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Departmental Expenditure Limits

Volume 506: debated on Tuesday 23 February 2010

Subject to the necessary Supplementary Estimates, the Department of Health's element of the Departmental Expenditure Limit (DEL) will increase by £214,306,000 from £105,349,954,000 to £105,564,260,000 and the Administration Cost Limit increases by £4,426,000 from £213,765,000 to £218,191,000. The Food Standards Agency DEL decreases by £1,500,000 from £134,987,000 to £133,487,000. The overall DEL including the Food Standards Agency will increase by £212,806,000 from £105,484,941,000 to £105,697,747,000. The impact on resource and capital are set out in the following table:

CHANGENew DEL

Voted £m

Non-voted £m

Voted £m

Non-voted £m

Total £m

Department of Health

Resource DEL

377.033

-37.925

101,795.986

-1,507.778

100,288.208

of which:

Administration Budget *

4.426

-

218.191

-

218.191

Near-cash in Resource DEL

256.448

-28.276

96,935.132

-208.409

96,726.723

Capital DEL

11.646

-136.448

2,650.151

2,625.901

5,276.052

Total Department of Health DEL

388.679

-174.373

104,446.137

1,118.123

105,564.260

Depreciation **

30.042

-109.422

-902.961

-177.166

-1,080.127

Total Department of Health spending (after adjustment)

418.721

-283.795

103,543.176

940.957

104,484.133

Food Standards Agency

Resource DEL

2.000

-3.500

136.371

-3.500

132.871

of which:

Administration Budget *

2.000

51.894

51.894

Near-cash in Resource DEL

137.214

137.214

Capital DEL

0.616

0.616

Total Food Standards Agency DEL

2.000

136.987

-3.500

133.487

Depreciation **

-1.908

-1.908

Total Food Standards Agency spending (after adjustment)

2.000

-3.500

135.079

-3.500

131.579

* The total of “administration budget” and “Near-cash in Resource DEL” figures may well be greater than the total resource DEL, due to definitions overlapping.

** Depreciation, which forms part of resource DEL, is excluded from the total DEL since the capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The Department of Health DEL has increased by £214,306,000 made up of:

a transfer of £568,000 from the Ministry of Justice, mainly for prison healthcare services;

a transfer of £2,854,000 from the Home Office as the Department’s share of a contribution to the migration impact fund;

a transfer of £280,000 to the Department for International Development for the healthy living fund;

a transfer from the Cabinet Office of £426,000 (administration costs) for services of the Parliamentary Counsel; and

an increase of £210,738,000 for changes in accounting policies resulting from the introduction of International Financial Reporting Standards.

In addition, the following internal transfers were made:

a transfer of £4,000,000 from programme to administration costs to meet additional costs arising from the Swine Flu programme, reform of Care and Support and the NHS Next Stage Review; and

a transfer from the capital budget to the revenue budget of £200,000,000 to meet existing commitments on pandemic flu.

The Department of Health’s administration cost limit has increased by £4,426,000 as detailed above.

The change to the Food Standards Agency element of the DEL is due to:

an increase in the administration budget of £2,000,000 to fund reorganisation within FSA headquarters; and

a decrease of £3,500,000 programme cost identified savings in relation to research and campaign activity.