The Government as a whole incur an interest cost for borrowing to finance investments by Departments. To ensure that the full cost of services is reflected in departmental accounts and budgets, this interest cost is devolved to Departments as a cost of capital charge. This is a non-cash cost and thus there is no associated income or cashflow.
The following table, based on provisional outturn, sets out current expenditure and cost of capital charges within each relevant departmental expenditure limit for 2005-06:
£ million Department Current expenditure of which: Cost of capital charges Agriculture and Rural Development 225.0 14.5 Culture, Arts and Leisure 96.0 2.6 Education 1,568.8 -02 Employment and Learning 595.0 19.6 Enterprise, Trade and Investment 204.1 0.2 Finance and Personnel 185.0 10.7 Health, Social Services and Public Safety 3,312.0 38.3 Environment 124.5 0.8 Regional Development 349.0 -1.2 Social Development 457.5 2.0 Office of the First and Deputy First Minister 57.7 0.3