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HM Treasury (Vote on Account)

Volume 495: debated on Monday 6 July 2009

This statement gives notice of a resource commitment in advance of the authorisation by Parliament of supply provision for HM Treasury in 2009-10. There are no implications for cash spending.

In the 2009-10 “Vote on Account” (HC 1039) presented in November 2008, HM Treasury was voted resource provision of £142 million to cover spending on continuing services until the 2009-10 main estimates are voted by Parliament in July. The amount on account excluded any provision for financial stability related resource consumption as, at the time, this was expected to be zero.

However, it has since been decided that a cost of capital charge should be applied to the Government’s financial stability related loans and investments. Cost of capital charge is a non-cash resource charge, accruing on a daily basis, designed to improve transparency under resource accounting and encourage the efficient use of assets. For 2009-10, the charge is forecast to be £450 million which will not be available until the provision in the Treasury’s 2009-10 main estimate, presented (today) as HC 514, is voted by Parliament in July. This means that the proportion of the £450 million resources that will be consumed before the end of July (i.e. £135 million) will take resource spending over and above the £142 million authorised in the “Vote on Account” causing a resource commitment in advance of supply.