Subject to Parliamentary approval of any necessary supplementary estimate, the Department for Transport departmental expenditure limit (DEL) for 2008-09 will be decreased by £11,270,000 from £13,239,009 to £13,227,739,000 and the administration budget will be increased by £11,200,000 from £281,926,000 to £293,126,000.

Within the DEL change, the impact on resources and capital, are set out in the following table:

Resource change: Administration (total increase of £11,200,000)

Voted: total increase of £11,250,000

RfR1

(i) Take up of £11,200,000 near cash end year flexibility for administration pressures (£8,045,000)

(ii) £50,000 near cash transfer from non voted for administration pressures

(iii) Within the Administration Budget £3,800,000 of non-cash headroom has been converted to near cash, permitted under Treasury guidelines, to meet pressures in estates and aviation

Non Voted: total decrease of £50,000

Transfer of £50,000 to administration near cash voted provision.

Resource change: Programme (total increase of £462,663,000)

Voted: total increase of £101,972,000

RfR1

(i) Treasury agreed increase of £462,718,000^* non cash to reflect the accounting treatment of changes in fair values arising from the implementation of accounting standards FRS 25 and FRS 26 for: London and Continental railways (£300,000,000); Network Rail’s Debt Issuance Programme (£164,886,000); and the Air Travel Trust Fund (£-2,168,000); partially offset by the £462,718,000 is included in the £485,133,000 depreciation increase for the Spring Supplementary Estimate which also includes an increase of £26,215,000 for the Highways Agency partially offset by a decrease of £3,800,000 for central administration.

(ii) A net transfer of £360,691,000 to non voted provision as follows:

a. £369,383,000 near cash headroom from rail: for the net operating losses of London and Continental railways (£252,000,000); to the departmental unallocated provision in respect of programme slippage into 2009-10 (£104,928,000); and to cover a shortfall in Driver and Vehicle Licensing Agency receipts (£12,455,000);

b. £4,045,000 near cash headroom from cleaner fuels and vehicles to cover a shortfall in driver and vehicle Licensing Agency receipts:

c.£500,000 near cash from other transport grants transferred to railways to allow payments to both the Rail Passenger Council and the Bus Passenger council to be administered more efficiently;

d. £2,500,000 non cash to reflect the write back of Voluntary Early retirement provision; partially offset by

e. £15,737,000 near cash use of Consolidated Fund Extra Receipts within the Departmental Expenditure Limit by the Highways Agency.

(iii) A transfer of £55,000 near cash to the Department for Innovation Universities and Skills for Government skills

Non-Voted: total net increases of £360,691,000

(i) £360,691,000 transferred from voted provision of which £358,191,000 is near cash and £2,500,000 non cash.

Capital Change: (no net change)

Voted: total increase of £227,060,000 RfR1

(i) A net transfer of £227,060,000 from non voted provision as follows:

a. a transfer from departmental unallocated provision to Network Rail capital grants (£258,060,000); partially offset by

b. a transfer of £5,100,000 from headroom on other transport grants (£3,100,000) and aviation services, transport security and royal travel (£2,000,000) to the shared services transformation project; and

c. a transfer of £25,900,000 2012 Olympics underspend to the departmental unallocated provision for use on this programme in future years.

Non-voted: total decrease of £227,060,000

(i) A net transfer of £227,060,000 to voted provision.