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Department of Health and Food Standards Agency: Departmental Expenditure Limits

The Parliamentary Under-Secretary of State, Department of Health (Lord Warner): My right honourable friend the Secretary of State for Health has made the following Written Ministerial Statement today.

Subject to the necessary supplementary estimate, the Department of Health's element of the departmental expenditure limit (DEL) will be increased by £262,454,000 from £65,583,213,000 to £65,845,667,000 and the administration cost limit will decrease by £4,042,000 from £297,448,000 to £293,406,000. The overall DEL including the Food Standards Agency will increase by the same amount, £262,454,000, from £65,722,240,000 to £65,984,694,000. The impact on resource and capital are set out in the following table.

New DEL
ChangeVotedNon-VotedTotal
£ million£ million£ million£ million
Department of Health
Resource DEL95.34863,334.252-310.12763,024.125
Capital DEL167.106653.6112,167.9312,821.542
Total Department of Health DEL262.45463,987.8631,857.80465,845.667
Depreciation10.078-352.570-44.369-396.939
Total Department of Health spending (after adjustment)262.53263,635.2931,813.43565,448.728
Food Standards Agency
Resources0136.3680136.368
Capital02.65902.659
Total Food Standards Agency DEL0139.0270139.027
Depreciation10-2.0040-2.004
Total Food Standards Agency spending (after adjustment)0137.0230137.023

1 Depreciation, which forms part of resource DEL, is excluded from the total DEL since the capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The change in the DEL arises from the take-up of end-year flexibility £260,978,000 (£1,572,000 administration costs) for capital, revenue and administration budgets as set out in Table 6 of the Public Expenditure 2002–03 Provisional Outturn White Paper Cm 5884 published in July 2003. A net transfer from the Home Office of £1,980,000 (£50,000 administration costs) mainly for training costs at special hospitals, drugs misuse pilot projects and voluntary sector care projects helping to increase volunteers in intermediate care; from the Department of Trade and Industry £1,070,000 (£70,000 administration costs) for contributions towards the human genetics commission and to support development of genetics knowledge parks to increase understanding into a range of genetic-based issues

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including research; from the Department for Work and Pensions £10,343,000 for the NHS low-income scheme and a contribution to the care direct budget; to the Scotland Executive £88,000 for their share of the reimbursement from manufacturers 3M associated with the ending of a hip replacement programme; a net transfer to the Department for Education and Skills £12,544,000 (£-1,733,000 administration costs) mainly for capital projects, machinery of government changes and NHS diploma students offset by contributions towards teenage pregnancy, children's trusts and communications budgets; a net transfer from the DHSS Northern Ireland £735,000 for out-of-area treatments offset by a contribution to CJD care fund; to the National Assembly for Wales £20,000 (administration costs) for prison healthcare.

The administration cost limit has reduced by £4,042,000 from £297,448,000 to £293,406,000. In addition to the changes detailed above there is a decrease of £3,981,000 for transfers to programme budgets mainly for capitalisation of software developments.

Cabinet Office: Departmental Expenditure Limits

Lord Bassam of Brighton: Subject to parliamentary approval of any necessary supplementary estimate, the Cabinet Office DEL will be increased by £2,043,000 from £311,289,000 to £313,332,000 and the gross administration costs limits will be increased by £2,644,000 from £223,733,000 to £226,377,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL
£'000ChangeVotedNon-votedTotal
Resource1,182277,2970277,297
Capital86186,189086,189
Depreciation10-50,1540-50,154
Total2,043313,3320313,332

1 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 the DEL arises from additions from the DEL reserve of £3,500,000 for human resources restructuring, draw down of £140,000 end-year flexibility on Invest to Save funding provided to the Centre for Management and Policy Studies and net transfers to other government departments of £2,458,000.

The change in the capital element of the DEL arises from transfers from other departments of £861,000.

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Nimrod MRA4

Baroness Crawley: My right honourable friend the Secretary of State for Defence (Mr Geoffrey Hoon) has made the following Written Ministerial Statement.

We announced, in February last year that agreement had been reached with Bae Systems on the way ahead for the Nimrod MRA4 programme and undertook to report significant developments to the House. We are pleased to announce that, following detailed negotiations, a contract amendment, formally

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embodying the agreement, was signed on 23 February 2004.

Signature of the contract amendment demonstrates the positive relationship between the MoD and the company and the joint commitment to deliver this important military capability within the terms of our agreement. This contract amendment, however, although important, is not an end in itself. The work over the past year in putting the agreement into effect has set the programme on a much sounder footing for the future. Risks and challenges remain, however, and we are working hard with the company to assure the long-term stability of the programme.


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