants) to non-voted Departmental Unallocated Provision (DUP). This transfer reduces voted EPBD DEL cover to reflect the movement of activity from EPBD to Housing Revenue Account Subsidy (HRAS) in Annually Managed Expenditure (AME). It replenishes DUP, from which DEL cover was given up after the RfR tables for the Main Estimate had been finalised.	*
£6,300,000	Transfer from non voted New Burdens on Local Authorities to voted provision for the Homes and Communities Agency (RfR1, Section B, other current), to help cover a pension deficit in respect of Housing Corporation staff. (See also transfer of £4.1 million within RfR1, above).	*
£4,353,000	To transfer resources from the Fire and Rescue Services Improvement programme (RFR1, Section F, grants) to non-voted Firebuy to cover their cash flow and the Integrated Clothing Project litigation costs.	*
£4,000,000	Transfer from voted provision for the Homes and Communities Agency (RfR1, Section B, other current) to the non voted English Partnerships to fund HCA set up costs (see Annex A).	*
£3,700,000	Transfer from voted provision for the Homes and Communities Agency (RfR1, Section B, other current) to the non voted Housing Corporation to fund HCA set up costs (see Annex A).	*
£2,500,000	To transfer resources from Implementing Planning Reform (RFR1, Section E, grants) to non-voted English Partnerships to fund the ATLAS programme hosted by them.	*
£1,500,000	To transfer resources from the non-voted Housing Corporation budget to Disabled Facilities Grant (RfR1 Section N, capital grants), to reflect the decision that the Housing Corporation would no longer fund adaptations and instead direct Registered Social Landlords to local authorities for assistance. The resources are required to help local authorities meet their statutory responsibilities for providing grants for adaptation works to help disabled people live more independently in their homes.	*
£1,500,000	To transfer resources from voted Community Empowerment (RFR1, Section D, grants) to non-voted Community Development Foundation in line with funding decisions taken in the Comprehensive Spending Review 2007. This gives rise to a requirement for non budget grant in aid under RfR1, section X.	*
£1,350,000	To transfer resources from the non voted New Burdens on Local Authorities programme to Regional Assemblies (RfR1, Section E, grants) to fund the estimated costs to regional planning bodies associated with implementing the Planning Policy Statement on climate change.	*
£800,000	To transfer within Growth Areas from voted provision (RFR1, Section B, grants) to non-voted DEL cover for the Department's contribution towards the running costs of Milton Keynes Partnerships. This leads to a requirement for additional non-budget grant in aid under RFR1, Section X to support this non-voted DEL expenditure.	*
£500,000	To transfer resources from Implementing Planning Reform (RfR1, Section E, other current) to the non-voted Housing Corporation budget to fund extra work undertaken in connection with the establishment of the Homes and Communities Agency.	*
£165,000	To transfer non-cash resources from the Planning Inspectorate (RfR1, Section E, other current) to non voted West Northants Urban Development Corporation to cover depreciation charges on work undertaken within the Growth Areas remit.	*
ZERO	Total change to Main Resource DEL
ZERO	Total change to Main Capital DEL
ZERO	Total change to Main DEL
£414,407,000	Total change to Estimate

Changes in non budget spending

£2,047,160,000	Grant in aid allocation to non voted Homes and Communities Agency (HCA)—including £930,000 for repayment of an advance from the Contingencies Fund—to reflect the financial implications of the establishment of the HCA on 1 December (see Annex A),
£1,449,390,000	Reduction in grant in aid to the Housing Corporation in relation to the establishment of the HCA (RfR1, Section X, grants) (see Annex A).
£98,000,000	Reduction in grant in aid to English Partnerships in relation to the establishment of the HCA (RfR1, Section X, grants) (see Annex A).
£85,700,000	Grant in aid to support non voted budget allocations to NDPBs under the Thames Gateway programme, as follows: £46,200,000 for London Urban Development Corporation, £35,800,000 for Thurrock Urban Development Corporation and £3,700,000 for the South East of England Development Agency. (See transfers to/from non voted spending, above). (RfR1, Section X, grants).
£22,019,000	Grant in aid allocation to support non voted budget allocations for Growth Areas comprising £21,219,000 for West Northants Development Corporation and £800,000 for the Milton Keynes Partnerships project. (See transfers to/from non voted spending, above). (RfR1, Section X, grants).
£7,000,000	Draw down of funding to cover loan charges. This funding covers repayments to local authorities for monies they paid out in respect of the Defective Housing scheme between 1984 and 1989 for the repurchase or repair of properties (RfR1, Section X, grants).
£4,353,000	Grant in aid to support non voted budget allocation to Firebuy (see transfers to/from non voted spending, above). (RfR1, Section AA, grants).
£1,500,000	Grant in aid to support non voted budget allocation to the Community Development Foundation (see transfers to/from non voted spending, above). (RfR1, Section AA, grants).
ZERO	Total change to Main DEL
£620,342,000	Total change to Estimate

Changes in Appropriations in Aid fully offset by changes in spending

Spend: £21,830,000, Receipts: £21,830,000 (net change zero)	Changes to budget reflecting an increase in receipts from sponsor Departments for work undertaken by Government Offices on their behalf, and for which they are invoiced, and associated expenditure (RFR1, Section H).	*
Spend: £11,010,000 Receipts: £11,010,000 (net change zero)	Changes to budget reflecting the increase in receipts for Planning Inspectorate (RFR1, Section E) from Local Development Framework and other appeals and enquiries, and funds from other government departments as agreed in the CSR07.	*
Spend: £7,755,000 Receipts: £7,755,000 (net change zero)	Changes to budget reflecting a decrease in expenditure and income for central administration (RFR1, Section G) following the surrender of the Ashdown House lease.	*
Spend: £2,800,000 Receipts: £2,800,000 (net change zero)	Changes to budget reflecting the exceptional dividend from Queen Elizabeth II Conference Centre (RFR1, Section M), to reduce their cash balance to an appropriate level. This increase in receipts is fully offset by an increase in budget, which has been transferred to cover additional expenditure on ERDF for financial corrections (RFR1, Section K)	*
Spend: £1,097,000 Receipts: £1,097,000 (net change zero)	Changes to budget reflecting increases in receipts for Fire and Rescue Services Improvements (RFR1 Section F) and expenditure they support against the programme. These receipts comprise £386,000 for interest payments from the Fire Service College; £270,000 from agent selling Green Goddesses and £441,000 from fire and rescue services to cover the costs of providing Boards of Medical Referees.	*
Spend: £1,000,000 Receipts: £1,000,000 (net change zero)	Changes in budgets to take account of an expected £1,000,000 cash receipt from the Office of Third Sector as a contribution to the Community Builders Fund and the expenditure it supports against the Community Empowerment programme (RFR1, Section D).	*
Spend: £1,000,000 Receipts: £1,000,000 (net change zero)	Changes reflecting the increase in receipts for English Partnerships (RFR1, Section X), from claw back of Derelict Land Grant, and the expenditure they support.
Spend: £821,000 Receipts: £821,000	Changes to budgets reflecting increases in capital receipts (non-operating appropriations in aid) for Fire and Rescue Services Improvements (RfR1, section F, capital) and the expenditure they support. The receipts comprise £790,000 from disposal of Green Goddesses and £31,000 from Fire Service College capital loan repayments. The expenditure budget increase is transferred to capital grants to local authorities (RfR1, Section R) in support of the CBRN protective clothing project.	*
Spend: £648,000 Receipts: £648,000 (net change zero)	Changes to budget reflecting a repayment of capital grants for Growth Areas (RFR1, Section N), due to project slippage.	*
Spend: £410,000 Receipts: £410,000 (Net change zero)	Changes in budgets reflecting receipts from the Department of Work and Pensions and the Ministry of Justice for the Communities and Local Government project on Homelessness and Housing Reform (RFR1, Section B) and the expenditure they support (RFR1, Section N).	*
ZERO	Total change to Main DEL
ZERO	Total change to Estimate
	The changes in capital (related to RFR1) and their implications for DEL and AME budgets are as follows:

