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Treasury: DEL and Administration Budget Changes

Lord Davies of Oldham: My honourable friend the Exchequer Secretary to the Treasury (Angela Eagle) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary Supplementary Estimate, HM Treasury's total DEL will be reduced by £73,000 from £229,448,000 to £229,375,000 and the administration budget will be reduced by £2,670,000 from £173,851,000 to £171,181,000. The impact on resources and capital is set out in the following table:

	Change		New DEL
	Voted	Non-voted	Voted	Non-voted	Total
Resource	6,572,000	-6,572,000	210,547,000	21,240,00	231,787,000
of which:
Administration budget*	3,902,000	-6,572,000	170,331,000	850,000	171,181,000
Near cash in RDEL*	6,231,000	-6,572,000	198,385,000	32,418,00	230,803,000
Capital**		-	7,200,000	-	7,200,000
Less: Depreciation***	-73,000	-	-9,612,000	-	-9,612,000
Total	6,499,000	-6,572,000	208,135,000	21,240,00	229,375,000
* The total of “Administration budget” and “Near cash in Resource DEL” figures may well be greater than total Resource DEL, due to definitions overlapping. ** 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 resource and capital DELs remain unchanged while total DEL is reduced by £73,000 following an increase in depreciation. The reduction in the administration budget arises from the reclassification of administration budget spending to other current to finance increased other current spending by HM Treasury to reflect a reduction of £390,000 in appropriations-in-aid with the Office of Government Commerce to fund the remaining costs associated with the OGC's voluntary early retirement and severance scheme costs arising from the Transforming Government Procurement review.

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