Written Ministerial Statements
Monday 14 February 2011
Business, Innovation and Skills
Departmental Expenditure Limit (2010-11)
The Secretary of State for Business, Innovation and Skills (Vince Cable): Subject to parliamentary approval of the necessary supplementary estimate, the Department for Business, Innovation and Skills' DEL will be increased by £2,876,008,000 from £20,801,811,000 to £23,677,819,000 and the administration budget will be increased by £2,826,000 from £323,487,000 to £326,313,000.
Within the DEL change, the impact on Resources and Capital is as set out in the following table:
The change in the resource element of the DEL arises from:
i) A reserve claim of £5,121,000 for Ofcom to enable repayment of levies to Channel 3 and Channel 5 following a recent license review which resulted in a change in the terms of the license;
ii) A reduction in voted receipts from the Department for Work and Pensions of £1,572,000 and a reduction of non-voted expenditure by the Regional Development Agencies in respect of self-employment programmes;
iii) A virement of £2,580,000 from non-voted expenditure by the Regional Development Agencies to voted expenditure by the Skills Funding Agency (RfR3) in respect of the regional skills strategy;
iv) A reduction of £64,865,000 in voted receipts from the Department for Communities and Local Government and a reduction in non-voted expenditure by the Regional Development Agencies;
v) A virement of £222,000 voted business support programmes to non-voted expenditure by the Regional Development Agencies;
vi) A virement of £195,000 from London Development Agency to the Skills Funding Agency (RfR3) for the regional skills strategy;
vii) A reclassification of £40,000,000 from non-voted resource expenditure on Small Firms Loan Guarantee provisions to voted capital expenditure on Launch Investment;
viii) A reclassification of £40,705,000 from voted capital expenditure by the Strategic Investment Fund to non-voted resource expenditure by the Technology Strategy Board for the Strategic Investment in Low Carbon Engine programme (£40,500,000) and Composites Challenge (£205,000);
ix) A virement of £5,800,000 from voted business programmes to non-voted expenditure by the Technology Strategy Board for Advanced Powerplant and Aerodynamics Research Technology and Rapid Technology Evolution;
x) A reclassification of £5,900,000 from voted Strategic Investment Fund capital expenditure to non-voted resource expenditure by the Technology Strategy Board for Rotorcraft Technology Validation Programme;
xi) A reclassification of £21,393,000 from voted capital expenditure by the Strategic Investment Fund to various voted resource programmes including the Hybrid Training Vehicle Package and the Manufacturing Advisory Service Low Carbon project;
xii) A Machinery of Government transfer from HM Treasury of £176,000 for the Government Property Unit;
xiii) A budget transfer of £899,000 to the Office of Fair Trading to fund an enforcement team to protect consumers from internet fraud;
xiv) A virement of £60,000 from RfR3 for Mutual Recognition of Professional Qualifications;
xv) A virement of £194,000 underspend on Government Skills (RfR3) to expenditure on restructuring;
xvi) A utilisation of £8,321,000 from the non-voted Departmental Unallocated Provision towards voted central services;
i) A reclassification from resource to capital of £9,470,000 in respect of non-voted expenditure by the Engineering and Physical Sciences Research Council;
ii) A virement of £100,000 from voted expenditure on Science and Society to non-voted expenditure by the research councils;
iii) A Reserve Claim of £18,000,000 of non-voted expenditure in respect of non-cash for amortisation of Medical Research Council intellectual property assets;
i) A non cash Reserve Claim of £2,663,000,000 in relation to Student Loan provisions and impairments of the value of the Student Loan book. This reflects the low level of interest rates which has prevailed since 2008
and potential changes in valuation following a current review of the modelling. As a complex and volatile asset, which is sensitive to macro-economic changes outside BIS's control, an element of contingency has been included.
ii) Utilisation of £11,964,000 of end year flexibility for the Aimhigher programme
iii) Utilisation of £100,036,000 of end year flexibility for student grants;
iv) Utilisation of £74,300,000 of end year flexibility for the Skills Funding Agency comprising: £14,300,000 for the Unemployment package (6-month offers); £23,000,000 for Apprenticeships; £30,000,000 for the Adult Skills Participation Level 3 programme and £7,000,000 for Career Development Loans;
v) A reclassification of £99,152,000 from resource to capital in respect of the Skills Funding Agency;
vi) A reclassification of £2,000,000 from non-voted resource to non-voted capital in respect of the Higher Education Funding Council for England;
vii) A reclassification of £1,974,000 from non-voted resource to non-voted capital in respect of the Student Loans Company;
viii) A reclassification of £11,700,000 from voted resource to non-voted capital in respect of the Higher Education Funding Council for England;
ix) A virement of £748,000 from non-voted expenditure by the Student Loans Company to voted expenditure on Student Support;
x) An increase of £13,101,000 in voted receipts for the Student Loans Company, offset by an increase in non-voted expenditure;
xi) A virement of £3,900,000 from non-voted expenditure by the UK Commission for Employment and Skills to voted expenditure by the Skills Funding Agency;
xii) A budget transfer of £75,000 from the Department for Education to the Learning and Skills Improvement Service for costs of BECTA (British Educational and Communications Technology Agency) staff;
xiii) A budget transfer from the Ministry of Justice of £197,000 for careers advice in prisons;
xiv) A budget transfer to the Department for Education of £1,000,000 for Family Learning Impact Funding;
xv) A budget transfer of £11,900,000 from the Skills Funding Agency to the Department for Education for Learners with Learning Difficulties and/or Disabilities;
xvi) A virement of £194,000 from an underspend on Government Skills to expenditure on restructuring;
