Memorandum 9
Supplementary submission from the Department
for Innovation, Universities and Skills
NEW SUPPLY
ESTIMATE 2007-08
DEPARTMENT FOR INNOVATION, UNIVERSITIES AND
SKILLS—ESTIMATE MEMORANDUM
SUMMARY OF
NEW ESTIMATE
The Department for Innovation, Universities
and Skills (DIUS) was created by the Prime Minister in June 2007
to drive forward delivery of the Government's long-term vision
to make Britain one of the best places in the world for science,
research and innovation, and to deliver the ambition of a world-class
skills base.
PSAS
DIUS have the following PSA targets which have
transferred from DTI and DFES.
DTI's PSA 2 "Improve the relative international
performance of the UK research base and increase the overall innovation
performance of the UK economy, making continue progress to 2008,
including through effective knowledge transfer amongst universities,
research institutions and business".
DFES's PSA 13 "Increase the number of adults
with skills required for employability and progression to higher
levels of training through:
— improving the basic skill levels
of 2.25million adults between the launch of Skills for Life in
2001 and 2010, with a milestone of 1.5million in 2007; and
— reducing by at least 40% the number
of adults in the workforce who lack NVQ 2 or equivalent qualification
by 2010. Working towards this, one million adults in the workforce
to achieve level 2 between 2003 and 2006".
DFES's PSA 14 "By 2010, increase participation
in higher education towards 50% of those aged 18 to 30 and also
make significant progress year on year toward fair access, and
bear down on rates of non- completion".
The funds included in this Estimate are being
applied to meet these PSA targets.
DETAIL OF
THE NEW
ESTIMATE SUPPLY
SOUGHT
For the purposes of Estimates, we are publishing
a Supplementary which (in addition to the usual Supplementary
entries such as End Year Flexibility) takes as its starting point
the budgets published in the Department of Trade and Industry
(DTI) Main Estimate in relation to Science and Innovation and
the budgets published in the Department for Education and Skills
(DFES) Main Estimate in relation to Higher Education and Skills.
| Request for Resource (RfR)
| New Estimate £000 |
| RfR 1—Higher Education, Skills & Innovation
| £13,694,011 |
| RfR 2—Science | £3,367,253
|
| Total net resource requirement | £17,061,264
|
| Net cash requirement | £18,892,556
|
The main element of the New Estimate is based on machinery
of government transfers as set out below:
— From DCSF £14,117,019,000 consisting of -£4,753,801,000
Voted provision (-£4,297,101,000 resource and -£456,700,000
capital) and £18,870,820,000 non Voted provision (£17,247,858
resource and £1,622,962 capital).
— From BERR £3,837,175,000 consisting of £354,134,000
voted provision (£334,202,000 resource and £19,932,000
capital) for RfR 1; £501,104,000 voted provision (£202,104,000
resource and £299,000,000 capital) for RfR 2; and £2,981,937,000
non voted provision ( £2,586,368,000 resource and £395,569,000
capital).
In addition the following changes have been made:
— drawdown of EYF on RfR 2 (Science) set out in
the EYF section below; and
— a transfer of £26.8m from the DEFRA Business
Resource Efficiency & Waste programme (BREW) for the Technology
Strategy Board (TSB) in RfR 1.
— A transfer of £6,270m from the Ministry of
Justice for prisoner education costs.
— A transfer of £0.230 million to the Ministry
of Justice for PICTA.
As a result of the MOG there is a transfer of resources within
RfR 2 from voted to non voted. Prior to the MOG the DTI vote funded
DfES for the Higher Education elements of the SRIF and HEIF (Science)
programmes. Now that Science and Higher Education are in the same
Department the vote funding of these programmes becomes non budget
and the related expenditure is non voted within RfR 2.
APPROPRIATIONS IN
AID
Appropriations in Aid total £7.7 billion of which 93%
(£7.2 billion) is funding by the Department of Children,
Families and Schools (DCSF) for the 14-19 work carried out by
the Learning and Skills Council (LSC). The majority of the remainder
is £515 million representing the repayment of interest on
student loans.
ADMINISTRATION COST
LIMITS
The administrative costs limit is £71,840,000 consisting
of £14,690,000 (RfR1) and £8,500,000 (RfR2) from BERR
and £43,450,000 from DCSF under the machinery of government
change. In addition Treasury has agreed a switch of £5,200,000
from programme to administration in relation to consultancy costs.
DEPARTMENTAL EXPENDITURE
LIMITS (DEL)
The DEL requirements of the New Estimate are set out below.
The negative voted DEL is the result of the £7.212 billion
receipts from DCSF to support the 14-19 programmes controlled
by the Learning and Skills Council exceeding DIUS voted Resource
DEL expenditure.
£m | Voted
| Non-Voted | Total Resource
|
| DEL | -3,742,948 | 19,860,165
| 16,117,217 |
| Of which: | |
| |
| Administration Budget | 71,840
| 0 | 71,840 |
| Near Cash in RDEL | -5,175,121
| 19,713,429 | 14,538,308 |
| Capital DEL | -93,408 | 2,064,140
| 1,970,732 |
END YEAR
FLEXIBILITY (EYF)
Within DIUS both programme and administrative budgets are
delegated to Board members and the expectation is that they will
normally manage within their allocations. Where this is not possible
and subject to the approval of Ministers the use of EYF will be
considered.
Following the MOG DIUS had the following 2007-08 EYF stocks.
| £m nominal | 2007-08 EYF Stocks
|
| Near Cash | Non Cash
| Capital |
| DIUS Programme | 667
| 501.3 | 282.7 |
| DIUS Admin | 4.09 | 0
| 0 |
In addition to access to drawdown of Science capital EYF in 2007-08,
it was agreed that £78 million from the ex-DTI's non-science
budget (now BERR) would be made available as a loan to the Science
ring fence. This will be paid back to the BERR over the CSR period
as required, with, in 2008/09, a maximum repayment of £50
million.
PROVISIONS AND
LIABILITIES
The Department has inherited three major provisions from
the DCSF all relating to Student Loans. At 1 April 2007 the balance
of the three provisions was £3.482 billion.
The student loan provisions relate to:
— the possible write-off of loans issued which in
the event will be unrecoverable for various reasons;
— the interest subsidy as the student is only charged
interest at the rate of inflation; and
— the debt sale subsidy which covers the contractually
due subsidies to the purchaser of the debt.
Fuller details of these subsidies are given in the Department
for Education and Skills Resource Accounts 2006-07 issued as HC
772 on 16 July 2007. Note 20 to the accounts refers.
The Department has inherited three quantifiable contingent
liabilities from DCSF. They all relate to the Secretary of State
acting as guarantor to take over the responsibility for the leases
of properties used by local Learning and Skills Councils offices
because at the time of establishment the LSC was an unknown body
to the landlord. Outstanding liabilities at 1 April 2007 were:
| Croydon LLSC | £4,037,000
|
| Brighton, Manchester and Coventry LLSCs |
£30,688,000 |
| Kempston LLSC | £386,000
|
In addition the Department has inherited 3 unquantifiable
contingent liabilities from BERR:
(i) Liabilities relating to the issue of licences to operators
of satellites and other space objects;
(ii) European Patent Office: the UK as one of the contracting
states has a potential liability under Article 40 of the European
Patent Convention of 1973; and
(iii) World Intellectual Property Organisation: the UK, as
a contracting state to the Patent Co-operation Treaty of 1970,
has a potential liability under Article 57 of the Treaty.
November 2007
|
