Foreign and Commonwealth Office Winter
Supplementary Estimate 2010-11 Memorandum
INTRODUCTION
1. The Foreign and Commonwealth Office Estimate
has two Requests for Resources (RfRs):
- RfR1: Promoting internationally the interests
of the UK and contributing to a strong world community, that covers:
- Section A: Expenditure by the Foreign and Commonwealth
Office (FCO), including UK Trade and Investment, on its administration,
FCO Services, Wilton Park Executive Agency, hospitality and facilities;
international organisations; grants in aid to bodies supporting
FCO objectives; scholarships, information services and sponsored
visits; special payments and assistance programmes to support
foreign policy objectives including human rights, good governance,
international security and the fight against the illicit drug
trade; and international organisations; and on associated non-cash
items;
- Sections B and C: Resource grant in aid to the
BBC World Service for broadcasting and to the British Council,
respectively;
- Sections D and E: Capital grant in aid to the
BBC World Service for broadcasting and to the British Council,
respectively.
- Section F: AME Provision for impairments and
liabilities in relation to staff leave ; and
- Section G: The refund of certain taxes and duties
paid by certain Foreign and Commonwealth governments.
- RfR2: Conflict prevention, that covers:
- Section A: Expenditure by the Foreign and Commonwealth
Office on conflict prevention, early warning, crisis management,
conflict resolution/peacemaking;
- Section B: Peacekeeping and peace building activity
and on associated strengthening of international and regional
systems and capacity; and
- Section C: Provision of specialist, targeted
assistance in countries emerging from violent conflict.
RFR1 WINTER
SUPPLEMENTARY ESTIMATES
CHANGES
Take up of EYF
2. We have taken up £15,000,000 DEL EYF
administration costs in respect of modernising the core FCO.
Claims on the DEL Reserve
3. We have made a claim on the DEL Reserve of
£15,000,000 administration costs in respect of modernisation
of FCO Corporate Services.
Take up of Departmental Unallocated Provision
4. We have taken up of £17,000,000 administration
DUP to offset adverse exchange rate movements.
Transfers of Budgetary Cover
5. Transfers of budgetary cover include:
- Transfer of £1,850,000 administration
from the Department for Education in respect of the Papal visit.
- Transfer of £1,850,000 administration
from the Department for International Development in respect of
the Papal visit.
- Transfer of £1,850,000 administration
from the Department of Energy and Climate Change in respect of
the Papal visit.
- Transfer of £1,850,000 administration
from the Department for Environment, Food and Rural Affairs in
respect of the Papal visit.
- Transfer of £1,850,000 administration
from the Department for Communities and Local Government in respect
of the Papal visit.
- Transfer of £100,000 programme
from the Department for International Development in respect of
the Strategic and Bilateral Fund in the Democratic Republic of
Congo (DRC). DFID DRC are contributing
to the funding of small-scale, catalytic development projects
across the DRC to achieve British Embassy Kinshasa objectives
within the framework of the One Embassy vision.
- Transfer of £180,000 administration
from the Department for International Development in respect of
the gratis visa operation in Chernobyl. This operation covers
the costs of visas issued to Chernobyl children coming on medical
recuperation breaks to the UK.
- Transfer of £40,000,000 programme
from the Department for International Development in respect of
support for British Council Official Development Assistance.
- Transfer of £200,000 programme
from the Department for International Development in respect of
a Police Training project in Tanzania.
Other Changes
6. A Capital to Administration switch of £25,000,000
in respect of exchange rate pressures.
7. A change in Annually Managed Expenditure (AME)
due to an increase in Impairments of £20,000,000. Impairments
are the loss of value on an asset (ie a building), due to the
special requirement we have for the asset (ie enhanced security
work), which will not be reflected in its overall market value.
8. A Capital transfer of £265,000 to the
Department for International Development as a contribution towards
building a new office in Juba, Sudan.
RFR2 WINTER
SUPPLEMENTARY ESTIMATES
CHANGES
Transfers of Budgetary Cover To/From Other Government
Departments
9. Transfers of budgetary cover include:
- Transfer of £16,467,000 grants
from DFID for conflict prevention and peacekeeping activities.
10. The above transfer reflects the revised structure
of RfR2. Conflict prevention activities are now managed through
five strategies: the SAF Afghanistan and CPP South Asia programmes
have been merged; so too the SAF Iraq and CPP Middle East and
North Africa programmes. A new Wider Europe programme funds activity
in Russia/Commonwealth of Independent States and the Balkans (previously
individual programmes). The Africa programme continues. A separate
programme has been earmarked for thematic work, including support
to international institutions. The Strategies continue to be managed
tri-departmentally.
- Transfer of £54,000 grants
to the Security Intelligence Agencies for expansion and capability.
