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Departmental Funding

Volume 164: debated on Monday 18 December 1989

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To ask the Chancellor of the Exchequer if he has any plans to limit (a) the total sum or (b) the proportion of the sums originally voted which may be carried forward by a Deaprtment from one financial year to another as a result of (i) capital or (ii) running costs underspends; and if he will make a statement.

The end-year flexibility scheme for central Government capital expenditure enables Departments to carry forward underspends of up to 5 per cent. of their eligible provision plus any carryover entitlement from the previous year not taken up in a Supplementary Estimate, or £2 million—whichever is the greater. The end-year flexibility scheme for running costs enables qualifying Departments to carry forward underspends of up to ·5 per cent. of their eligible running costs provision or £50,000—whichever is the greater.