Transfers from Capital spending to/from other resource (capital grants)

£16,000,000	Transfer of savings from Fire Control (RFR1, Section F, capital) to increase provision for Gypsy Traveller's Unit (RFR1 Section N, capital grants) (£5,000,000) and New Deal for Communities (RFR1, Section O, capital grants) (£11,000,000). These offset amounts transferred to Fire Control from these programmes in 2007-08.	*
£1,250,000	Transfer within Fire Services from capital expenditure (RFR1, Section F, capital) to support for local authorities (RFR1, Section R, capital grants) for the CBRN protective clothing project. This is funded from receipts on disposal of Green Goddesses (£821,000) and savings on research (£429,000).	*
£257,000	Transfer of savings from Fire Services Statistics (RFR1, Section F, capital grants) to Fire Services (RfR1, Section F, capital) to support the maintenance of the Incident Reporting System.	*
ZERO	Total change to Main Capital DEL
ZERO	Total change to Main DEL
ZERO
-£16,993,000 capital
+£16,993,000
resource	Total change to Estimate

Changes to RFR2: Providing for effective devolved decision making within a national framework

  13.  The changes to RfR2, and their implications for DEL and AME budgets, are as follows:

Take up of End year Flexibility

£82,000,000	Draw down of End Year Flexibility for the Local Government Public Service Agreements performance fund (RFR2, Section G, capital grants) to cover planned spending in excess of the amount provided in the Comprehensive Spending Review 2007.	*
£82,000,000	Total change to Local Government capital DEL
£82,000,000	Total change to Local Government DEL
£82,000,000	Total change to Estimate

Changes in Annually Managed Expenditure

£137,000,000	Increase in AME for National Non Domestic Rates outturn adjustments to reflect the latest forecast spend (RFR2, Section H). Estimated additional funding to pay local authorities additional amounts owed following the audit of NNDR claims from previous years. The amount of NNDR contributions which billing authorities must pay the Department is estimated at the beginning of the financial year and paid in instalments during the year. At the end of the year a final assessment is made and an outturn adjustment is made. The amount of these adjustments is not known until well into the new financial year, hence the need for a supplementary estimate at this time. This is a regular request.
£101,709,000	Increase in AME for Local Authority Business Growth Incentive Schemes (LABGI) (RFR2, Section H, grants). This is the balance of the agreed three year funding worth £935,000,000 overall. Originally budgeted for last year—it was held back pending the outcome of a court ruling.
£238,709,000	Total change to Local Government Resource AME
£238,709,000	Total change to Local Government AME
£238,709,000	Total change to Estimate

Transfers of budgetary cover to/from other Government Departments

£1,000,000	This money is transferred from Local Government on Line (RFR2 Section G, capital grants) to the Department for Work and Pensions (DWP) to facilitate more efficient electronic transfer of data between DWP, Communities and Local Government, the Department for Children Schools and Families (DCSF) and local authorities	*
£1,000,000	Total change to Local Government Capital DEL
£1,000,000	Total change to Local Government DEL
£1,000,000	Total change to Estimate

Resource transfers to/from another Request for Resources

£1,000,000	Transfer of uncommitted funds from the Fire and Rescue Services Improvement programme (RFR1 Section F, other current) to RFR2 to support Audit Commission Comprehensive Performance Assessment work on fire and rescue authorities (RFR2, Section B, other current).	*
£125,000	Transfer from E-Planning (RFR1 Section E, other current) to Local Government on Line (RfR2, section G, grants) to cover the costs of the National Process Improvement Project as part of the Transformational Planning Project.	*
£129,000	Transfer of research funding from local government research (RfR2, section C, other current) to contribute to a new strategic research budget (RFR1, Section C, other current).	*
£996,000	Total Change to Local Government Resource DEL
£996,000	Total change to Local Government DEL
ZERO (+ £996,000 RFR2 -£996,000 RFR1)	Total change to Estimate

Transfers from non-voted spending

£267,000	Final repayment of Valuation Tribunal Service (Non Voted) DEL overspend from a previous year to the Bellwin scheme (RFR2, Section G, grants)	*
ZERO	Total change to Local Government Resource DEL
ZERO	Total change to Local Government DEL
£267,000	Total change to Estimate

Resource transfers within the Request for Resources

£1,200,000	To transfer resources to the Council Tax Flood Discount programme (RFR2, Section G, grants) from Valuation Services (RfR2, section A, other current) to compensate local authorities for flood related discounts on Council Tax.	*
£1,200,000	Transfer to fund an increase for Council Tax Flood Discount programme as shown above.	*
ZERO	Total change to Local Government Resource DEL
ZERO	Total change to Local Government DEL
ZERO	Total change to Estimate

Changes in non budget spending

£147,000	Reduction in grant in aid for Valuation Tribunal Services (RFR2, Section I) to reflect reduced level of near cash DEL cover.
ZERO	Total change to Local Government DEL
£147,000	Total change to Estimates

Changes in operating Appropriations in Aid fully offset by changes in spending

Spend: £32,000,000 Receipts: £32,000,000 (Net change zero)	Changes to budget reflecting receipts for Local Government Public Service Agreements (RFR2 Section G), arising from repayment of capital grants by local authorities, and the expenditure they support.	*
ZERO	Total change to Local Government DEL
ZERO	Total change to Estimate

SECTION C: IMPACT ON THE DEPARTMENT'S STRATEGIC OBJECTIVES

  14.  DEL expenditure against the Department's Strategic Objectives will change as set out in the following table:

Table 2

						£M
Departmental Strategic Objective	DEL at Main Estimates	EYF / Funds from HMT/ Brought forward funds	Transfers to/from DUP	Transfers to/from OGDs	Transfers between DSOs	New DEL Budgets at Winter Supps
1.  Supporting local government	24,816.3	82.0	0.0	¸1.0	1.0	24,898.3
2.  Improving the supply and quality of housing	7,201.5	209.8	¸3.7	0.0	30.4	7,438.0
3.  Building prosperous communities, promoting regeneration and tackling deprivation	2,501.1	0.0	0.0	¸0.5	¸1.3	2,499.3
4.  Developing communities that are cohesive, active and resilient to extremism	41.4	0.0	0.0	0.0	¸1.7	39.7
5.  Providing a more efficient and transparent planning system	194.3	0.0	0.0	0.0	¸27.6	166.7
6.  Ensuring safer communities by providing the framework to prevent and respond to emergencies	297.0	30.6	0.0	0.0	¸20.6	307.0
Not assigned to a DSO (see note iii below), including administration and other costs	1,042.4	8.6	3.7	1.3	19.7	1,075.7
Total Main and Local Government DEL change (before depreciation)	36,094.0	331.1	0.0	¸0.2	0.0	36,424.8
Less administration costs (before depreciation)	280.3	8.6	0.0	1.3	¸0.5	289.7
Total change (excluding administration costs)	35,813.7	322.4	0.0	¸1.5	0.5	36,135.1

  Notes:

  i.  Amounts may not sum exactly due to rounding.

  ii.  The Local Government DEL contributes entirely to DSO 1 (Supporting local government).

  iii.  The "not assigned" section of the table comprises Area Based Grant, European Regional Development Fund, departmental unallocated provision, central administration costs, Government Offices administration costs and CLG re-structuring, payments for Ordnance Survey mapping data and services and the Queen Elizabeth II Conference Centre.