xvii) A virement of £60,000 to RfR1 for Mutual Recognition of Professional Qualifications;
xviii) A virement of £195,000 from the London Development Agency (RfR1) to the Skills Funding Agency for the regional skills strategy;
xix) A virement of £2,580,000 from non-voted expenditure by the Regional Development Agencies (RfR1) to voted expenditure by the Skills Funding Agency in respect of the regional skills strategy;
Also within the change to resource DEL, the changes to the Administration budget are (RfR1):
i) A Machinery of Government transfer from HM Treasury of £2,826,000 for the Government Property Unit;
The change in the Capital element of the DEL arises from:
i) An increase of £64,865,000 in voted receipts from the Department for Communities and Local Government and an increase in non-voted expenditure by the Regional Development Agencies;
ii) A virement of £7,200,000 voted grants for business investment to non-voted expenditure by the Regional Development Agencies;
iii) An increase of £45,000 in voted receipts from the Department for Transport and an increase in non-voted expenditure by the Regional Development Agencies in respect of regional infrastructure funds;
iv) A reclassification of £40,705,000 from voted capital expenditure by the Strategic Investment Fund to non-voted resource expenditure by the Technology Strategy Board for the Strategic Investment in Low Carbon Engine programme (£40,500,000) and Composite Challenge (£205,000);
v) A reclassification of £21,393,000 from voted capital expenditure by the Strategic Investment Fund to various voted resource programmes including the Hybrid Training Vehicle Package and the Manufacturing Advisory Service Low Carbon programme;
vi) A virement of £5,900,000 from voted Strategic Investment Fund capital expenditure to non-voted resource expenditure by the Technology Strategy Board for the Rotorcraft Technology Validation Programme;
vii) A reclassification of £40,000,000 from non-voted resource expenditure on Small Firms Loan Guarantee provisions to voted capital expenditure on Launch Investment;
viii) A virement of £25,600,000 of Launch Investment receipts from non-voted Consolidated Fund Extra Receipts to voted Appropriations in Aid;
ix) A budget transfer of £1,000,000 from UK Trade and Investment towards accommodation costs;
x) A budget transfer of £31,112,000 from the Northern Ireland executive for Launch Investment;
i) A virement of £140,000 from non-voted expenditure by the research councils to voted expenditure by the British Academy;
ii) A reclassification from resource to capital of £9,470,000 in respect of non-voted expenditure by the Engineering and Physical Sciences Research Council;
i) A reclassification of £99,152,000 from resource to capital in respect of the Skills Funding Agency;
ii) A reclassification of £11,700,000 from voted resource to non-voted capital in respect of the Higher Education Funding Council for England;
iii) A reclassification of £2,000,000 from non-voted resource to non-voted capital in respect of the Higher Education Funding Council for England;
iv) A reclassification of £1,974,000 from non-voted resource to non-voted capital in respect of the Student Loans Company;
v) An increase of £719,000 in voted receipts for the Student Loans Company, offset by an increase in non-voted expenditure.
Treasury
Government Actuary's Department: Departmental Expenditure Limit (2010-11)
The Financial Secretary to the Treasury (Mr Mark Hoban): Subject to parliamentary approval of any necessary supplementary estimate, the Government Actuary's Department total DEL will be increased by £387,000 from £299,000 to £686,000. Within the total DEL change the impact on resources and capital is set out in the following table:
| £000s | ||||||
| Change | New DEL | |||||
| Voted | Non-voted | Voted | Non-voted | Total | ||
| (*)Depreciation which forms part of Resource DEL, is excluded from Total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | ||||||
The change in the resource element of DEL arises from:
An increase in administration expenditure of £2,846,000 from £12,619,000 to £15,465,000
An increase in appropriations in aid provision of £2,719,000 from £12,192,000 to £14,911,000. Due to a policy decision GAD will be unable to generate sufficient income to remain within the net resource limit and a reserve claim of £300,000 to meet this shortfall is included which will be deducted from next year's DEL total.
An increase in non-voted DEL of £95,000 from £6,000 to £101,000 to cover the cash effect of payments made against two provisions for ongoing early retirement and injury benefit costs under the civil service injury benefit scheme.
The change in the capital element of DEL arises from a budget switch of £72,000 from non-staff resource DEL expenditure.
HM Revenue and Customs: Departmental Expenditure Limit (2010-11)
The Exchequer Secretary to the Treasury (Mr David Gauke): Subject to parliamentary approval of the supplementary estimate, the HM Revenue and Customs total DEL will be increased by £12,000,000 from £3,706,342,000 to £3,718,342,000. Within the total DEL change, the impact on resources and capital are as set out in the following table:
The change in the resource element of DEL arises from:
Reserve claim of £12,500,000 administration (approved by CST) to fund the use of debt collection agencies in tackling £500 million of tax debt;
Decrease of £2,500,000 administration due to a budgetary cover transfer to Communities and Local Government to fund Opendata (Ordnance Survey mapping services);
£2,000,000 EYF claim for programme funds (approved by CST) to cover work on the Contracts Finder portal (formerly Glover portal) in connection with the Business.gov website;
£35,000,000 funds transfer from capital to resource DEL (administration), to correct the alignment of HMRC's share of the austerity savings recorded at the main estimate.
The change in the administration budget arises from the specific administration items detailed in the resource element above.
The change in the capital element of DEL arises from:
£35,000,000 funds transfer from capital to resource del (administration), to correct the alignment of HMRC's share of the austerity savings recorded at the main estimate.
