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Departmental Expenditure (Food Standards Agency)

Volume 467: debated on Thursday 15 November 2007

Subject to the necessary Supplementary Estimate, the Food Standards Agency's element of the Departmental Expenditure Limit (DEL) will be increased by £9,800,000 from £144,539,000 to £154,339,000 and the Administration Cost Limit will be increased by £4,100,000 from £52,415,000 to £56,515,000. The net cash requirement will also increase by £18,800,000 from £141,731,000 to £160,531,000 as a result of the £9,800,000 change in net total resources and additional £9,000,000 cash required to fund an expected decrease in creditors. The impact on resource and capital are set out in the following table.

New DEL

Change

Voted

Non-Voted

Total

Food Standards Agency

£ million

£ million

£ million

£ million

Resources

8.500

152.392

0

152.392

Capital

1.300

1.947

0

1.947

Total Food Standards Agency DEL

9.800

154.339

0

154.339

Depreciation*

0

-2.004

0

-2.004

Total Food Standards Agency spending (after adjustment)

9.800

152.335

0

152.335

* 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 increase in net total resources and capital is by a take up of End Year Flexibility (EYF) of £9,800,000. Of this £4,100,000 is an increase in near cash administration costs, which will be used to fund restructuring of the Food Standards Agency's headquarters operations and related accommodation and support services costs. Near cash programme costs increase by £4,400,000 to assist with the restructuring of the Meat Hygiene Service. The balance of £1,300,000 is an increase in capital and will be used to fund an increased investment in IT hardware and infrastructure. All of these measures will help to deliver the efficiency savings required as part of the CSR settlement.

As a result of the change to net total resources, capital and the additional £9,000,000 cash required to fund the decrease in creditors, the net cash requirement will increase by £18,800,000.

RFR1

Following the machinery of government changes a transfer of £19,932,000 from the BERR, a net receipt transfer of £456,700,000 from the DCSF.

A technical movement of £281,970,000 from non-voted capital DEL to offset original receipt for Science, Research Innovation Fund, included as part of the DCSF MOG transfers.

RFR2

Following the machinery of government changes a transfer of £299,000,000 from the BERR.

A technical movement of £281,970,000 to non-voted capital DEL to the Higher Education Funding Council for England (HEFCE) for the Science, Research Innovation Fund.

A transfer of £32,391,000 from BERR voted capital for Science Research Investment Fund.

A drawdown of EYF of £11,969,000 for capital Science and Research Investment Fund.

Non-voted Capital DEL

The £2,064,140,000 increase in the non-voted element of capital DEL arises from:

Following the machinery of government changes a transfer of £395,569,000 from the BERR, a transfer of £1,622,962,000 from the DCSF.

A transfer of £45,609,000 from the BERR for capital provision associated with the Research councils.

Administration Cost Budget

RfRl

Following the machinery of government changes a transfer of £14,690,000 from the BERR, a transfer of £43,450,000 from the DCSF.

A classification of £5,200,000 from programme provision to administration in relation to consultancy costs.

RfR2

Following the machinery of government changes a transfer of £8,500,000 from the BERR.