11. No FCO activities are expected to be reduced
as a result of the above transfers. Transfers between government
departments such as these are a routine occurrence and are therefore
incorporated in the normal budgeting process.
Table 1
DETAILED EXPLANATION OF CHANGES
| End year flexibility
| |
| | 15.000
| RfR1 | Section A1 administration EYF for FCO modernisation
|
| | 15.000
| Resource Total Change to DEL
|
| Transfers from capital to administration
|
| | 25.000
| Section A1 increase from Section A7 to cover exchange rate pressures
|
| | 25.000
| Resource Total Change to DEL
|
| | -25.000
| Capital Total Change to DEL
|
| Transfers between sections within the Estimate
|
| | 6.080
| RfR1 | DEL Neutral transfer to Section B2 from Section A2 for Grant-in-Aid for the BBCWS
|
| 4.720
| RfR1 | DEL Neutral transfer to Section C2 from Section A2 for Grant-in-Aid for the British Council
|
| 71.570
| RfR2 | DEL Neutral transfer to Section A2 from Section A1 for conflict prevention to peacekeeping switch
|
| | 0.000
| Resource Total Change to DEL
|
| Transfers from Other Government Departments
|
| | 1.850
| RfR1 | Section A1 administration transfer from DfE for Papal visit
|
| | 1.850
| RfR1 | Section A1 administration transfer from DfID for Papal visit
|
| | 1.850
| RfR1 | Section A1 administration transfer from DECC for Papal visit
|
| | 1.850
| RfR1 | Section A1 administration transfer from DEFRA for Papal visit
|
| |
| |
|
| 1.850
| RfR1 | Section A1 administration transfer from DCLG for Papal visit
|
| 0.100
| RfR1 | Section A2 programme transfer from DFID for Strategic and Bilateral Fund in Kanshasa
|
| 0.180
| RfR1 | Section A1 administration transfer from DFID for Chernobyl gratis visa operation
|
| |
| |
|
| 40.000
| RfR1 | Section A2 programme transfer from DFID for British Council Official Development Assistance
|
| 0.200
| RfR1 | Section A2 programme transfer from DFID for Tanzania Police Training Project
|
| | 16.467
| RfR2 | Section A3 grants transfer from DFID for Conflict Prevention and Peacekeeping
|
| | 66.197
| Resource Total Change to DEL
|
| Transfers to Other Government Departments
|
| | -0.054
| RfR2 | Section A3 grants transfer to the Security and Intelligence Agencies for expansion and capability
|
| | -0.265
| RfR1 | Section A7 capital transfer to DFID as contribution towards building a new office in Juba, Sudan
|
| |
| |
| -0.265
| Capital Total Change to DEL
|
| | -0.054
| Resource Total Change to DEL
|
| Transfers from Central Funds
|
| | 15.000
| RfR1 | Section A2 DEL Reserve claim for modernisation of FCO Corporate Services
|
| | 15.000
| Resource Total Change to DEL
|
| Transfers from non-voted Departmental Unallocated Provision
|
| | 17.000
| RfR1 | Section A1 take-up administration DUP to offset adverse exchange rate movements
|
| Other budget neutral changes
|
| 7.000
| RfR1 | An increase in capital fully offset by an increase in non-operating appropriations-in-aid
|
| 0.000
| Resource Total Change to DEL
|
| | 121.143
| NET TOTAL CHANGE TO RESOURCE DEL
|
| | -25.265 | NET TOTAL CHANGE TO CAPITAL DEL
|
DEPARTMENTAL EXPENDITURE
LIMIT (DEL) & ADMINISTRATION
BUDGETS
12. The tables below show a comparison of the 2010-11 DEL
(Table 2 and 2a) and Administration (Table 3) budgets with the
2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 outturn,
and the forecast for 2010-11.
13. Table 2a shows outturn on the definition of DEL used in
the year concerned in order to be consistent with published Departmental
Expenditure Limits. They do not therefore correspond to the outturns
in Table 2 that are on a consistent basis year on year, including
reclassification by Treasury of expenditure across all years of
the Public Expenditure cycle.
Table 2
DEL COMPARISON
| 2004-05 | 2005-06
| 2006-07 | 2007-08
| 2008-09 | 2009-10
| 2010-11 |
| Actual | Actual
| Actual | Actual
| Actual | Actual
| Forecast |
| Resource DEL 1,2 | 1,680.411
| 1,815.302 | 1,770.997 | 1,808.411
| 2,027.427 | 2,126.806 | 2,153.381
|
| Capital DEL | 112.517 | 133.340
| 160.786 | 227.792 | 226.803
| 200.732 | 168.695 |
| Less Depreciation 1,3 |
67.156 | 108.725 |
81.555 | 73.220 |
81.684 | 100.980 |
99.050 |
| Total | 1,725.772 | 1,839.917
| 1,850.228 | 1,962.983 | 2,172.546
| 2,226.558 | 2,223.026 |
1Figures for all years reflect the reclassification
of impairment expenditure from DEL into AME.