Departmental Expenditure Limit (2010-11)
The Economic Secretary to the Treasury (Justine Greening): Subject to parliamentary approval of the spring supplementary estimate, HM Treasury's resource DEL will be increased by £14,148,000 from £180,063,000 to £200,231,000. The administration budget will be increased by £12,724,000 from £137,594,000 to £150,318,000. The impact on resources, including the administration budget is set out in the following table:
| Change | New DEL | ||||
| Voted | Non-voted | Voted | Non-voted | Total | |
| * Capital DEL includes items treated as resource in estimates and accounts but which are treated as Capital DEL in budgets. **Depreciation, which forms part of Resource DEL, is excluded from the total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | |||||
The net increase in resource DEL of £14,148,000 is the net effect of the take-up of administration budget (£2,400,000) and programme (£1,600,000) EYF in RfR1
section A to fund the costs of the increased work load which includes the funding of various new Treasury related bodies and the draw down from the modernisation fund of £7,598,000 administration costs to fund costs associated with the Fast Forward IT project. There is also a transfer of £5,552,000 from capital to resources to fund the increased work load pressures.
As a result of the machinery of government (MoG) transfer of the Office of Government Commerce (OGC), £3,002,000 (£2,826,000 administration and £176,000 programme) is being transferred to the Department for Business, Innovation and Skills (BIS) to reflect the transfer of responsibility for the Government property and facilities management teams.
Additionally there are movements from non-voted to voted spending within the DEL total to reflect the draw-down of departmental unallocated provision (DUP) of £709,000 administration and £1,716,000 programme and the reallocation of an underspend on utilisation of provision of £9,490,000 to voted spending.
The administration budget is increasing by £12,724,000, which is the net effect of the EYF take-up (£2,400,000), draw-down from the modernisation fund (£7,598,000), a transfer from capital (£5,552,000) and the MoG transfer (£2,826,000) of OGC to BIS.
The capital DEL decreases by £101,000 which is the net result of the draw-down of £5,451,000 from the modernisation fund to cover spending on the Fast Forward IT project less a transfer to resources of £5,552,000. Additionally, voted DEL is being increased by £3,400,000 following the take-up of DUP.
National Savings and Investments: Departmental Expenditure Limit (2010-11)
The Financial Secretary to the Treasury (Mr Mark Hoban): Subject to parliamentary approval of any necessary supplementary estimate, National Savings and Investments resource departmental expenditure limit (DEL) will be increased by £3,942,000 to £172,344,000 and capital DEL will be increased by £1,000,000 to £1,464,000. Within DEL change, the impact on resources and capital are set out in the following table:
| Change | New DEL | Total | |||
| Voted | Non-voted | Voted | Non-voted | ||
| (*)Capital DEL includes items treated as resource in estimates and accounts but which are treated as capital DEL in budgets (**)Depreciation which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | |||||
The change in the resource and capital elements of DEL arises from the take-up of end-year flexibility (EYF).
Cabinet Office
Social Investment Strategy
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude): My hon. Friend the Minister responsible for civil society, the Parliamentary Secretary, Cabinet Office, the hon. Member for Ruislip, Northwood and Pinner (Mr Hurd) and I are today publishing a strategy for social investment, "Growing the Social Investment Market", which gives more detail on the role of the big society bank, alongside other measures to build the market. I am placing copies in the Libraries of both Houses and making it available on the Cabinet Office website.
Social entrepreneurs, and the social ventures they lead, bring innovative solutions to some of our most intractable social problems, by combining commitment to a clear social mission with financially sustainable business models. They are crucial to building a bigger, stronger society, as well as contributing to economic growth and employment. However, social entrepreneurs are often held back by a lack of access to investment finance, which means they find it difficult to get started, to expand their ventures and to achieve their full potential. This is particularly the case now that public spending is constrained and many organisations that may have previously relied on some grant funding to survive are having to cope with the difficult transition to a new financing landscape.
The Government therefore want to accelerate the development of the emerging social investment market, to increase the supply of capital available to social ventures. Our vision is for a market in which investors-from individual citizens to large institutions and charitable trusts and foundations-can choose to "invest for good" by putting their money into organisations that create positive social impact and a financial return. In the long term we want this to become the norm: a third pillar of funding alongside traditional giving and public service income.
The big society bank will play a crucial part in catalysing the development of this market, and some of its functions will be in place in April 2011. And we will now work with leading social investment experts to develop a proposal for the establishment of the big society bank as an independent private sector organisation, with its social mission "locked-in". The bank will act as a wholesaler to build the market and leverage in new finance. It will operate in a transparent way, publishing annual accounts including details of the financial and social impact of its investments, and it will be financially self-sufficient-able, in time, to cover its operating costs and make investments in line with its core mission. The bank will also act as a champion for the social investment market, offering advice and assistance, and acting as a vital portal to connect social ventures with sources of investment.
Alongside establishing the big society bank, action being taken by Government-to open up public services to a wider range of providers; to empower communities to purchase and run local assets; to review the effectiveness of the current fiscal, regulatory and legal framework for social investment; and to provide financial and other
support for social ventures to build their business capability-will help create the right conditions for the market to thrive and grow.
Government and the big society bank cannot achieve this alone. So the strategy also calls on others to play their part. Social ventures and other civil society organisations will need to be willing to explore new forms of financing, and prove that they have financially sustainable business models. Existing specialist intermediaries will have a critical role in developing their product ranges and support and will need to compete with new intermediaries entering the market. Charitable trusts and foundations are in a good position to free up a portion of their investment and endowment assets, which account for nearly £95 billion, for social investment. We look to mainstream financial institutions to dedicate resources to create new products, to build expertise and to leverage their distribution networks. And ultimately, we want individual citizens to start to see social investment as a core savings proposition.
Taken together this framework for action and the establishment of the big society bank will enable the great work being carried out by the innovative, committed people and organisations across the UK to have a major impact in building a better, stronger society.
Departmental Expenditure Limit (2010-11)
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude): Subject to parliamentary approval of the spring supplementary estimate 2010-11, the Cabinet Office total departmental expenditure limit (DEL) will be increased by £17,630,000 from £559,087,000 to £576,717,000.
