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Winter Supplementary Estimates 2006-07

Volume 453: debated on Tuesday 21 November 2006

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Ministry of Defence Departmental Expenditure Limits (DEL) will be increased by £1,592,272,000 from £32,018,905,000 to £33,611,177,000. Within the DEL change, the impact on Resources and Capital are as set out in the following table:

£000

Change

New DEL

Voted

Non- Voted

Voted

Non- voted

Total

Resource

1,160,272

33,002,967

800,550

33,803,517

Near-Cash in RDEL

1,260,272

22,447,855

318,984

22,766,839

Capital

432,000

7,357,916

744

7,358,660

Depreciation1

-7,081,000

-470,000

-7,551,000

Total

1,592,272

33,279,883

331,294

33,611,177

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:

the take up of end year flexibility of £120,000,000 Resource DEL Direct (near cash) and £72,000,000 Capital DEL;

a transfer in of £72,000 from the Cabinet Office in respect of this year's funding arrangements for the expansion of the Parliamentary Counsel Office;

a transfer in of £200,000 from the DTI as contribution to the Principal Non-industrial Superannuation Scheme (PNISS) also known as the United Kingdom Atomic Energy Authority (UKAEA) pension scheme;

to increase Request for Resources 2 by £1,040,000,000 Resource DEL and £360,000,000 Capital DEL to reflect the costs of peace-keeping in Iraq and Afghanistan;

to increase Request for Resources 3 by £7,210,000 for War Pensions Benefits Costs and £500,000 for War Pensions Benefits Programme Costs - Far Eastern Prisoners of War, to reflect the latest forecast outturn.

In addition there is a transfer from Resource DEL Indirect (non-cash) to Resource DEL Direct (near cash) of £100,000,000, mainly for fuel costs.

The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £1,699,982,000.