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Departmental Expenditure (Department for Transport)

Volume 467: debated on Thursday 15 November 2007

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Transport departmental expenditure limit (DEL) for 2007-08 will be increased by £197,841,000 from £12,907,737,000 to £13,105,578,000 and the administration budget will be increased by £30,087,000 from £259,297,000 to £289,384,000.

Within the DEL change, the impact on resources and capital, are as set out in the following table:

£'000

Change in DEL

New DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource:

198,788

22,305

6,451,490

473,987

6,925,477

Of Which:

Administration

30,711

-624

285,181

4,203

289,384

Near cash in RDEL

204,388

16,705

5,790,429

638,402

6,428,831

Capital

247,829

-264,829

5,437,836

1,105,542

6,543,378

LESS Depreciation1

-1,000

-5,252

-357,709

-5,568

-363,277

Total

445,617

-247,776

11,531,617

1,573,961

13,105,578

1Depreciation, 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.

Resource Change: Administration (total increase of £30,087,000)

Voted: total increase of £30,711,000.

RfRl

(i) Reclassification of certain consultancies from programme to administration (£38,288,000);

(ii) Near cash transfer from the Cabinet Office for the Department's share of the Parliamentary Counsel Office costs (£292,000);

(iii) Partially offset by reclassification of front line activities from administration to programme for transport security (£7,523,000 near cash and £346,000 non cash).

Non Voted: total decrease of £624,000.

(i) Near cash transfer from administration non voted provision to the Department for Communities and Local Government as a contribution towards Government Offices' voluntary severance costs (£624,000).

Resource Change: Programme (total increase of £191,006,000)

Voted: total increase of £168,077,000

(i) Take up of £ 178,272,000 near cash end year flexibility covering:

a) rail franchising costs (£136,858,000);

b) Transport for London (£10,030,000);

c) support for the introduction of a national concessionary fares scheme (£20,384,000); and

d) lower than expected Vehicle Excise Duty enforcement receipts (£11,000,000).

(ii) Near cash increase of £15,000,000 to reflect the reclassification of Vehicle Excise Duty enforcement; receipts following the end of the netting off scheme from 2007-08;

(iii) A net transfer from non-voted resource provision of £14,171,000 comprising:

a) near cash cover for lower than expected Vehicle Excise Duty enforcement receipts (£8,150,000);

b) additional near cash enforcement work including tackling identity fraud, targeted roadworthiness roadside checks and enforcing compliance with Driver hours directive (£3,800,000);

c) an increase in non-cash provision for the Driving Standards Agency trading fund to cover increased cost of capital charges (£600,000);

d) an increase in non-cash provision for the Vehicle and Operator Services Agency trading fund to meet increased cost of capital charges (£1,700,000);

e) an increase in near cash provision for rail franchising costs (£163,000);

f) a near cash transfer of £7,900,000 to rail franchising from a reduction in utilisation of rail provision fully offset by an equivalent non cash transfer; all partially offset by:

g) a near cash transfer to non-voted provision for the Rail Passenger Council (£242,000).

(iv) A transfer from administration to reflect reclassification of front line activities from administration to programme for transport security (£7,869,000);

(v) Partially offset by:

a) a near cash transfer to administration to reflect reclassification of certain consultancies (£38,288,000); and

b) a near cash transfer to the Scottish Executive for rail services (£8,947,000).

Non voted: total increase of £22,929,000

(i) Take up of £37,100,000 near cash end year flexibility to replace non-voted provision used to ensure that the Main Estimates correctly reflected the level of GLA Transport Grant; partially offset by

(ii) A net transfer to voted resource provision of £ 14,171,000.

Capital change (total decrease of £17,000,000)

Voted: total increase of £247,829,000

(i) A transfer from non-voted capital provision of £264,829,000 comprising;

(a) a transfer from departmental unallocated provision to Network Rail capital grants (£168,000,000);

(b) a transfer from London and Continental Railways to Network Rail capital grants (£66,167,000);

(c) a transfer from British Transport Police to Network Rail capital grants (£2,500,000); and

(d) a reclassification from credit approvals to capital grant for local authorities' de-trunking (£35,362,000); partially offset by

(e) a transfer from the Driver and Vehicle Operators loan pool to investment for ongoing Driver and Vehicle Licensing Agency projects (£7,200,000);

(ii) A transfer to the Scottish Executive for rail services (£17,000,000).

Non-voted: total decrease of £264,829,000 reflecting a net transfer to voted capital provision.