The impact on resources and capital is set out in the following table:
| £'000 | Winter Supplementary Estimate | Changes | Spring Supplementary Estimate | ||||||
| DEL | New DEL | ||||||||
| Voted | Non-voted | Total | Voted | Non-voted | Total | Voted | Non-voted | Total | |
| (*)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. (**)Capital DEL includes items treated as resource in estimates and accounts but which are treated as capital DEL in budgets. | |||||||||
Summary of Changes in Departmental Expenditure Limit (DEL)
The change in the resource element of DEL is an increase of £2,035,000 which comprises: £6,172,000 agreed claims on the reserve, £4,137,000 reduction for transfers to capital DEL.
The change in the capital element of DEL is an increase of £15,595,000 which comprises £11,458,000 capital DEL end-year flexibility draw-down and transfers from resource to capital for £4,137,000.
Changes in Resource DEL (RDEL)
The changes which result in a net increase in resource DEL (RDEL) of £2,035,000 are as follows:
Agreed claims on the Reserve £6,172,000
A claim on the reserve for v match funding increases resource DEL, net resource and net cash requirement by £6,172,000.
Transfers from Resource DEL to Capital DEL £4,137,000
A transfer from administration expenditure within resource DEL to capital DEL to cover the costs for small projects of £728,000. Net resource requirement will reduce by £728,000 and net cash requirement remain the same.
A transfer from resource DEL administration expenditure to capital DEL to cover expenditure on projects enhancing the computer system which supports civil service pensions for £350,000. Net resource requirement will reduce by £350,000 and net cash requirement remain the same.
A transfer from administration expenditure within resource DEL to capital DEL to cover the costs for small projects £750,000. Net resource requirement will reduce by £750,000 and net cash requirement remain the same.
A transfer within Directgov from administration expenditure within resource DEL to capital DEL to cover expenditure on Directgov channel development projects was identified as capital as part of work to comply with IFRS for £2,215,000. Net resource requirement will reduce by £2,215,000 and net cash requirement remain the same.
A switch from non-voted programme expenditure within resource DEL to capital DEL to cover additional non-voted capital expenditure to eNDPBs decreases RDEL by £94,000. Net resource requirement and net cash requirement remain the same.
The changes which result in a net increase In capital DEL (CDEL) of £15,595,000 are as follows:
End Year Flexibility £11,458,000
A draw-down of end-year flexibility to cover capital grant programmes run by the Office for Civil Society (OCS) increases capital DEL, net resource requirement and net cash requirement by £11,458,000.
Transfers from Resource DEL to Capital DEL £4,137,000
A transfer from administration expenditure within resource DEL to capital DEL to cover the costs of small projects of £728,000. Net cash requirement remain the same and capital DEL will increase by £728,000.
A transfer from administration expenditure within resource DEL to capital DEL to cover expenditure on projects enhancing the computer system which supports civil service pensions of £350,000. Net cash requirement remain the same and capital DEL will increase by £350,000.
A transfer from administration expenditure within resource DEL to capital DEL to cover the costs for small projects of £750,000. Net cash requirement remain the same.
A transfer within Directgov from administration expenditure within resource DEL to capital DEL to cover expenditure on Directgov channel development projects was identified as capital as part of work to comply with IFRS for £2,215,000. Net resource requirement will reduce by £2,215,000 and net cash requirement remain the same.
A switch from non-voted resource DEL to capital DEL to cover additional non-voted capital expenditure to eNDPBs decreases RDEL by £94,000. Net resource and net cash requirement remain the same.
UK Statistics Authority: Departmental Expenditure Limit (2010-11)
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude): Subject to parliamentary approval of any necessary supplementary estimate, the UK Statistics Authority's total departmental expenditure limit (DEL) will be increased by £700,000 from £319,533,000 to £320,233,000, and the programme budget will be increased by £700,000(1).
Within the DEL change, the impact on resources and capital is as set out in the following table:
| £'000 | |||||
| Change | New DEL | ||||
| Voted | Non-Voted | Voted | Non-voted | Total | |
| **Capital DEL includes items treated as resource in estimates and accounts but which are treated as capital DEL in budgets. *Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting | |||||
The change in the resource element of DEL arises from:
The take-up of departmental unallocated provision (DUP) of £6,000,000 in order to finance 2011 Census
Budget cover £700,000 from other Government Departments in support of the migration statistics improvement programme
The change in the programme budget arises from draw-down of draw-down of £6,000,000 of DUP and budget cover from DCLG of £700,000.
(1)The UK Statistics Authority is the operating name of the legal entity "the Statistics Board", created in the Statistics and Registration Service Act 2007. The Main Estimates were submitted using the name "the Statistics Board".
Communities and Local Government
Affordable Homes Programme
The Minister for Housing and Local Government (Grant Shapps): Further to my written statement of 9 December, Official Report, column 31WS, I am today announcing the publication of the framework for the Government's affordable homes programme for 2011-15. This document is published jointly by my Department and the Homes and Communities Agency.
The affordable homes programme is designed to support the delivery of up to 150,000 new affordable homes through a mixture of new investment (some £4.5 billion over the next four years) and greater flexibility for social housing providers to make the best use of existing and future assets. The new affordable rent model, which will be the principal element of the programme, will make public subsidy go further while also enabling local authorities and providers to target support where it is most needed.
The framework document invites offers from providers who are interested in participating in the programme. The full document is available at www.homesandcommunities.co.uk/affordable-homes.
