Letter from the Secretary of State to
the Chair of the Committee dated 26 July 2010
Structure of the 2011-12 Department for Transport
Main Estimates
As part of our reform programme my Department is
currently updating its financial management processes to drive
improved efficiency in the back office and throughout the business.
Aligning the Department's Main Estimate with some of these changes
would, I believe, enhance transparency and support your Committee
in its scrutiny role.
The essential change is to clarify Estimate lines,
as far as possible, to align with the Department's five priority
areas:
(a) Roads and Driving
(b) Rail (including HS2)
(c) Smarter Travel
(d) London
(e) Aviation, Maritime, Security and Safety
There would also be further sections for the central
functions of the Department such as central administration; science,
research & support functions; and any provision for risks.
The proposed changes to the estimate structure are
separate from, but complementary to, the principles of Treasury's
Alignment (or "Clear Line of Sight"W) Project. That
project seeks to simplify government's financial reporting to
Parliament by better aligning rules for departmental budgets,
Estimates and resource accounts.
Attached at Annex A is a draft of the proposed new
Estimate structure that also incorporates requirements under the
Alignment project. For comparison, a copy of how the Department's
Estimate would look under the Alignment project changes but without
revising the reporting lines is attached at Annex B.
The draft proposed structure may, of course, have
to be amended further to reflect any changes arising from the
completion of the Spending Review. Once the structure is finalised
it will be used on a consistent basis throughout the Spending
Review period to ensure that budgeting and spending patterns can
be monitored throughout the period.
My Department has consulted with HM Treasury which
supports the proposals. There have also been consultations with
the Committee Clerk and the House of Commons Scrutiny Unit which
have assisted in developing the proposals.
I hope you and the Committee find the proposal acceptable.
If you have any questions or concerns about the proposed revisions
to the Estimate I would be happy to look into these to ensure
that the structure maximises the contribution transparency and
accountability can make to driving efficiency and improved financial
management.
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