Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Communities and Local Government's Departmental Expenditure Limits for 2008-09 will change as follows:
The Department for Communities and Local Government's Main Programmes DEL will be increased by £162,288,000 from £11,499,316,000 to £11,661,604,000 and the administration budget will also be increased by £1,240,000 from £289,689,000 to £290,929,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
Change NEW DEL Voted Non-voted Voted Non-voted Total Resource -21,710 21,879 4,004,919 370,749 4,375,668 Of which Administration budget * -260 1,500 289,429 1,500 290,929 Near-cash in RDEL -94,739 94,908 3,897,409 324,846 4,222,255 Capital ** -378,959 531,159 2,102,515 5,224,685 7,327,200 Depreciation*** 1,071 8,848 -36,206 -5,058 -41,264 Total -399,598 561,886 6,071,228 5,590,376 11,661,604 *The total of 'Administration budget' and 'Near cash in Resource DEL' figures may well be greater than total Resource DEL, due to the 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 change in the resource element of the DEL arises from:
(i) a transfer of £1,031,000 to Request for Resources 2 (Local Government DEL) (see 2(iv) below).
(ii) a net transfer of £1,200,000 from other government departments, comprising:
To other Government Departments
Programme Expenditure
(a) £40,000 to the Cabinet Office for the Government Secure Zone Security Monitoring and Control Centre.
From Other government Departments
Administration Costs (Government Offices)
(b) £1,240,000 from the Department for Business, Enterprise and Regulatory Reform for early exit costs of BERR staff in the Government Offices.
(iii) a net increase in receipts of £20,467,000 offsetting increases in provision of £100,000 for Homelessness and Housing Reform for the pilot scheme on overcrowding and worklessness; £1,000,000 for the Community Builders Fund; £500,000 for the cross Government project on adults facing chronic exclusion; £2,069,000 for Fire control rooms; £11,400,000 for Firelink payments made by the Department on behalf of the devolved Administrations; £28,000 for choice based lettings; £4,200,000 for central administration comprising £700,000 for additional work on behalf of other Government Departments and £3,500,000 for outward secondees to other organisations; and £1,170,000 for Government Offices to reflect additional work being undertaken on behalf of the Department of Health.
(iv) a net transfer of £21,879,000 from voted to non- voted provision comprising:
From voted to non-voted provision
(a) £2,500,000 to FireBuy for costs arising from litigation in connection with the Integrated Clothing Project;
(b) £40,953,000 to the Homes and Communities Agency (HCA) to reflect the accounting implications of the application of merger accounting to the establishment of the HCA;
(c) £45,000,000 to non-voted European Regional Development Fund (ERDF) to cover the near cash utilisation cost associated with the balance sheet provision raised in 2007-08 in respect of 1997-99 programmes;
(d) £5,481,000 to the Homes and Communities Agency comprising £1,930,000 for set up costs, £3,100,000 for the ATLAS programme and £451,000 to cover costs of staff seconded to the HCA;
(e) £722,000 to the Tenant Services Authority as part of the Authority's first year budget; and
Administration costs
(f) £1,500,000 to non-voted Government Offices from central administration to adjust budgets for utilisation of provisions in respect of early exit costs.
From non- voted to voted provision
(g) £1,100,000 to Implementing Planning Reforms for the Mine Waste Directive and the Renewable Energy Strategy;
(h) £10,748,000 to Government Offices for a new balance sheet provision for staff early exits;
(i) £8,000,000 for bad debts on old ERDF programmes;
(j) £800,000 for the cost of capital charge on lending to the Fire Service College;
(k) £429,000 to New Dimension for depreciation charges on Mass Decontamination vehicles;
(i) £50,200,000 non-cash for the creation of new provisions for future liabilities in respect of financial corrections to old ERDF programmes, including £18,807,000 from Departmental Unallocated Provision; and
(m) £3,000,000 non-cash for the creation of provisions for future liabilities under the Homeowners Mortgage Support scheme.
The change in the administration budget arises from a transfer of £1,240,000 from the Department for Business, Enterprise and Regulatory Reform (see l(ii) above)
The change in the capital element of the DEL arises from
(v) An increase of £149,700,000 for the changes announced in the Pre Budget report in November 2008 as part of the fiscal stimulus aimed at supporting the economy through the current economic downturn. The increase comprises £87,000,000 for Arms Length Management Organisations; £43,000,000 for Gap funding for large scale voluntary transfers and £19,700,000 for the Community Infrastructure Fund;
(vi) a transfer of £2,500,000 from Request for Resources 2 ( Local Government DEL) for the Regeneration Monitoring and Digital Inclusion programme;
(vii) A decrease in voted receipts of £105,100,000 offset by decreases in non-voted provision of
(a) £50,000,000 for Thames Gateway comprising £44,000,000 through the Homes and Communities Agency (HCA), £3,000,000 through the London Urban Development Corporation and £3,000,000 through the Thurrock Urban Development Corporation; and
(b) £55,100,000 for the HCA's Affordable Housing Programme.
(viii) A net decrease in voted receipts of £10,099,000 offset by a net decrease in voted expenditure comprising:
(a) a decrease of £10,300,000 for the New Deal for Communities;
(b) an increase of £150,000 for central administration in respect of the Department's interest in the sale of land transferred to the Building and Research Establishment; and
(c) an increase of £51,000 for choice based lettings.
(ix) A net transfer of £486,559,000 from voted to non- voted provision comprising
From voted to non-voted provision
(a) £541,408,000 to the Homes and Communities Agency (HCA) to reflect the accounting implications of the application of merger accounting to the establishment of the HCA.
From non- voted to voted provision
(b) £20,253,000 from the Olympic programme contingency for payments to the Department for Culture, Media and Sport towards the 2012 Olympics;
(c) £34,596,000 to Fire control rooms for the temporary acquisition of two Regional Control Centre leases.
(2) The Department for Communities and Local Government's Local Government DEL will be increased by £18,941,000 from £24,873,688,000 to £24,892,629,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
Change NEW DEL Voted Non-voted Voted Non-voted Total Resource 11,441 0 24,614,751 103,109 24,717,860 Of which Administration budget * Near-cash in RDEL 11,441 0 24,614,751 102,223 24,716,974 Capital ** 7,500 0 174,582 1,018 175,600 Depreciation*** 0 0 0 -831 -831 Total 18,941 0 24,789,333 103,296 24,892,629 **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 change in the resource element of the DEL arises from:
(i) take up of End Year Flexibility of £10,000,000 for Local Government Public Services Agreement to cover planned spending over the amount provided in the Comprehensive Spending Review 2007;
(ii) take up of End Year Flexibility of £410,000 for Invest to Save Budget Special Grant to provide funding for projects relating to this financial year;
(iii) an increase in receipts of £1,500,000 offsetting an increase in expenditure for Private Finance Initiative (PFD Special Grant to meet the higher costs of PFI projects for this financial year;
(iv) a net transfer of £1,031,000 from Request for Resources 1 (Main DEL) comprising:
a) £831,000 for Best Value Inspection to support Audit Commission Comprehensive Performance Assessment work on Fire and Rescue Authorities;
b) £200,000 for London Governance for the Mayor's new planning powers under the Greater London Authority Act 2007
The change in the capital element of the DEL arises from
(v) a take up of End Year Flexibility of £10,000,000 for Local Government Public Services Agreement to cover planned spending over the amount provided in the Comprehensive Spending Review 2007;
(vi) A transfer of £2,500,000 to Request for Resources 1 (Main DELI (see l(iv) above).