In parallel, my right hon. Friend the Minister with responsibility for decentralisation, the Minister of State, Department for Communities and Local Government, the Member for Tunbridge Wells (Greg Clark) has today launched a consultation on a technical revision to annex B of planning policy statement 3 to make clear that affordable rent falls within the definition of affordable housing for planning purposes. The consultation document is available at www.communities.gov.uk/publications/planningandbuilding/pps3annexconsultation.
In addition, to give providers more certainty over future income, I have today confirmed that the existing inflation-linked formula for annual rent increases in social rented housing will continue to apply throughout the 2011-15 period, as part of the Government's rent restructuring policy.
Copies of both documents have been placed in the Library of the House.
Departmental Expenditure Limit (2010-11)
The Secretary of State for Communities and Local Government (Mr Eric Pickles): Subject to parliamentary approval of the spring supplementary estimate, the Department for Communities and Local Government's departmental expenditure limits, (DEL) for 2010-11 will change as follows:
Section 1: Main Programmes DEL
1. The Department for Communities and Local Government's main DEL will be increased by £326,477,000 from £9,853,667,000 to £10,180,144,000 and the
administration budget will be decreased by £2,100,000 from £262,012,000 to £259,912,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
| (£'000) | |||||
| Change | NEW DEL | ||||
| Voted | Non-voted | Voted | Non-voted | Total | |
| (*)Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets (**)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 | |||||
2. The change in the resource element of the DEL arises from:
2.1 An internal transfer of £522,000 from request for resources 1 (main DEL) to request for resources 2 (local government DEL) to pay the Audit Commission bill for fire inspection work;
2.2 A net transfer of £4,700,000 from other Government Departments, made up of:
2.3 A net increase in receipts of £23,338,000. This is made up of increases in provision of:
£100,000 for Residential Property Tribunal Service in respect of hearing application fees;
£42,000 towards the aggregates minerals survey, comprising £20,000 from the Welsh Assembly, £12,000 from the Scottish Executive and£10,000 from the Department for Business Innovation and Skills;
£600,000 from the Department for Energy and Climate Change towards the English Housing Survey;
£9,810,000 for the Planning Inspectorate to bring the receipt in line with their projected income;
£381,000 for fire and rescue services improvement programme for payment of the Audit Commission bill;
£2,200,000 for control rooms in respect of compensation for building work on the East Midland Regional Control Centre;
£2,500,000 for Ordnance Survey to cover their income from provision of OpenData;
£7,955,000 for Government Office programmes (administration budget) comprising £440,000 for work on the older persons agenda; £1,515,000 for space lease out in Government Office buildings to minor occupiers and £6,000,000 for staff exit costs from the Department for Environment, Food and Rural Affairs, the Home Office and the Department for Education.
offset by decreases in provision of:
£250,000 for adults facing chronic exclusion as this income will not be received.
2.4 A net transfer of £58,000 programme provision from non-voted to voted made up as follows:
from voted to non-voted provision
£159,000 to the Homes and Communities Agency in respect of the Advisory Team on Large Applications (ATLAS);
£2,800,000 for Community Development Foundation for pension risks;
£246,000 for Thurrock Urban Development Corporation to increase their depreciation budget;
from non- voted to voted provision
£3,147,000 to control rooms comprising £2,831,000 from the departmental unallocated provision and £316,000 from the Tenant Services Authority for costs associated with programme closure;
2.5 The changes described at paragraphs 2.3 and 2.4 above have a net nil effect on the departmental expenditure limit. The additional budget sought for the items at 2.3 is fully offset by a corresponding increase in receipts. The net transfer between voted and non-voted expenditure reflects only a re-classification of budget, not additional expenditure.
2.6 The change in the administration budget arises from the transfer of £2,100,000 from the Government Offices to the Department for Work and Pensions-see above table at 2.2.
3. The change in the capital element of the DEL arises from:
3.1 Draw-down of end of year flexibility of £390,000,000, as follows:
£200,000,000 to fulfil the remaining national affordable housing programme commitments;
£140,000,000 for contractual commitments on the decent homes programme and mortgage rescue scheme; and
£50,000,000 for the Kickstart programme.
3.2 Transfer to HM Treasury of £23,000,000 for the local authority new build to cover the local authority borrowing element of the programme. The local authority new build programme is funded by a mixture of the Homes and Communities Agency grants and local authorities own prudential borrowing. Prudential borrowing is treated as public expenditure and has to be reflected in HM Treasury's accounts. Therefore, HM Treasury require an offsetting transfer from DCLG budgets to HM Treasury's budget to reflect the increased borrowing requirement.
3.3 A net increase in receipts of £128,979,000. This is made up of increases in provision of:
£80,888,000 for the re-classification of the regional control centre leases from inventory to finance leases;
£62,069,000 of potential assets to be transferred to the fire and rescue authorities;
£4,046,000 for capital pooled housing receipts. These receipts are available to fund pressures arising elsewhere in the Department
offset by decreases in provision of:
£18,024,000 for the regional control centres leases that the Department is expecting to transfer out this financial year. HM Treasury agreed that the Department will receive a capital credit upon the transfer of any of the regional control centres leases.
3.4 A transfer of £36,507,000 from non-voted to voted made up of:
£20,000,000 of receipts generated from the Homes and Community Agency from development land disposals to community empowerment to meet emerging pressures;
£7,553,000 from Homes and Communities Agency growth due to withdrawal of funding in support of eco-towns and
an adjustment of £8,954,000 within new dimension for the surrendering of the extra receipts to the Consolidated Fund.
