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Departmental Expenditure Limits

Volume 487: debated on Thursday 12 February 2009

Subject to Parliamentary approval of the spring supplementary estimate, HM Treasury’s resource DEL will be increased by £73,000 from £221,551,000 to £221,624,000 and the Administration budget will be increased by £118,000 from £169,425,000 to £169,543,000 with no net change in the capital DEL. The impact on resources and the administration budget is set out in the following table:

ChangeNew DEL

Voted

Non- voted

Voted

Non-voted

Total

Resource

6,386,000

-6,313,000

201,032,000

20,592,000

221,624,000

of which:

Administration budget*

4,431,000

-4,313,000

169,543,000

-

169,543,000

Near cash in RDEL*

6,373,000

-6,313,000

189,197,000

31,492,000

220,689,000

Capital**

700

-700

5,500,000

1,521,000

7,021,000

Less: Depreciation***

-

-

-9,190,000

-

-9,190,000

Total

7,086,000

-7,013,000

197,342,000

22,113,000

219,455,000

*The total of 'Administration budget' and 'Near cash in Resource DEL' figures may well be greater than total Resource DEL, due to definitions overlapping.

** Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.

*** 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 net increase in resource DEL of £73,000 is the net effect of the following:

A transfer to the Department for Innovation, Universities and Skills of £17,000 administration costs as a contribution towards the costs of the Skills Strategy.

Transfers from the Departments of Health and Culture, Media and Sport of £45,000 near cash administration costs each to the Office of Government Commerce towards the costs of the Centre of Expertise in Sustainable Procurement.

The net increase in the administration costs budget is £118,000 comprising the administration costs changes mentioned in the preceding paragraphs, plus the reclassification of a programme costs transfer from the UK Statistics Authority received in the winter Supplementary Estimates round to administration costs of £45,000.

There is a reduction in non-voted Resource DEL due to the draw down of Departmental Unallocated Provision (DUP) comprising £4,313,000 administration costs and £2,000,000 programme costs to offset increased voted spending. There is also a reduction in non-voted capital DEL due to the draw down of DUP of £700,000.

Subject to Parliamentary approval of any necessary Supplementary Estimate, National Savings and Investments DEL will be increased by £18,900,000 to £183,547,000. Within DEL change, the impact on resources and capital are set out in the following table:

ChangeNew Del

Voted

Non-voted

Voted

Non-Voted

Total

Resource Del:

18,900

185,199

185,199

Of which:

Administration budget:

18,900

185,199

185,199

Near cash in RDEL:

18,900

180,592

180,592

Capital

1,438

1,438

Depreciation*

-3,090

-3,090

Total

18,900

183,547

183,547

* 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 change in the resource element of DEL arises from:

A drawdown of £ 6,900,000 from the Modernisation Fund for the upgrade of NS&l’s core IT infrastructure.

The take up of DEL End Year Flexibility (EYF) of £12,000,000—near cash— to cover payments related to increased sales volumes.

The change in the administration budget arises from the Modernisation Fund draw down.

Subject to parliamentary approval of the Supplementary Estimate, the HM Revenue & Customs total DEL will be increased by £75,248,000 from £4,539,797,000 to £4,615,045,000. Within the total DEL change, the impact on resources and capital are as set out in the following table:

£'000ChangeNew DELVotedNon-VotedVotedNon-votedTotalResource DEL62,248—4,144,792347,7394,492,531Of which:Administration Budget 162,248—4,392,050—4,392,050Near-cash in RDEL162,248—3,804,910 381,8874,186,797Capital216,648-3,648301,514—301,514Less Depreciation 3—— -179,0000-179,000Total DEL78,896-3,6484,267,306347,7394,615,045 1The total of ‘Administration Budget’ and ‘Near-cash in Resource DEL’ figures may well be greater than total resource DEL, due to the definitions overlapping.2Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.3 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 change in the resource element of DEL arises from:

Modernisation Fund drawdown of £62,500,000 administration near cash costs to modernise and transform HMRC;

Near cash administration costs transfer of £252,000, to the Department for Innovation, Universities and Skills to fund the Skills Strategy for Government.

The change in the administration budget arises from the changes detailed in the resource element above.

The change in the capital element of DEL arises from:

Capital take up from the Modernisation Fund of £13,000,000 for various programmes supporting the modernisation of the Department.

Take up of Departmental Unallocated Provision of £3,648,000 to facilitate improvements to key operational activities—this is DEL neutral.