  15.  The main budget changes which lead to increases to 2008-09 DEL expenditure against DSOs are:

—  a draw down of end year flexibility for DSO1, increasing provision for the Local Government PSA performance fund (£82.0 million);

—  an increase in budget for DSO2 as a result of the Housing Package announced over the summer (£200.0 million) and the establishment of the Homes and Communities Agency (£9.8 million);

—  a draw down of funds from HM Treasury against DSO6 for the flood Restoration Fund (£.30.6 million); and

—  a draw down of end year flexibility in the "unassigned" section for central administration (£8.6 million).

  16.  With the exception of the drawdown for the flood Restoration Fund, additional resources have been provided mainly through using EYF and bringing forward funding from future years. This is largely pre-planned use of funding and is not increasing the planned spend to deliver targets above what was expected over the Comprehensive Spending Review years.

  17.  Further detail of changes by DSO is set out below. Changes relate to DEL and may not therefore match the totals shown in Estimates—some funding will relate to non voted expenditure. Full details of changes to budgets are given in Section B above.

DSO1—Supporting local government

Drawdown of End Year Flexibility

—  £82,000,000 for the Local Government PSA performance fund.

Transfers to/from other Government Departments

—  £1,000,000 to the Department for Work and Pensions for improved electronic data transfer between DWP, CLG, DCSF and local authorities.

Transfers between DSOs

  There is a net increase of £996,000 comprising increases of:

—  £1,000,000 from Fire and Rescue Services Improvement (DSO6) to Best Value Inspection for Audit Commission work on fire and rescue authorities;

—  £125,000 from E-Planning (DSO5) to Local Government on Line for the National Process Improvement project;

  offset against a decrease of:

—  £129,000 from local government research to DSO3 for a new strategic research budget.

DSO 2—Improving the supply and quality of housing

Drawdown of End Year Flexibility and Funds Brought Forward

  There is an increase of £209,800,000 comprising:

—  £200,000,000 brought forward from future years spend as a result of the Housing Package announced on 2 September 2008 (see Annex B);

—  £9,800,000 for the Homes and Communities Agency reflecting adjustments to the Department's near cash DEL to ensure budget neutrality over the Comprehensive Spending Review years in the transition to the new Agency (see Annex A).

Transfers to/from Departmental Unallocated Provision

  There is a net decrease of £3,695,000 comprising increases of:

—  £3,555,000 from non voted Departmental Unallocated Provision (DUP) (not assigned to a DSO) for non voted Thames Gateway (£3,370,000 for Thurrock Urban Development Corporation (UDC) and £185,000 for non voted London UDC to cover non cash costs that will be incurred this financial year; and

—  £1,750,000 from non voted DUP to non voted Housing Corporation to cover the costs of taking on second charges on properties under HomeBuy Direct and to fund capitalisation on existing assets;

  offset against a decrease of:

—  £9,000,000 to non voted DUP to adjust DEL cover for the voted Implementing EU Energy Performance of Building Directives programme (further details are in Section B).

Transfers between DSOs

  There is a net increase of £30,424,000 comprising increases of:

—  £1,200,000 from DSO5 for Home Buying and Selling to facilitate a publicity campaign to reinforce the benefits of Home Information Packs;

—  £650,000 from DSO5 for Zero Carbon Building to support the establishment and operation of the zero carbon delivery hub;

—  £15,882,000 from DSO3 (£8,332,000) and DSO5 (£7,550,000) for the Homes and Communities Agency, of which £10,400,000 is to help cover the historic pension deficit of the Housing Corporation and the remainder is part of the budget for the new Agency;

—  £600,000 from DSO5 for the Housing Corporation comprising £100,000 to cover remuneration and pension costs; and £500,000 to fund extra work undertaken in connection with the establishment of the Homes and Communities Agency;

—  £5,000,000 for the Gypsy Travellers Unit from Fire Control (DSO6), offsetting an amount transferred to that programme in 2007-08;

—  £15,051,000 to English Partnerships comprising £2,500,000 from DSO5 to fund the ATLAS programme and £12,551,000 from central administration (not assigned to a DSO) to cover the increased cost of capital charges resulting from a revaluation of assets associated with the establishment of the Homes and Communities Agency; and

—  £165,000 from DSO5 for West Northants Urban Development Corporation to cover depreciation charges on work undertaken within the Growth Areas remit.

  offset against decreases of:

—  £374,000 from Building Regulations to DSO3 for a new Strategic Research Budget;

—  £7,500,000 to European Regional Development Fund (not assigned to a DSO) to cover financial corrections on old ERDF programmes;

—  £250,000 from Building Regulations to Sustainable Communities Communications (DSO3) for consultation on and communication of the objectives of the eco-towns programme.

DSO 3—Building prosperous communities, promoting regeneration and tackling deprivation

Transfers to/from other Government Departments

—  £500,000 to the Office of National Statistics as part of the Department's contribution to improving Migration Statistics work.

Transfers between DSOs

  There is a net decrease of £1,261,000 comprising increases of:

—  £2,400,000 for Sustainable Communities Communications, comprising £2,150,000 from DSO5 and £250,000 from DSO2, to facilitate consultation on and communication of the objectives of the eco-towns programme in multiple locations across England;

—  £644,000 from DSO1 (£129,000), DSO2 (£374,000), DSO4 (£169,000) and DSO6 (£101,000) for a new Strategic Research Budget;

—  £11,000,000 for the New Deal for Communities from Fire Control (DSO6), offsetting an amount transferred to that programme in 2007-08; and

—  £1,500,000 from Community Empowerment (DSO4) to the Community Development Foundation to reflect decisions taken in the Comprehensive Spending Review 2007;

  offset against decreases of:

—  £8,332,000 to the Homes and Communities Agency (DSO2) comprising £4,100,000 to cover the pension deficits from the Housing Corporation and the remainder as part of the budget for the new Agency;

—  £3,000,000 for the European Regional Development Fund (not assigned to a DSO) to cover financial corrections on old ERDF programmes; and

—  £5,602,000 to Area Based Grant (not assigned to a DSO) to correct an error in the Main Estimate.