3.5 The changes described at paragraphs 3.3 and 3.4 above have a net nil effect on the departmental expenditure limit:
Section 2: Local Government DEL
4. The Department for Communities and Local Government's local government DEL will be decreased by £648,000 from £25,990,195,000 to £25,989,547,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
| Change | NEW DEL | ||||
| Voted | Non-voted | Voted | Non-voted | Total | |
| (*)Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets (**)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. | |||||
5. The change in the resource element of the DEL arises from:
the transfer of £522,000 to request for resources 2 (local government DEL) from request for resources 1 (main DEL) described at paragraph 2.1 above;
a transfer of £2,500,000 to the Ministry of Justice towards the costs of the 7/7 bombing inquest costs. This item will not be shown on the face of the estimate, because voted provision can be reduced only for machinery of government changes and transfers from one request for resources to another within the same estimate. It will be classified as an estimate exclusion item; and
a switch of £15,000 from resource to capital for valuation tribunals tocover additional telephone costs for their Doncaster office.
6. The change in the capital element of the DEL arises from:
a refund of £1,470,000 from the Department for Work and Pensions for Government Connect, due to an under spend on the project; and
a switch of £15,000 to capital from resource as described above at paragraph 5.
Culture, Media and Sport
Departmental Expenditure Limit (2010-11)
The Secretary of State for Culture, Olympics, Media and Sport (Mr Jeremy Hunt):
Subject to parliamentary approval, the Department for Culture Media and Sport's
departmental expenditure limit (DEL) will be increased by £88,500,000 from £1,996,963,000 to £2,085,463,000. Within the DEL change the impact on resource and capital are set out in the following table:
| Change | New | DEL | £'000 | ||
| Voted | Non-voted | Voted | Non-voted | Total | |
| (*)Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets. (**)Depreciation, which forms part of resource DEL, is excluded from total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | |||||
The change in the Resource element of the DEL arises from:
Take up of £18,000,000 End Year flexibility comprising: (£10,000,000) for Museums and Galleries, and (£8,000,000) for Broadcasting; Claims on the Reserve totalling £56,000,000 comprising budgetary cover (£48,000,000) in respect of the London Organising Committee of the Olympic and Paralympic Games, (£5,000,000) for the Listed Places of Worship Scheme and (£3,000,000) for costs associated with the sale of the Tote, and an agreed transfer of £60,000 from to Capital to Resource DEL to correct a misalignment of funds in the Winter Supplementary Estimate, partially offset by transfers to other Government Departments of £10,500,000, (£8,000,000) to support Stage 2 Devolution in Northern Ireland and (£2,500,000) to Department for Communities and Local Government for the Ordnance Survey contribution.
The Capital element of the DEL has increased by £24,940,000 as a result of:
The drawdown of £25,000,000 End Year Flexibility (EYF) for the Museums and galleries, and an agreed transfer of £60,000 from Capital to Resource DEL to correct a misalignment of funds in the Winter Supplementary Estimate.
Government Olympic Executive (Annual Report)
The Minister for Sport and the Olympics (Hugh Robertson): I am publishing today the Government Olympic Executive's annual report-"GOE London 2012 Olympic and Paralympic Games Annual Report February 2011". This report explains the latest budget position as at 31 December 2010, and outlines the many wider economic, sporting and social legacy benefits to the UK.
The overall public sector funding package for the games remains at £9.298 billion following the spending review announcement on 20 October 2010. The funding package will, however, be reconfigured from April 2011 to make provisions for operational requirements, reflecting the changing focus of the programme from construction to operational delivery. Also from April 2011, Government funding for the programme-excluding security which
sits with the Home Office and other Government Departments-will be held by the Department for Culture, Media and Sport.
The London 2012 Olympic and Paralympic games remain on time and within budget. The Olympic Delivery Authority's (ODA) anticipated final cost (AFC) now stands at £7.301 billion, which includes additional funding of £57 million for park operations.
Park operations are the additional responsibilities taken on by the ODA for the operation of the Olympic park and its venues and facilities between 2011 and the handover to legacy owners by 2014. On a like-for- like basis, excluding the park operations budget, the current AFC has increased by £12 million from that of 30 September 2010. The £12 million increase is a consequence of several movements across the programme including forecast savings on the Olympic stadium, security and logistics, offset by forecast increases for infrastructure such as utilities and landscaping. Around £0.5 billion of contingency remains available for programme-wide risks. A total of over £780 million in savings has been achieved by the ODA since November 2007.
The ODA continues to make strong progress in preparing the venues and infrastructure in the Olympic park, with 79 per cent of the programme to the 2012 games now completed. The Olympic stadium is structurally complete with the cable net roof covered, all 14 lighting towers in place and all spectator seats installed. The Aquatics Centre permanent structure and roof are in place, with the structures of the temporary seating stands for games-time spectators nearing completion. The Velodrome remains on target to be the first Olympic park sporting venue to be finished later this month. The structures of the handball and basketball arenas are now completed, with work progressing on the venues' interiors. The structures of the international broadcast centre, main press centre and multi-storey car park are all complete. Recent milestones of the project include the completion of the first brand new venue, the Lee Valley White Water Centre at Broxboume and the official turning on of the Olympic stadium lights by the Prime Minister and Mayor of London. As of December 2010, over 12,000 people were working on the Olympic park and Olympic village.
In December 2010, the Government published a legacy plan, which sets out the legacy vision for the 2012 Olympic and Paralympic games and the detailed plans underpinning it. The Government are committed to making the most of the games for the whole of the UK. It has identified four areas to focus on: Harnessing the UK's passion for sport to increase grassroots participation, particularly by young people, and to encourage the whole population to be more physically active; exploiting to the full the opportunities for economic growth offered by hosting the games; promoting community engagement and achieving participation across all groups in society through the games; and ensuring that the Olympic park can be developed after the games as one of the principal drivers of regeneration in East London.
I would like to commend this report to the members of both Houses and thank them for their continued interest in and support for the London 2012 Olympic and Paralympic games.
Copies of the GOE annual report February 2011 are available online at: www.culture.gov.uk and will be deposited in the Libraries of both Houses.
