Subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence Departmental Expenditure Limits (DEL) will be increased by £176,772,000 (Voted and Non Voted) from £39,419,339,000 to £39,596,111,000. 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 295,792 32,980 38,687,508 223,445 38,910,953 Of which: Administration Budget - - 2,237,737 - 2,237,737 Near-cash in RDEL 34,792 32,980 26,371,391 424,925 26,796,316 Capital -71,000 - 9,048,789 851 9,049,640 Depreciation* -81,000 - -8,354,962 -9,520 -8,364,482 Total 143,792 32,980 39,381,335 214,776 39,596,111 *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 changes to the resource and capital elements of the DEL arise from:
to transfer £100,000,000 capital resource to direct resource within RfRl relating to single use military equipment (SUME) flexibility with no overall impact on DEL;
a transfer in from the Department for Transport of £500,000 in respect of funding arrangements for the Royal Flight (RfRl);
transfers out to the Foreign and Commonwealth Office being the MOD’s contribution to the Afghanistan delivery group of £6,500,000 (RfRl); transfers out to the Department for International Development of £500,000 being the MOD’s contribution to the tri-department stabilisation unit (RfRl) and £6,729,000 being the MOD’s contribution to the conflict pool (enabled by a token increase of £1,000 resource DEL in RfR2);
an increase in fiscal capital resource of £17,000,000 to reflect the abatement of the MOD 2008-09 Treasury fine, which resulted from a smaller overspend than originally forecasted;
an increase in fiscal capital resource of £15,000,000 to reflect treasury relief for lower capital receipts in Northern Ireland than originally forecasted;
an increase of £20,000,000 resource DEL (funded from our 2008-09 end year flexibility stock) to reflect the Government decision to negate the impact of the planned MOD training costs 2009-10 budget reduction for the Territorial Army (RfRl);
to reflect the estimated net resource ( near cash and indirect cost) impact of the third stage of the international financial reporting standards for leases relating to Annington Homes (IAS 17) of £222,000,000;
to reflect the estimated net capital resource ( near cash) impact of the third stage of the international financial reporting standards for leases relating to Annington Homes (IAS 17) being a reduction of £3,000,000;
to increase non-budget grants in aid (non-voted) for the Council of Reserve Forces and Cadets Association of £31,700,000; £180,000 for the National Army Museum; and £1,100,000 for the Royal Hospital, Chelsea ; by reducing resource DEL current costs and increasing non-budget grants in aid with no overall impact on resource;
to revise sub-head provisions to reflect resource and capital revisions in allocations between top level budget-holders to match required defence outputs, with no overall impact on DEL.
The changes to resource DEL and capital DEL will lead to an increased net cash requirement of £38,501,000.