DSO 4—Developing communities that are cohesive, active and resilient to extremism

Transfers between DSOs

  There is a reduction of £1,669,000 comprising:

—  £1,500,000 to the Community Development Foundation (DSO3) from Community Empowerment to reflect decisions taken in the Comprehensive Spending Review 2007; and

—  £169,000 to DSO3 for a new Strategic Research Budget.

DSO 5—Providing a more efficient and transparent planning system

Transfers between DSOs

  There is a decrease of £27,590,000, comprising:

—  £18,950,000 from New Burdens on Local Authorities—£12,650,000 to Area Based Grants (not assigned to a DSO), of which £7,650,000 is for the costs estimated in an Impact Assessment associated with local planning authorities implementing new national planning policy on climate change and £5,000,000 is for compliance with the Habitats Directive following a court case in the European Court of Justice; and £6,300,000 to the Homes and Communities Agency (DSO2) to help cover the pension deficit in respect of Housing Corporation staff;

—  £8,350,000 from Implementing Planning Reform comprising £2,500,000 to DSO2 to fund the ATLAS programme hosted by English Partnerships, £2,150,000 to DSO3 to facilitate consultation on and communication of the objectives of the eco-towns programme, £1,750,000 to DSO2 to contribute to the budget of the Homes and Communities Agency, £1,200,000 to DSO2 for the publicity campaign to reinforce the benefits of Home Information Packs, £650,000 to DSO3 to support the establishment and operation of the zero carbon delivery hub and £100,000 to DSO2 for Housing Corporation remuneration and pension costs;

—  £165,000 from the Planning Inspectorate to cover depreciation charges on work undertaken by West Northants UDC within the Growth Areas remit (DSO3); and

—  £125,000 from E-Planning to Local Government on Line (DSO1) to cover the costs of the National Process Improvement Project as part of the Transformational Planning Project.

DSO 6—Ensuring safer communities by providing the framework to prevent and respond to emergencies

  Draw down of funds:

—  £30,627,000 from HM Treasury for the Restoration Fund for flood recovery. This is part of the European funding paid to the UK Exchequer following the flooding in 2007 and has been made available to this Department to distribute to English local authorities.

Transfers between DSOs

  There is a net decrease of £19,721,000 comprising an increase of:

—  £480,000 from central administration (not assigned to a DSO) to Fire Services for the Crown Premises Inspection Group programme. This expenditure is to be categorised as programme expenditure in the future;

  offset against decreases of:

—  £16,000,000 from Control Rooms comprising £5,000,000 to the Gypsy Travellers Unit (DSO2) and £11,000,000 to New Deal for Communities (DSO3), offsetting amounts transferred to Fire Control from these programmes in 2007-08;

—  £5,101,000 from Fire Services comprising £4,000,000 to European Regional Development Fund (not assigned to a DSO) to cover financial corrections of old ERDF programmes, £1,000,000 to Best Value Inspection (DSO1) to fund Audit Commission work on fire and rescue authorities and £101,000 to DSO3 for the new Strategic Research Budget.

Not assigned to a DSO

Draw down of End Year Flexibility

—  £8,644,000 increase for Central Administration costs to cover early exits, increased costs of administering ERDF in internal audit and the Government Offices and restructuring costs.

Transfers to/from Departmental Unallocated Provision

  There is a net increase of £3,695,000 comprising an increase of:

—  £9,000,000 to non voted Departmental Unallocated Provision (not assigned to a DSO) to reduce voted Implementing EU Energy Performance of Building Directives DEL cover (DSO2);

  offset against decreases of:

—  £3,555,000 from DUP for non voted Thames Gateway (£3,370,000 for Thurrock UDC and £185,000 for London UDC) to cover non cash costs that will be incurred this financial year (DSO2); and

—  £1,750,000 from DUP for non voted Housing Corporation (DSO2) to cover the costs of taking on second charges on properties under HomeBuy Direct and to fund capitalisation on existing assets.

Transfers to/from Other Government Departments

  There is a net increase of £1,264,000 comprising increases of:

—  £725,000 from the Cabinet Office for work by the Government Offices for the Office of the Third Sector; and

—  £620,000 from the Cabinet Office for the costs of work by Parliamentary Counsel;

  offset against decreases of:

—  £45,000 to HM Treasury/Office of Government Commerce for sustainable procurement; and

—  £36,000 to the Department for Transport for traffic signage in respect of the Road and Vehicle Safety Standards programme.

Transfers between DSOs

  There is a net increase of £19,721,000 comprising increases of:

—  £18,252,000 to Area Based Grants comprising £12,650,000 from New Burdens on Local Authorities (DSO5), in respect of implementing planning policy on climate change and compliance with the Habitats Directive, and £5,602,000 from the Working Neighbourhood Fund (DSO3) to correct an error in the Main Estimate; and

—  £14,500,000 from DSO2 (£7,500,000), DSO3 (£3,000,000) and DSO6 (£4,000,000) to European Regional Development Fund to cover financial corrections on old programmes;

  offset against decreases of:

—  £12,551,000 to English Partnerships (DSO2) from central administration to cover the increased cost of capital charges resulting from a revaluation of assets associated with the establishment of the Homes and Communities Agency; and

—  £480,000 to Fire Services (DSO6) from central administration for the Crown Premises Inspection Group. This expenditure is to be categorised as programme expenditure in the future.

SECTION D: DEPARTMENTAL EXPENDITURE LIMITS (DEL) AND ANNUALLY MANAGED EXPENDITURE (AME)

  18.  Departmental Expenditure Limits—which are set in Spending Reviews—represent a share of total public expenditure which Departments are expected to manage. They cover a wider boundary than the RFRs, as they include NDPB expenditure and supported capital expenditure of local authorities. Increases can only be sought in RFRs if extra DEL is available—transferred from elsewhere (non voted or another Department) or drawn down as EYF—or if a particular budget is outside the DEL.

  19.  Annually Managed Expenditure covers a few specific programme areas where spend is more difficult to control and forecast. For AME programmes, increases may be made in year and between Spending Reviews, with Treasury agreement. AME is within overall public expenditure.

  20.  The following is a summary of DEL and AME changes consistent with the RFR changes sought. The Department has two DELs—Main and Local Government—which broadly mirror the programme areas of RFR1 and RFR2 respectively.

Main DEL

  21.  The changes to the key budgetary figures for Main DEL are:

Table 3

MAIN DEPARTMENTAL EXPENDITURE LIMIT

		£M
Resource DEL increases by	48.839
Of which
Near cash	48.839
Administration	9.428
The increase in Resource DEL is the effect of:
—  Voted increases comprising a drawdown of £8.644 million EYF for central administration, £30.627 million additional funding for the flood Restoration Fund and a net transfer of £0.764 million from Other Government Departments, partly offset by a net transfer of £0.996 million to the Local Government DEL. Details of these voted changes are given in section B above.
—  A non voted increase of £9.800 million arising from a draw down of additional funding from HM Treasury for the Homes and Communities Agency. This comprises £4.600 million for value added tax and £5.200 million for interest earned on cash balances relating to the Commission for New Towns, and is designed to ensure budget neutrality over the Comprehensive Spending Review years in the transition to the new Agency (see Annex A).
Capital DEL increases by	200.000
The increase is as a result of the package of housing measures announced on 2 September 2008. More information is in Annex B.