Defence
Departmental Expenditure Limit (2010-11)
The Secretary of State for Defence (Dr Liam Fox): Subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence departmental expenditure limits (DEL) will be increased by £603,289,000 (voted and non-voted) from £37,322,254,000 to £37,925,543,000. Within the DEL change, the impact on Resources and Capital are as set out in the following table:
| Change | New DEL | ||||
| Voted | Non-Voted | Voted | Non-Voted | Total | |
| (*)From the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | |||||
The changes to the resource and capital elements of the DEL arise from:
Voted Resource DEL increase £3,343,915,000:
1) An increase of £700,000,000 for additional funding agreed as part of the spending review settlement;
(2) To reflect a transfer of £250,000,000 from Capital DEL to Resource DEL within RfRl relating to Single Use Military Equipment (SUME) flexibility with no overall impact on DEL;
(3) Additional (non-cash) resource provision of £2,300,000,000 for impairments and write-offs resulting from the Defence Equipment & Support (DE&S) stock accounting and verification project;
(4) To increase Non Budget Grants in Aid (Non-Voted) for the National Army Museum of £243,000 and £705,000 for the Council of Reserve Forces and Cadets Association in Land Forces TLB by reducing Resource DEL current costs and increasing Non Budget Grants in Aid with no overall impact on resource.
(1) To reflect a transfer of £105,363,000 from Capital DEL to Resource DEL within RfR2 relating to SUME flexibility with no overall impact on DEL;
(2) To reflect a reduced forecast of £8,000,000 relating to RfR2 non-cash costs;
(3) To reduce Voted Resource DEL by £2,500,000 relating to cash release of provisions that has been switched to Non-Voted Resource;
(4) To revise sub-head provisions to reflect Resource and Capital revisions in allocations between Top Level Budget Holders to match required Defence outputs, with no overall impact on DEL.
Non-Voted Resource DEL increase £4,737,000:
(1) To reflect the Non-Voted impact of an increase Non Budget Grants in Aid (Non-Voted) for the National Army Museum of £243,000 and £705,000 for the Council
of Reserve Forces and Cadets Association in Land Forces TLB by reducing Resource DEL current costs and increasing Non Budget Grants in Aid with no overall impact on resource;
(2) To reflect an omitted increase in Non-Voted provision of £1,289,000 for increased Grant-in-Aid funding at Winter Supplementary Estimates.
(1) To reflect an increase of £2,500,000 in the cash release of provisions forecast relating to RfR2.
Voted Capital DEL decrease £453,363,000:
(1) To reflect a transfer of £250,000,000 from Capital DEL to Resource DEL within RfRl relating to SUME flexibility with no overall impact on DEL;
(2) To align Urgent Defence Requirement funding with reduced forecast capital expenditure of £98,000,000.
(1) To reflect a transfer of £105,363,000 from Capital DEL to Resource DEL within RfR2 relating to SUME flexibility with no overall impact on DEL.
The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £602,000,000.
Education
Departmental Expenditure Limit (2010-11)
The Secretary of State for Education (Michael Gove): Subject to parliamentary approval of any necessary supplementary estimate, the Department for Education (DfE) departmental expenditure limit (DEL) will be increased by £752,963,000 from £57,899,096,000 to £58,652,059,000; the administration cost budget will decrease by £195,000 from £182,003,000 to £181,808,000. The Office for Standards in Education, Children's Services and Skills (OFSTED) which has a separate Estimate and DEL, will remain at £190,196,000 with the administration cost budget remaining at £27,337,000. The Office of Qualifications and Examination Regulation (OFQUAL) which also has a separate Estimate and DEL, will remain at £23,400,000.
Within the DEL change, the impact on resources and capital is as set out in the following table:
| DfE | Resources | Capital(**) | ||||||
| Change | New DEL | Of which: Voted | Non-voted | Change | New DEL | Of which: Voted | Won- voted | |
| (*)Depreciation, which forms part of resource DEL, is excluded from the total DEL, in the table above, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. (**)Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets. | ||||||||
The increase in the resource element of the DEL of £108,880,000 arises from a decrease in the voted element of the resource DEL of £2,124,182,000 and an increase of £2,233,062,000 in the non-voted element of resource DEL, mainly in the Department's Arm's Length Bodies.
The £2,124,182,000 decrease in the voted element of the resource DEL arises from:
A Machinery of Government transfer to the Ministry of Justice of £195,000 in respect of Administration costs for the Joint Youth Justice Unit. This was a joint project between the Department for Education and the Ministry of Justice. Responsibility for this has been moved entirely to the Ministry of Justice. All Programme costs were transferred in the Winter Supplementary.
A transfer from the Department for Business, Innovation and Skills of £1,000,000 for the Family Learning Impact Fund to recoup unspent funding from 2009-10.
A transfer from the Ministry of Justice of £250,000 in respect of Think Family Grants funding the Family Intervention Project.
A switch of £110,000,000 from Resource spending to Capital Grants spending for Schools and Teachers.
Take up of Departmental End Year Flexibility of £191,000,000 to increase provision for Dedicated Schools Grant.
A movement from RfR2 of £5,411,000 to fund Free Childcare for Training and Learning for Work spending and to fund the delivery of the Outreach training programme.
A movement of £2,246,053,000 to non-voted resource DEL to support the Department's Arm's Length Bodies.
Take up of Departmental End Year Flexibility of £15,000,000 to increase provision for Current Grants to Local Authorities for Sure Start, Early Years and Childcare to promote the physical, intellectual and social development of babies and young people through Sure Start.
A movement to RfRI of £5,411,000 to fund Free Childcare for Training and Learning for Work spending and to fund the delivery of the Outreach training programme.
