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UK Trade and Investment (Departmental Expenditure Limits)

Volume 506: debated on Tuesday 23 February 2010

My noble Friend the Minister with responsibility for trade, investment and small Business, Lord Davies of Abersoch, has today made the following statement:

The statement below follows the format guidance as set out in “Supply Estimates: guidance manual”, available on the HMT website.

Subject to parliamentary approval of any necessary supplementary estimate, UKTI’s total DEL (Resource and Capital) will be increased by £3,255,000 from £96,610,000 to £99,865,000. This reflects the net transfer of £500,000 in voted resource from BIS’s vote to UKTI’s vote and the relevant IFRS changes. Within the total DEL change, the impact on resources and capital is set out in the following table:

£’000

Change

New DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource DEL

-485

-

95,877

-

95,877

Of which:

Near-cash in RDEL

-1,531

-

94,744

-

94,744

Capital DEL *

3,740

-

3,988

-

3,988

Less Depreciation **

-1,046

-

-1,212

-

-1,212

Total DEL

2,209

-

98,653

-

98,653

* 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 total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

UKTI’s vote does not include administration provision, which is included in the estimates of our parent departments, BIS and FCO.

The change in the resource element of departmental expenditure limit (DEL) sought in this supplementary estimate relate primarily to:

A decrease of £1,067,000 to allow more cover in capital due to IFRS.

An increase of £81,000 to allow for depreciation cover due to IFRS.

An increase of £500,000 as a result of the BIS transfer to UKTI for the inward investment conference.

An increase of £486,000 as a result of the estimate exclusion adjustment

An increase of a token £1,000 to allow the increase in appropriations-in-aid

The change in the capital element of DEL sought in this supplementary estimate relate primarily to:

An increase of £1,067,000 due to IFRS.

An increase of £2,673,000 transferred from BIS due to IFRS changes.