Table 4

CHANGES TO THE DEPARTMENTAL EXPENDITURE LIMIT IN 2008-09

			£M
	Voted	Non voted	Total DEL
Resource
1 April	4,046	280	4,327
Change announced with winter supplementary estimate	¸20	69	49
Total resource Departmental Expenditure Limit	4,026	349	4,376
Capital
1 April	2,837	4,138	6,975
Change announced with winter supplementary estimate	¸356	556	200
Total capital Departmental Expenditure Limit	2,481	4,694	7,175
Less depreciation at the start of the year	¸38	¸13	¸51
Less change in depreciation at winter supplementary estimate	1	¸1	0
Total depreciation	¸37	¸14	¸51
Total Departmental Expenditure Limit	6,471	5,029	11,499

  A reconciliation from CSR07 to the 1 April DEL position is set out in table 5 of the Explanatory Memorandum to the Main Estimate 2008-09.

  Amounts may not sum exactly due to rounding.

  22.  The expenditure against Main DEL for this Department and its predecessors for the financial years since 2005-06 is set out in the table below:

Table 5

PREVIOUS YEARS' EXPENDITURE AGAINST DEPARTMENTAL EXPENDITURE LIMITS

						£M
Year	Voted	Non voted	Total DEL	Outturn	Variance	%
Resource
2005-06	4,139.9	1,815.9	5,955.8	5,856.2	¸99.6	¸1.7%
2006-07	3,544.7	120.9	3,665.6	3,503.6	¸162.0	¸4.4%
2007-08	4,118.2	218.4	4,336.6	4,323.7	¸12.9	¸0.3%
Capital
2005-06	1,312.8	2,242.2	3,555.0	3,450.4	¸104.6	¸2.9%
2006-07	2,208.0	3,587.9	5,795.9	5,634.7	¸161.2	¸2.8%
2007-08	2,444.5	3,624.3	6,068.8	6,070.7	1.9	0.0%
Total
2005-06	5,452.7	4,058.1	9,510.8	9,306.6	¸204.2	¸2.1%
2006-07	5,752.7	3,708.8	9,461.5	9,138.3	¸323.2	¸3.4%
2007-08	6,562.7	3,842.7	10,405.4	10,394.4	¸11.0	¸0.1%

Annually Managed Expenditure (Main Programmes)

  23.  The increase of £22.6 million in Main Programmes AME reflects revised forecasts of fire fighters pension top up grants, the unwinding discount on fire fighters pensions and a reduction in cost of capital (see section B above).

Local Government DEL

  24.  The changes to the key budgetary figures for Local Government DEL are:

Table 6

LOCAL GOVERNMENT DEPARTMENTAL EXPENDITURE LIMIT

		£M
Resource DEL increases by	0.966
Of which
Near cash	0.996
The increase in Resource DEL is funded by a transfer from the Main DEL. Details are set out in section B above.
Capital DEL increases by	81.000
The increase in Capital DEL is the net effect of a draw down of £82.000 million EYF for Local Government PSAs and a transfer of £1.000 million to DWP for Government Connect. Details are given in section B above.

Table 7

CHANGES TO THE DEPARTMENTAL EXPENDITURE LIMIT IN 2008-09

			£M
	Voted	Non voted	Total DEL
Resource
1 April	24,602	103	24,705
Change announced with winter supplementary estimate	1	0	1
Total resource Departmental Expenditure Limit	24,603	103	24,706
Capital
1 April	86	1	87
Change announced with winter supplementary estimate	81	0	81
Total capital Departmental Expenditure Limit	167	1	168
Less depreciation at the start of the year	0	0	0
Less change in depreciation at winter supplementary estimate	0	0	0
Total depreciation	0	0	0
Total Departmental Expenditure Limit	24,770	104	24,876

  A reconciliation from CSR07 to the 1 April DEL position is set out in table 8 of the Explanatory Memorandum to the Main Estimate 2008-09.

  Amounts may not sum exactly due to rounding.

  25.  The expenditure for the Local Government DEL for this Department and its predecessors for the financial years since 2005-06 is set out in the table below:

Table 8

PREVIOUS YEARS' EXPENDITURE AGAINST DEPARTMENTAL EXPENDITURE LIMITS

						£M
Year	Voted	Non-voted	Total DEL	Outturn	Variance	%
Resource
2005-06	46,187	106	46,293	46,244	¸49	¸0.1%
2006-07	22,460	106	22,566	22,551	¸15	¸0.1%
2007-08	22,711	104	22,815	22,755	¸60	¸0.3%
Capital
2005-06379	9	388	316	¸72	¸18.6%
2006-07	260	6	265	223	¸42	¸15.9%
2007-08	126	4	130	34	¸96	¸74%
Total
2005-06	46,566	115	46,681	46,560	¸121	¸0.3%
2006-07	22,720	112	22,831	22,774	¸57	¸0.3%
2007-08	22,838	107	22,945	22,789	156	0.7%

  Note: from 2006-07, there was a large change in funding mechanisms for education, reducing grant paid by this Department and increasing that paid by the Department for Children, Schools and Families.

Annually Managed Expenditure (Local Government Programmes)

  26.  The increases in Local Government AME forecasts relate to National Non Domestic Rate outturn adjustments (£137.0 million), and the Local Authority Business Growth Incentive Scheme (£101.7 million). Further information is given in section B above.

SECTION E: END YEAR FLEXIBILITY (EYF)

Main DEL (RFR1 and non voted)

  27.  The Department's EYF has been accumulated by underspends in previous years. The department uses its EYF to fund ongoing programmes where slippage has occurred and for the management of unbudgeted pressures which arise.

Table 9

							£M
	Resource						Capital
TOTAL
	Administration	Other Resource	Total Resource	of which:
				Near cash	Non cash
EYF entitlement set out in Public Expenditure: Provisional Outturn, July 2007 (table 6—Cm 7156)	60	85	145	90	55	604	749
Amount drawn down in 2007-08	¸12	¸56	¸68	¸65	¸3	¸241	¸309
Balance of accumulated EYF at 31 March 2008	48	29	77	25	52	363	440
EYF entitlement from unused resources in 2007-08	+26	+112	+138	+106	+32	0	+138
Adjustments to 2006-07 outturn	¸5	¸1	¸6	+13	¸19	+14	+8
Adjustment to remove underspend on Reserve claim for Housing Market Renewal in 2007-08	0	¸25	¸25	0	¸25	0	¸25
Adjustment for Community Infrastructure Fund	0	0	0	0	0	+20*	+20
Entitlement set out in Public Expenditure: Provisional Outturn, July 2008 (table 6—Cm 7419)	69	115	184	144	40	397	581
EYF drawn down in winter supplementary estimates (see section B)	¸9	0	¸9	¸9	0	0	¸9
Balance of accumulated end year flexibility	60	115	175	135	40	397	572
* Capital EYF was increased by £19.7 million by HM Treasury to reflect the transfer of programme responsibility for the Community Infrastructure Fund from the Department for Transport to CLG between SR04 and CSR07.

