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Inland Revenue: Changes to DEL and Administration Costs Limits

The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey): My right honourable friend the Paymaster General (Dawn Primarolo) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary Supplementary Estimate, the Inland Revenue departmental expenditure limit will be increased by £133,643,000 from £3,358,210,000 to £3,491,853,000 and the administration costs limit will be increased by £94,530,000 from £3,075,757,000 to £3,170,287,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
£'0000s


New DEL
ChangeVotedNon-votedTotal
Resource94,5302,846,006331,4183,177,424
Capital39,113314,429-314,429
Depreciation*-27,813-180,408--180,408
Total105,8302,980,027331,4183,311,445




*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 increases in gross administration costs, mainly, £61,544,000 met from the central reserve to enable the GOGGS East building to be brought on to the department's balance sheet. A further increase of £29,000,000 and £3,400,000, which is also being met from
 
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the central reserve for continued work on Child Trust Fund and for Team Bonus payments, respectively. HM Treasury is to transfer £99,000, for the cost of capital in respect of the GOGGS East building. Cabinet Office will be transferring £1,790,000, due to the change in funding arrangements for the Parliamentary Counsel Office; and, Department for Work and Pensions is transferring £1,661,000, for child benefit work on the Payment Modernisation Programme and the Child Benefit Cheque Payment Service. These transfers are partially offset by a transfer of £2,964,000 to HM Treasury to meet the costs of the transfer of tax policy work for the first half of the financial year.

The change in the capital element of the DEL arises from an increase of £97,477,000 from the central reserve to enable the GOGGS East building to be brought onto the department's balance sheet. This increase is partially offset by an accounting adjustment of £58,364,000, in relation to the assets transferred to CapGemini, the department's new IT service provider.

Government Actuary's Department: Changes to DEL and Administration Costs Limits

Lord McIntosh of Haringey: My honourable friend the Financial Secretary (Mr Stephen Timms) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary Supplementary Estimate, the Government Actuary's departmental expenditure limit will be increased by £130,000 from £1,309,000 to £1,439,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
New DEL
ChangeVotedNon-votedTotal
Resource01,071-1,071
Capital1303680368
Depreciation*0-416--416
Total1301,02301,023




* 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 capital element of the DEL arises from the partial draw down of capital end-year flexibility (EYF) of £130,000. This is required to meet the costs arising from the replacement of pension's valuation software and the implementation of a document management system.

HM Treasury: Changes to DEL and Administration Costs Limits

Lord McIntosh of Haringey: My right honourable friend the Paymaster General (Dawn Primarolo) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary Supplementary Estimate, HM Treasury DEL will be increased by £6,383,000 from £251,764,000 to
 
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£258,147,000 and the administration costs limits will be increased by £7,883,000 from £152,509,000 to £160,392,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
New DEL
ChangeVotednon-votedTotal
Resource7,883,000212,597,00037,975,000250,572,000
Capital-1,500,0007,575,00007,575,000
Depreciation*-8,638,000-16,292,0000-16,292,000
Total-2,255,000203,880,00037,975,000241,855,000




* 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:

An increase in total Treasury administrative costs of £7,883,000 resulting from:

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The change in the capital element of the DEL arises from:

1 The Whitehall systems are backup heating and electricity power systems, previously operated and accounted for by OGC. Responsibility for them is being transferred to OGCbuying.solutions. OGC is surrendering its funding for cost of capital charges. OGCbuying.solutions is paying £11.55 million for the assets, £3 million in cash and £8.55 million via a loan from OGC.
 
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