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Departmental Expenditure Limits

Volume 454: debated on Wednesday 6 December 2006

To ask the Secretary of State for Defence (1) why he intends to increase expenditure within Departmental Expenditure Limits for subheads (a) Request for Resources 1-F and (b) Request for Resources 1-J; and if he will make a statement; (105965)

(2) why he intends to reduce resource expenditure within Departmental Expenditure Limits for subheads: (a) Request for Resources 1-A; (b) Request for Resources 1-B; (c) Request for Resources 1-C; (d) Request for Resources 1-D; Request for Resources 1-E; (f) Request for Resources 1-G; (g) Request for Resources 1-H; (h) Request for Resources 1-I; Request for Resources 1-K; and (j) Request for Resources 1-L; and if he will make a statement.

The majority of these changes to the Departmental Expenditure Limit relate to the Department’s fixed asset management project, which is part of the Defence Resource Management Programme to ‘simplify and improve’ financial processes across the Department. The changes reflect the centralisation of fixed asset management under four single balance sheet owners (SBSOs) Defence Estates (DE), Defence Logistics Organisation (DLO), Defence Procurement Agency (DPA) and the Defence Communications Services Agency (DCSA), which is part of the DLO. This resulted in net increases to the Defence Logistics Organisation and Defence Estates, offset by reductions in the other TLBs. There will be further adjustments in the Spring Supplementary Estimates.

Other changes have been made to Top Level Budget Holders (TLB) allocations of Resource funding to bring the allocations into line with responsibility transfers between TLBs, and other adjustments to reflect the Defence outputs required since Main Estimates.