Table 10

ALLOCATION OF ACCUMULATED END YEAR FLEXIBILITY

			£M
	Resource	Capital	Total
Central department (Programme & Administration)	175	397	572
of which Ring-fenced*	3	9	12
*Ring-fencing for Regional Development Agencies

Local Government DEL (RFR2 and non voted)

  28.  The Department's EYF has been accumulated by underspends. The Department uses its EYF to fund ongoing programmes where slippage has occurred and for the management of unbudgeted pressures which arise.

Table 11

							£M
	Resource						Capital
TOTAL
	Administration	Other Resource	Total Resource	of which:
				Near cash	Non cash
EYF entitlement set out in Public Expenditure: Provisional Outturn, July 2007 (table 6—Cm 7156)	0	57	57	57	0	322	379
Amount drawn down in 2007-08	0	0	0	0	0	0	0
Balance of accumulated EYF at 31 March 2008	0	57	57	57	0	322	379
EYF entitlement from unused resources in 2007-08	0	50	50*	50	0	96	146
Entitlement set out in Public Expenditure: Provisional Outturn, July 2008 (table 6—Cm 7419)	0	107	107	107	0	418	525
EYF drawn down in winter supplementary estimates (see section B)	0	0	0	0	0	¸82	¸82
Balance of accumulated end year flexibility	0	107	107	107	0	336	443
* Resource EYF entitlement from 2007-08 understated by £10 million due to error in published version of PEOWP.

Table 12

ALLOCATION OF ACCUMULATED END YEAR FLEXIBILITY

			£M
	Resource	Capital	Total
RfR2 (Local Government Programmes)	107	336	443
of which Ring-fenced*	81	301	382
* The majority of this ring-fencing (£76 million resource; £301 million capital) is for PSA Reward Grant.

SECTION F: ADMINISTRATION BUDGET

Table 13

CHANGES TO THE ADMINISTRATION BUDGET IN 2008-09

	£M
	Limit
1 April	280.3
Change announcement with winter supplementary estimate	9.4
Administration Budget	289.7

  29.  The changes to the overall Administration Budget in the Winter Supplementary Estimate are the draw down of End Year Flexibility (£8.644 million), net transfers from other Government Departments (£1.264 million) and reclassification of funding for the Crown Premises Inspection Group (£0.480 million), which are explained in section B above.

  30.  The Administration Budget and outturn for the financial years since 2005-06 are set out in the table below:

Administration Budget (previous years)

Table 14

				£M
Year	Budget	Outturn	Variance	%
2005-06	336	311	¸25	¸7.5%
2006-07	324	298	¸26	¸8.1%
2007-08	304	278	¸26	¸8.6%

SECTION G: PROVISIONS AND CONTINGENT LIABILITIES

Provisions

  31.  The department provides for legal or constructive obligations, which are of uncertain timing, or amount, at the balance sheet date on the basis of the best estimate of the expenditure required in settling the obligation. The following table sets out the provisions made at the start of 2008-09 and the use that has been made of them. Below the table is an explanation of the provisions which have been made.

Table 16

			£M
Position from 1 April 2008	Early Departure	Other	Total
Opening Balance at 1 April 2008	¸20.857	¸85.004	¸105.861
Provided in year	¸0.023	¸1.500	¸1.523
Provisions not required written back	0	0	0
Provisions used in year	2.738	0.963	3.701
Pre-funding	0.027	0	0.027
Unwinding of discount	¸0.173	0	¸0.173
Closing Balance at 30 September 2008	¸18.288	¸85.541	¸103.829
Early Departure Costs

  The department meets the additional costs of benefits beyond the normal Principal Civil Service Pension Scheme (PCSPS) benefits in respect of employees who retire early, by paying the required amounts annually to the PCSPS over the period between early departure and normal retirement date. The department and its agency provide for this in full when the early retirement programme becomes binding by establishing a provision for the estimated payments discounted by the Treasury discount rate of 2.2% in real terms. In past years the department paid in advance some of its liability for early retirement by making a payment to the Paymaster General's Account at the Bank of England for the credit of the Civil Service Superannuation Vote. The balance remaining is treated as a prepayment.

Other Costs

European Regional Development Fund Correction (£72.9 million)

  The European Commission have concerns relating to some specific projects within the 1997-99 and 2000-06 tranches of programmes and they have extrapolated across the whole programme to reach a total potential disallowance ineligible for grant payments. Following consideration of potential ineligible grant payments the Department has raised provisions totalling £72.9 million. It is expected that half of these cases may be settled in this financial year. None of this provision has been drawn down so far in 2008-09.

Compensation Payments (£4.2 million)

  These relate to claims made by staff and third parties against the department. The majority represent claims by ex Property Services Agency employees who have contracted lung disease due to industrial exposure. It is expected that a third of these cases may be settled during this financial year with the remainder settled in the following two years. £0.9 million of provision has been drawn down so far in 2008-09.

Dilapidations (£6.2 million)

  The provision relates to complying with lease clauses for buildings which are occupied by the Government Offices. None of this provision has been drawn down so far in 2008-09.

Firefighters' Pensions (£2.2 million)

  The Firefighters' Pension Scheme is a small scheme that has similar conditions to the Principal Civil Service Pension Scheme that was inherited from the Home Department for 17 former firefighters and their widows. The Treasury real rate for this pension scheme is 2.8%. £0.1 million of this provision has been drawn down so far in 2008-09.

Contingent liabilities

Table 17

	£M
Statutory
Fire Service Act 1947 s17 and the Fire Service (Discipline Regulations) 1985. Liability to litigation by Fire Authorities resulting from delays in processing appeals to the Secretary of State.	0.2
Payments under the Housing Defects Act 1984 (now part XVI of the Housing Act 1985) to Local Authorities.	0.8-1.0
Housing Association Act 1987, s84. Indemnity of building society mortgages for shared ownership schemes.	0.2
Indemnity given for the Land Stabilisation Project to proceed in Northwich under Section 1 of the Derelict Land Act 1982	25.0
Non-Statutory
Possible administrative irregularities (Article 4 and 10 checks) in respect of the European Regional Development Fund programme, where approximately 50% of the total irregularities value would not be recovered due to insolvency occurring.	5.0
Three Local Authorities (Corby, Slough and Cannock Chase) have launched legal action against the Department for underpayment of the Local Authority Business Growth Incentive Scheme grant. There is a chance that the court will rule in favour of the Local Authorities. This would result in an additional payment to Local Authorities.	200.9
Possible obligations from Employment Tribunal decision including asbestos claims against the Department.	Unquantifiable
Potential payments under the Housing Revenue Account Subsidy (HRAS) scheme relating to outstanding claims.	Unquantifiable
Liability to pay grant in future years relating to annual gap-funding agreements for negative values transfers of council housing stocks	373.1
Ex-gratia payments which may possibly be made to appellants or other appeal parties who have incurred abortive costs following an error made by the Planning Inspectorate.	0.1
Possible ex-gratia payments in relation to Housing and Planning	Unquantifiable
Possible obligations from Employment Tribunal decisions.	Unquantifiable
Other Employment Tribunal decisions.	0.2
Charging of VAT on building rental	0.2
Indemnity given to the Nationwide Building Society as lender for claims relating to the treatment or removal of asbestos in connection with housing stock transfers	Unquantifiable
Indemnity given to the Fire and Rescue Services in respect of possible incidents as a result of mass decontamination.	Unquantifiable
Where bodies outside boundary (see Note 33 of resource accounts) are unable to meet their own liabilities, then there is no reason to believe that the department's future sponsorship and future Parliamentary approval will not be forthcoming.	Unquantifiable

SECTION H: APPROVAL OF MEMORANDUM

  32.  This Memorandum has been prepared with reference to guidance in the Estimates Manual provided by Treasury and that found on the House of Commons Scrutiny Unit website. The information in this Memorandum has been approved by the Departmental Accounting Officer.

