To ask the Chancellor of the Exchequer what steps he has taken to provide greater flexibility for Government Departments, with reference to the use of capital expenditure and operational expenditure spending budgets. (202536)

The Government set separate capital and resource budgets for Departments at spending reviews. Separate resource and capital budgets support the Government's fiscal rules and ensure sustained investment in priorities, including infrastructure, schools and hospitals. The Government have introduced firm three-year spending plans and Departments have flexibility to focus resources within budget limits, subject to the rules set out in Managing Public Money and the Consolidated Budgeting Guidance 2008-09 (please see the links to these documents as follows). The Government have also introduced End Year Flexibility, which enables flexibility across financial years.

Consolidated Budgeting Guidance 2008-09:

http://www.hm-treasury.gov.uk/documents/public_spending_reporting/budgeting_classification/psr_bc_consolidated_budgeting.cfm.

Managing Public Money:

http://www.hmtreasury.gov.uk/documents/public_spending_reporting/governance_risk/psr_managingpublicmoney_index.cfm