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Supplementary Estimates (MOD)

Volume 467: debated on Thursday 15 November 2007

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Ministry of Defence Departmental Expenditure Limits (DEL) will be increased by £2,033,379 from £33,561,172 to £35,594,551,000. 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

1,889,379

-

34,437,544

283,088

34,720,632

Near-Cash in RDEL

1,889,379

440,000

23,819,675

480,943

24,300,618

Capital

144,000

-

7,691,626

744

7,692,370

Depreciation1

-

-

-6,618,451

-200,000

-6,818,451

Total

2,033,379

-

35,510,719

83,832

35,594,551

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 changes to the resource and capital elements of the DEL arise from:

the take up of normal Resource End Year Flexibility of £21,000,000 and Capital Resource End Year Flexibility of £65,000,000;

resource transfers in from the Department for Environment, Food and Rural Affairs (DEFRA) of £4,863,000 as a contribution to the National Meteorological Programme and Severe Weather Warning Service, £200,000 from the Cabinet Office in respect of future funding arrangements for the expansion of the Parliamentary Counsel Office, and £42,525,000 from the Security & Intelligence Services Agency in respect of support service funding for GCHQ;

a resource transfer out of £149,000 to the Department of Culture, Media and Sport as a contribution to the Leeds Armouries Museum Pattern Room staffing costs, and a resource transfer of £4,000,000 out to the Department of Business, Enterprise and Regulatory Reform as a contribution to the Global partnership against the spread of weapons and materials of Mass Destruction;

to use £55,000,000 of additional income that will be paid to the Consolidated Fund with a corresponding increase in Direct RDEL available to the Department;

to increase Request for Resources 2 by £1,315,000,000 Resource near cash DEL and £604,000,000 Capital DEL to reflect the costs of peace-keeping in Iraq and Afghanistan;

to transfer £70,000,000 from Voted Capital DEL to Non-Voted Near Cash Resource DEL to cover planned cash release of provision payments;

to transfer £455,000,000 Capital resource to Direct Resource within RfRl relating to Single Use Military Equipment (SUME) flexibility;

to recognise a Grant in Aid payment to the Royal Irish Benevolent Fund of £60,000 by increasing Non-Budget expenditure and reducing near cash resource DEL.

The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £2,158,439,000.