Annex A

THE MOVEMENT OF BUDGETS IN CONNECTION WITH THE HOMES AND COMMUNITIES AGENCY (HCA)

  1.  Following a housing and regeneration review in 2006 the Government decided to create a new agency which would be better empowered to meet the housing and regeneration needs of England and a new regulator for social housing to take over the regulatory role of the Housing Corporation.

  2.  These new bodies are called the Homes and Communities Agency and the Tenant Services Authority and provisions establishing these bodies took effect from 8 September 2008.

  3.  The Homes and Communities Agency has been established so as to combine the delivery of both housing and regeneration. The policy objective is that the Homes and Communities Agency will bring together, in one place, the regeneration functions of Urban Regeneration Agency and the Commission for the New Towns, housing investment functions from the Housing Corporation, and some related work carried out by the Department for Communities and Local Government.

  4.  Given that the vesting date for the new agency is 1 December 2008, a series of budget changes have been necessary through the Winter Supplementary Estimate in order to ensure that it has the resources it requires to meet its objectives in this and in future years.

  5.  The budget for the new Homes and Communities Agency will be £2,089,523,000 comprising a transfer of £299,770,000 from within various voted DEL programmes; £1,779,953,000 from existing non voted programmes and £9,800,000 from HM Treasury reflecting adjustments to the Department's near cash DEL to ensure budget neutrality over the Comprehensive Spending Review years in the transition to the new Agency. As a result of this, grant in aid has increased by £2,047,160,000 to support this non voted budget allocation.

  6.  The table below sets out the movements of various budget changes for the new Homes and Communities Agency.

Table 18

ESTIMATE AND BUDGET CHANGES DUE TO ESTABLISHMENT OF HCA

					£M
		DEL	Types of Expenditure
			Near Cash	Non Cash	Capital
DEL reductions
from RFR1
	Central government expenditure
Section B	Thames Gateway (direct funding)	¸62.7			¸62.7
	Gap funding for large scale voluntary transfers	¸20.0			20.0
	Community Infrastructure Fund	¸17.0			¸17.0
	Housing Corporation Board—Remuneration & pensions	¸0.1	¸0.1
	Homes and Communities Agency (set up costs)	¸8.8	¸8.8
	Growth Areas, New Growth Points & Eco-towns	¸0.2	¸0.2
Section C	Academy for Sustaintable Communities	¸4.2	¸4.2
Section E	Implementing planning reforms	¸1.3	¸1.3
Section G	Central Administration	¸12.6		¸12.6
	Support for local authorities
Section N	Housing Market Renewal Fund	¸161.6	¸10.6		¸151.0
	Homelessness & Housing Reform	¸11.0			¸11.0
	Growth Areas, New Growth Points & Eco-Towns	¸8.2	¸3.2		¸5.0
Total voted DEL reductions		¸307.5	¸28.3	¸12.6	¸266.7
from existing non vote programmes
	Housing Corporation	¸1,661.2	¸17.2	¸0.7	¸1,643.4
	English Partnerships Urban Regeneration Agency	¸95.6	¸16.2	¸19.5	¸59.9
	English Partnerships Commission for New Towns	¸13.5	¸2.5	¸7.8	¸3.2
	New Burdens on Local Authorities	¸2.0	¸2.0
Total non voted DEL reductions		¸1,772.3	¸37.9	¸27.9	¸1,706.5
Grand Total DEL reduction		¸2,079.8	¸66.2	¸40.5	¸1,973.2
DEL increases (non voted)
New HCA budget (non voted)
	Homes and Communities Agency	1,794.9	47.9	40.5	1,706.5
	Housing Market Renewal	161.6	10.6		151.0
	Thames Gateway (direct funding)	62.7			62.7
	Gap funding for large scale voluntary transfers	20.0			20.0
	Community Infrastructure Fund	17.0			17.0
	Homeslessness & Housing Reform	11.0			11.0
	Growth Areas, New Growth Points & Eco-Towns	8.4	3.4		5.0
	Academy for Sustaintable Communities	4.2	4.2
Total non voted DEL increases (HCA budget)		2,079.8	66.1	40.5	1,973.2
Net change to DEL		ZERO
Net change to Vote		¸307.5	of which:	¸299.8	to HCA (incl 1.1m set up costs)
				¸4.0	to EP (HCA set up costs)*
				¸3.7	to HC (HCA set up costs)*
Voted Non budget changes
reductions
RFR1
Section X	Housing Corporation	¸1,449.4
	English Partnerships	¸98.0
Total Voted Non Budget reductions		¸1,547.4
increases
Section X	Homes and Communities Agency	2,046.2
	Repayment of Contingencies Fund advance	0.9
Total Voted Non Budget increases (HCA gia)		2,047.2
Net change to DEL		ZERO
Net change to Vote		499.8	of which:	200.0	Sept 2008 Housing Package
				299.8	Transfers from RfR1
Result
Voted grant in aid to HCA (incl repayment of contingencies fund advance)		2,047.2
Non Voted DEL HCA Budget		2,089.6	(incl £9.8m non voted drawdown from HMT—see below)
Before Winter Supplementary Estimate		DEL	Vote	vote section	proportion of year budget covers
	Central government spending
	Thames Gateway (direct funding)	177.0	177.0	B	12 months
	Gap funding for large scale voluntary transfers	80.0	80.0	B	12 months
	Community Infrastructure Fund	50.0	50.0	B	12 months
	Growth Areas, New Growth Points & Eco-Towns	47.4	47.4	B	12 months
	Homes and Communities Agency (set up costs)	13.0	13.0	B	12 months
	HC—Board Remuneration	0.2	0.2	B	12 months
	Academy for Sustainable Communities	5.5	5.5	C	12 months
	Implementing planning reforms	26.3	26.3	E	12 months
	Central Administration (non cash)	12.0	12.0	G	12 months
	Support for local authorities
	Housing Market Renerwal Fund	381.0	381.0	N	12 months
	Growth Areas, New Growth Points & Eco-Towns	210.6	210.6	N	12 months
	Homelessness and Housing Reform	78.9	78.9	N	12 months
	Non voted programmes
	Housing Corporation	2,616.8	0.0	non voted	12 months
	English Partnerships—URA	276.3	0.0	non voted	12 months
	English Partnerships—CNT	11.4	0.0	non voted	12 months
	New Burdens on Local Authorities	23.4	0.0	non voted	12 months
	Total before WSE	4,009.7	1,081.9
After Winter Supplementary Estimate (figures only take account of HCA changes to budgets)
proportion of year budget covers
	Central government spending
	Thames Gateway (direct funding)	114.3	114.3	B	8 months
	Gap funding for large scale voluntary transfers	60.0	60.0	B	8 months
	Community Infrastructure Fund	33.0	33.0	B	8 months
	Growth Areas, New Growth Points & Eco-Towns	47.2	47.2	B	8 months
	Homes and Communities Agency (set up costs)**	4.2	4.2	B	12 months
	HC—Board Remuneration	0.1	0.1	B	8 months
	Academy for Sustainable Communities	1.3	1.3	C	8 months
	Implementing planning reforms	265.0	25.0	E	12 months
	Central Administration (non cash)	¸0.6	¸0.6	G	12 months
	Support for local authorities
	Housing Market Renerwal Fund	219.4	219.4	N	8 months
		DEL	Vote	vote section	proportion of year budget covers
	Growth Areas, New Growth Points & Eco-Towns	202.4	202.4	N	8 months
	Homelessness and Housing Reform	67.9	67.9	N	8 months
	Non voted programmes
	Housing Corporation	955.6	0.0	non voted	8 months
	English Partnerships—URA	180.7	0.0	non voted	8 months
	English Partnerships—CNT	¸2.1	0.0	non voted	8 months
	New Burdens on Local Authorities	21.4	0.0	non voted	12 months
	Homes and Communities Agency	1,804.8	0.0	non voted	4 months
	HCA (former HMRF)	161.6	0.0	non voted	4 months
	HCA (former Thames Gateway programmes)	62.7	0.0	non voted	4 months
	HCA (former Gap funding programmes)	20.0	0.0	non voted	4 months
	HCA (former Community Infrastructure Fund)	17.0	0.0	non voted	4 months
	HCA (former Homelessness and Housing Reform programmes)	11.0	0.0	non voted	4 months
	HCA (former Growth Areas, New Growth Points & Eco-Towns programmes)	8.4	0.0	non voted	4 months
	HCA (former Academy for Sustainable Communities programmes)	4.2	0.0	non voted	4 months
	Total after WSE	4,019.6	774.3
	Difference	9.8	¸307.6
	Reason for DEL increase
	£9.8 million is a draw down from HM Treasury to HCA to ensure budget neutrality over the Comprehensive Spending Review years in the transition to the new Agency. I relates to value added tax (£4.6 million) and interest earned on CNT cash balances (£5.2 million)
* Note: £4.0 million and £3.7 million have been transferred to English Partnerships and the Housing Corporation, respectively, from RfR1, section B, to reimburse costs incurred by them in relation to the set up of the Homes and Communities Agency (see section B of the Memorandum).
** Transfers relating to historic Housing Corporation pensions deficit, which crystallise on the winding up of the Corporation, have not been taken into account (see section B of the Memorandum for details)
Figures may not sum due to rounding

