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Departmental Accountancy

Volume 470: debated on Wednesday 23 January 2008

To ask the Secretary of State for Health what items of his Department’s (a) revenue and (b) expenditure are uprated using (i) the consumer prices index, (ii) the retail prices index and (iii) other measures of inflation. (179936)

The levels of expenditure and income for the Department are set as part of the Comprehensive Spending Review.

For Business Planning purposes, the Department normally uses the relevant Gross Domestic Product Deflators as provided by HM Treasury to estimate the future pay bill. For non-pay costs and income, business managers are expected to use specialist/local knowledge and judgment to assess future costs and this may include reference to published indices on a case-by-case basis.