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Departmental Public Expenditure

Volume 488: debated on Monday 2 March 2009

To ask the Secretary of State for Defence pursuant to his Department’s Spring Supplementary Estimate, what the reasons are for the £170 million increase in RfR 1 subhead U2; and which assets have fallen in value. (258869)

The 2008-09 MOD Spring Supplementary Estimates requested £170 million of net additional resources for non-cash Annually Managed Expenditure (AME). This covers a £200 million impairment charge due to the downward revaluation of land and buildings (reflecting current UK property market conditions); and also the downward revaluation of land and buildings planned for disposal by Defence Estates. The Defence Estates total holding of land and buildings is currently valued at £20 billion. This increased gross AME provision request was partially offset by a £30 million decrease resulting from a revised equipment impairment forecast.

To ask the Secretary of State for Defence if he will break down his Department’s Spring Supplementary Estimates 2009-10 on the same basis as in the answer of 14 July 2008 to the hon. Member for Aldershot, Official Report, column 167W, on departmental public expenditure. (259452)