Annex B

HOUSING PACKAGE

  1.  Ministers announced a £1 billion package of housing measures on 2 September 2008. Treasury have agreed that this can be funded within CLG's CSR07 settlement, largely by bringing forward CLG expenditure from 2010-11 to 2008-09 and 2009-10.

  2.  The measures to support the housing market in England include:

—  offering 10,000 first time buyers currently frozen out of the mortgage market the chance to get onto the property ladder through a new £300 million shared equity scheme;

—  supporting up to 6,000 of the most vulnerable homeowners facing repossession to remain in their home through a £200 million mortgage rescue scheme;

—  £100 million for reform of Income Support for Mortgage Interest which could help prevent a further 10,000 repossessions;

—  a £400 million boost in spending power for social housing providers, including registered social landlords and councils, to deliver 5,500 more social houses over the next 18 months by bringing funding forward; and

—  working with Regional Development Agencies to support the most critical regeneration schemes with the most potential to transform their communities.

Table 19

SEPTEMBER HOUSING PACKAGE PROFILES

				£M
Housing Package—Spending	2008-09	2009-10	2010-11	Total
SMI	0	40	55	95
Total Resource	0	40	55	95
Mortgage Rescue	50	100	55	205
Homebuy direct	50	250	0	300
Social Rented Housing	100	300	0	400
Total Capital	200	650	55	905
Housing Package—Funding	2008-09	2009-10	2010-11	Total
Total Resource	0	0	0	0
RDAs	0	¸25	¸275	¸300
Other capital	0	0	¸300	¸300
Social Rented Housing	0	0	¸400	¸400
Total Capital	0	¸25	¸975	¸1,000
Housing Package—Budgets	2008-09	2009-10	2010-11	Total
CLG re-profiled CDEL	200	625	¸920	¸95
CLG re-profiled RDEL	0	0	0	0
Total reprofiling	200	665	¸865

Annex C

EXPLANATION OF KEY TERMS AND GLOSSARY

DEL—DEPARTMENTAL EXPENDITURE LIMIT

  This is spending within the department's direct control, which can be planned over a Spending Review period and includes programme and administration expenditure. The Department for Communities and Local Government has two DELs—Main DEL, which covers main programme spending, and Local Government DEL, which covers local government programmes.

RFR—REQUEST FOR RESOURCES

  These are the resource element of the Departmental Estimates. The department has two RfRs:

RfR 1:  Improving the quality of life by creating thriving, inclusive and sustainable communities in all regions.

RfR 2:  Providing for effective devolved decision making within a national framework.

  The RFR covers the central Department and the Government Offices, and unlike the DEL does not consolidate NDPB spend, showing instead payments of grant in aid to the NDPBs.

DUP—DEPARTMENTAL UNALLOCATED PROVISION

  The department's (non voted) contingency reserve, which can be accessed to meet pressures or to deal with in year management of resources by means of Main and Supplementary Estimates.

EYF—END YEAR FLEXIBILITY

  This enables the department to plan the use of resources over a Spending Review period as it allows the carry forward of unspent DEL resources into future years. The department allows the carry forward of EYF for specific ring-fenced programmes. The remainder is used as a central resource to meet pressures arising in year.

VOTED AND NON-VOTED EXPENDITURE

  Voted expenditure is that expenditure which has been approved in Main or Supplementary Estimates. Non-voted expenditure has not been through this Parliamentary process. Examples of non-voted are the resource and capital expenditure by NDPBs. NDPBs' grant-in-aid is voted.

SPENDING REVIEW

  A fundamental look at resources by the Treasury which (usually) takes place every two years and normally covers a three year period. The current budgets are a result of CSR07, which covered the years 2008-09, 2009-10 and 2010-11.

OTHER ABBREVIATIONS

CNT—Commission for New Towns

CSR07—Comprehensive spending review 2007

DCSF—Department for Children, Schools and Families

DWP—Department for Work and Pensions

EP—English Partnerships

ERDF—European Regional Development Fund

HC—Housing Corporation

HCA—Homes and Communities Agency

HMRF—Housing Market Renewal Fund

HRAS—Housing Revenue Account Subsidy

NDPB—Non Departmental Public Body

NNDR—National Non-Domestic Rates

OGA—Other Growth Areas

OGD—Other Government Department

PFI—Private Finance Initiative

PSA—Public Service Agreement

RSG—Revenue Support Grant

SR04—Spending review 2004

URA—Urban Regeneration Agency

VAT—Value Added Tax

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Prepared 4 March 2009