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Departmental Expenditure Limits

Volume 487: debated on Thursday 12 February 2009

Subject to Parliamentary approval of the New Estimate, the total Departmental Expenditure Limit (DEL) budget for the Department of Energy and Climate Change will be £2,790,657,000 and the Administration budget will be £98,320,000.

£'000

Voted

Non-voted

Total

Resource DEL

-844,531

1,933,534

1,089,003

of which:

Administration budget*

98,320

0

98,320

Near-cash in RDEL *

-949,315

1,981,286

1,031,971

Capital DEL**

513,230

1,195,401

1,708,631

Less Depreciation ***

-3,105

-3,872

-6,977

Total DEL

-334,406

3,125,063

2,790,657

*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 resource element of the DEL arises from:

i) A Machinery of Government transfer from the Department for Business, Enterprise and Regulatory Reform of a net negative £963,013,000 voted near-cash, £1,711,504,000 of non-voted near-cash, a net negative £2,980,000 voted non-cash and a net negative £47,752,000 of non-voted non-cash in respect of Supporting affordable, secure and sustainable energy and managing historic energy liabilities effectively and responsibly;

ii) A Machinery of Government transfer from the Department for Environment, Food and Rural Affairs of £152,512,000 voted near-cash and £34,000,000 of non-voted near-cash in respect of bringing about a low-carbon Britain, Developing an international agreement on climate change and Promoting low carbon technologies in developing countries;

iii) a reduction in non-voted expenditure of £27,000,000 and a reduction in voted income of £28,932,000 relating to reclassification of entities within the Nuclear Decommissioning Authority;

iv) an increase in non-voted expenditure of £296,782,000 and an increase in voted income of £296,782,000 due to updated income and expenditure forecasts for the Nuclear Decommissioning Authority;

v) a Reserve claim of £54,100,000 non-cash in respect of an increase in provision for the Concessionary Fuel Scheme;

vi) utilisation of End Year Flexibility of £50,300,000 non-cash in respect of an increase in provision for the Concessionary Fuel Scheme;

vii) a transfer of £80,000 from the Department for Business, Enterprise and Regulatory Reform in respect of compensation for mesothelioma sufferers; and

viii) an increase in voted near-cash expenditure and a decrease in non-voted near-cash expenditure of £34,000,000 with respect to take up of Departmental Unallocated Provision for the Warm Front programme.

Also within the resource DEL, the Administration budget arises from:

ix) A Machinery of Government transfer from the Department for Business, Enterprise and Regulatory Reform of £52,471,000 near-cash and £3,000 of non-cash in respect of Professional support and infrastructure; and

i) a Machinery of Government transfer from the Department for Environment Food and Rural Affairs of £42,485,000 near-cash and £3,361,000 of non-cash in respect of Professional support and infrastructure.

The change in the Capital element of the DEL arises from:

i) A Machinery of Government transfer from the Department for Business, Enterprise and Regulatory Reform of a net negative £7,582,000 voted and £1,248,183,000 non-voted in respect of Supporting affordable, secure and sustainable energy and managing historic energy liabilities effectively and responsibly;

ii) A Machinery of Government transfer from the Department for Environment Food and Rural Affairs of £402,030,000 voted and £16,000,000 non-voted in respect of bringing about a low-carbon Britain, Developing an international agreement on climate change and Promoting low carbon technologies in developing countries;

iii) A 2008 Pre Budget Report award of £50,000,000 in respect of bringing about a low-carbon Britain;

iv) a reduction in voted income of £52,782,000 and a reduction in non-voted expenditure of £52,782,000 due to updated income and expenditure forecasts for the Nuclear Decommissioning Authority; and

v) an increase in voted expenditure and a decrease in non-voted expenditure of £16,000,000 with respect to take up of Departmental Unallocated Provision for the Warm Front programme.