2 Resource DEL figures for 2010-11 are understated
because they do not include all of the conflict prevention expenditure,
which will be transferred at the time of the relevant Main and
Supplementary Estimates. addition 2005-06 included expenditure
on a number of one off items (Tsunami expenditure, Efficiency
Challenge Fund & G8 & EU presidencies).
3 Depreciation, which forms part of Resource DEL, is
excluded from the total DEL, since Capital DEL includes the purchase
cost of capital assets. To add on the depreciation of those assets
would double count their cost.
Table 2a
PREVIOUS YEARS' EXPENDITURE AGAINST DEPARTMENTAL
EXPENDITURE LIMITS £M
| Year | Voted
| Non-voted | Total DEL
| Outturn1 | Variance
|
| Resource | |
| | | |
| 2004-05 | 1,607.192 | 209.690
| 1,816.882 | 1,736.188 | 80.694
|
| 2005-06 | 1,999.224 | 6.713
| 2,005.937 | 1,916.190 | 89.747
|
| 2006-07 | 1,924.913 | 44.213
| 1,969.126 | 1,852.024 | 117.102
|
| 2007-08 | 1,950.523 | 5.862
| 1,956.385 | 1,895.961 | 60.424
|
| 2008-09 | 2,074.701 | 3.000
| 2,077.701 | 2085.310 | -7.609
|
| Final outturn 2009-10 | 2,237.987
| 3,000 | 2,240.987 | 2,224.375
| 16.612 |
| | | |
| | |
| Capital | |
| | | |
| 2004-05 | 101.533 | 1.000
| 102.533 | 71.236 | 31.297
|
| 2005-06 | 135.697 | 1.000
| 136.697 | 92.959 | 43.738
|
| 2006-07 | 157.779 | 1.000
| 158.779 | 160.747 | -1.968
|
| 2007-08 | 243.567 | -
| 243.567 | 227.973 | 15.594
|
| 2008-09 | 216.060 | -
| 216.060 | 229.080 | -13.020
|
| Final outturn 2009-10 | 203.310
| - | 203.310 | 199.638
| 3,672 |
1 Outturn in is based on the definition of DEL in the relevant
year and so is not consistent with the outturn in Table 2 that
includes subsequent classification changes effective across all
years.
Table 3
ADMINISTRATION BUDGET COMPARISON £M
| 2004-05 | 2005-06
| 2006-07 | 2007-08
| 2008-09 | 2009-10
| 2010-11 |
| Actual | Actual
| Actual | Actual
| Actual | Forecast
| Plans |
| Administration budget | 402.676
| 388.191 | 382.439 | 356.319
| 383.492 | 431.768 | 484.698
|
1Figures for all years reflect the reclassification
of impairment expenditure from DEL into AME.
DEPARTMENTAL UNALLOCATED
PROVISION (DUP) 2010-11
14. £17,000,000 FCO provision has been allocated in the
Winter Supplementary Estimate leaving a balance of £15,000,000
to be taken up in the spring.
Table 4
2010-11 DEPARTMENTAL UNALLOCATED PROVISION
| Resource | Capital
|
| RfR1 DUP to offset adverse exchange rate movements
| £15.0m | £0.0m |
| Total | £15.0m | £0.0m
|
END YEAR
FLEXIBILITY (EYF)
15. The Public Expenditure Outturn White Paper published in
July 2010 showed a total figure of £110.017 million for carry
forward of under spend into 2010-11 under the DEL EYF scheme.
16. We have taken up £15,000,000 DEL administration costs
EYF in respect of FCO core restructuring.
17. In the Spring Supplementary Estimate we may take up resource
EYF for RfR2 Conflict Prevention.
Table 5
ACCUMULATION OF EYF £M
| Administration |
Programme | Total Resource
| Of which
non-cash | Capital
| Total |
| Total FCO EYF Entitlement in Public Expenditure Provisional Outturn July 2010 (table 6—Cm 7911)
| 71.846 | 34.779 | 106.625
| 5.623 | 3.392 | 110.017
|
| EYF drawn down in Winter Supplementary |
15.000 | - | 15.000
| - | - | 15.000
|
| BALANCE OF ACCUMULATED END YEAR FLEXIBILITY GOING INTO 2010-11
| 56.846 | 34.779 | 91.625
| 5.623 | 3.392 | 95.017
|
Keith Luck
Finance Director General
15 November 2010
|