A movement from non-voted of £24,816,000 to fund Current Grants to Local Authorities for Sure Start, Yearly Years and Childcare.
The £2,233,062,000 increase in Non-voted resource DEL arises from:
A transfer from the Department for Business, Innovation and Skills of £11,900,000 for Higher Discretionary Support for 19-24 year olds.
A transfer to the Department for Business, Innovation and Skills of £75,000 to cover transfer costs for British Educational Communications and Technology Agency staff.
A movement of £2,246,053,000 from voted resource to support the Department's Arm's Length Bodies.
A movement of £24,816,000 to voted resource to fund Current Grants to Local Authorities for Sure Start, Yearly Years and Childcare
The increase in the capital element of the DEL of £644,083,000 arises from an increase in the voted element of capital DEL of £607,219,000 and an increase of £36,864,000 non-voted element of capital DEL.
The £607,219,000 increase in the voted element of capital DEL arises from:
A switch of £110,000,000 from Resource spending to Capital Grants spending for Schools and Teachers.
A transfer from the Department for Work and Pensions of £460,000 in respect of Government Connect.
Take up of Departmental End Year Flexibility of £84,192,000 to increase provision for Capital Grants to Local Authorities to Support Children and Families.
Take up of Departmental End Year Flexibility of £228,000,000 to increase provision for Schools and Teachers.
A movement from non-voted of £6,567,000 to fund Children and Families.
Take up of Departmental End Year Flexibility of £178,000,000 to promote the physical, intellectual and social development of babies and young people through Sure Start.
The £36,864,000 increase in the non-voted element of capital DEL arises from:
Take up of Departmental End Year Flexibility of £43,431,000 to support the Department's Arm's Length Bodies.
A movement to voted of £6,567,000 to fund Children and Families.
Office for Standards in Education, Children's Services and Skills
The main change to Ofsted's Resource relates to the drawn down of £3.7m Departmental Unallocated Provision. This additional Resource will be used to support Ofsted's regulation and inspection activities. Resource of £0.25m has also been transferred to Capital. This will enable Ofsted to invest in capital assets including IT equipment.
Office of Qualifications and Examination Regulation
There has been no change in overall DEL limits within the Spring Supplementary.
Energy and Climate Change
Departmental Expenditure Limit (2010-11)
The Secretary of State for Energy and Climate Change (Chris Huhne): Subject to parliamentary approval of any necessary supplementary estimate, the Department of Energy and Climate Change departmental expenditure limit (DEL) will increase by £154,009,000 from £3,112,598,000 to £3,266,607,000.
Within the DEL change, the impact on resources and capital are as set out in the following table:
| £'000 | Change | New DEL | |||
| Voted | Non-Voted | Voted | Non-Voted | Total | |
| (*)Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets. (**)Depreciation, which forms part of Resource DEL, is excluded from the total DEL in the table above, since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | |||||
The increase in the Resource element of the DEL of £73,017,000 arises from an increase in the voted element of Resource DEL of £47,622,000 and an increase of £25,395,000 in the non-voted element of Resource DEL.
The £47,622,000 increase in the voted element of Resource DEL arises from:
The take up of End Year Flexibility of £43,000,000 for Carbon Capture and Storage FEED (Front End Engineering and Design) costs.
The take up of Administration End Year Flexibility of £9,855,000 for the administration costs of consumer levies.
A transfer to non-voted Resource DEL of £5,223,000.
A transfer to the Northern Ireland Executive of £10,000 for Low Carbon Buildings Programme Barnett consequentials.
The £25,395,000 increase in non-voted Resource DEL arises from:
The take up of End Year Flexibility of £20,000,000 for the Nuclear Decommissioning Authority.
A transfer from voted Resource DEL of £5,223,000.
A transfer from the Department for Environment, Food and Rural Affairs of £172,000 for the Committee on Climate Change.
The increase in the Capital element of the DEL of £84,232,000 arises from a decrease in the voted element of Capital DEL of £768,000 and an increase of £85,000,000 in the non-voted element of Capital DEL.
The £768,000 decrease in the voted element of Capital DEL arises from:
An increase of £1,000,000 in non-operating appropriations-in-aid for Energy Efficiency Loan repayments formerly scored as Consolidated Fund Extra Receipts.
A transfer from the Ministry of Justice of £337,000 for the repayment of Energy Efficiency Loan paid as Grant to the National Offender Management Service.
A transfer to the Northern Ireland Executive of £105,000 for Low Carbon Buildings Programme Barnett consequentials.
The £85,000,000 increase in the non-voted element of Capital DEL arises from:
The take up of End Year Flexibility of £84,000,000 for the Nuclear Decommissioning Authority.
A decrease of £1,000,000 in Consolidated Fund Extra Receipts for Energy Efficiency Loan repayments, now scored as non-operating appropriations-in-aid.
The increase of £9,855,000 in the Administration Budget arises from:
The take up of End Year Flexibility of £9,855,000 for the administration costs of consumer levies.
Ofgem-Departmental Expenditure Limit (2010-11)
Subject to Parliamentary approval of the necessary Supplementary Estimate, the Office of Gas and Electricity Market's DEL will decrease by £250,000 from £1,351,000 to £1,101,000 and the administration budget will decrease by £250,000 from £1,401,000 to £1,151,000.
| Change | New DEL | |||
| £'000 | Voted | Voted | Non-voted | Total |
| (*)Capital DEL includes items treated as Resource in Estimates and accounts but which are treated as Capital DEL in budgets. (**)Depreciation, which forms part of resource DEL, is excluded from Total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. | ||||
The decrease of £250,000 in the Administration Budget within the Resource element of the DEL arises from a switch to Annually Managed Expenditure to cover take-up and utilisation of provisions.
There is no change in the capital element of the DEL.
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