The following statement replaces information given in the Ministry of Defence previous departmental expenditure limits (DEL) written ministerial statement on 23 February 2010, Official Report, columns 29-30WS.
Subject to parliamentary approval of the necessary supplementary estimate, the DEL will be increased by £284,565,000, voted and non-voted, from £39,596,111,000 to £39,880,676,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
Voted Non-Voted Voted Non-voted Total Resource -33,261 222,396 38,660,976 439,112 39,100,088 Of which: Administration Budget 211 - 2,237,948 - 2,237,948 Near-cash in RDEL -100,650 250,355 26,277,470 668,551 26,946,021 Capital 178,695 - 9,227,484 851 9,228,335 Depreciation* -83,265 -8,438,227 -9,520 -8,447,747 Total 62,169 222,396 39,450,233 430,443 39,880,676 *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:
Voted Resource DEL decrease £33,261,000:
RfRl:
(1) An increase of £100,000,000 Direct Resource near cash relief in RfRl, as agreed with Treasury from the Reserve.
(2) Resource transfers into RfRl from the Cabinet Office being their contribution to MOD security costs of £6,000,000 transfers from the Foreign and Commonwealth Office of £6,695,000 and £1,965,000 for the Counter Narcotics Ground Force, and a transfer of £1,002,000 from the Foreign and Commonwealth Office being their contribution to the Information Assurance Technical Programme.
(3) A transfer of £211,000 from the Cabinet Office being their contribution to the Parliamentary Counsel cost (an increase in Administration Voted DEL).
(4) A net decrease in the cash release of provisions of £17,324,000 charged to RDEL (with a corresponding increase in the provision charge scored in AME) to reflect the latest forecast of outturn.
(5) To re-allocate the net resource impact of £35,000,000 for employee benefits under IFRS trigger point 3 from AME to Resource DEL, reflecting the revised control framework for this item.
(6) To reflect the revised, and reduced, resource impact assessment of disclosing three PFI contracts as finance leases under IAS 17, being a credit of £21,000,000.
(7) To reflect the revised resource impact resulting from a reduced service charge credit relating to Annington Homes of £18,000,000.
(8) To reflect the non cash resource impact, in the amount of £26,000,000, of implementing IFRS 17 on three PFI off balance sheet contracts now re-assessed as finance leases.
(9) To reflect the IFRS reduced near cash service charge of £178,000,000 impact of disclosing IFRIC 12 PFI assets on MOD's balance sheet.
(10) To increase Non-Budget Grants in Aid (Non Voted) for the Council of Reserve Forces and Cadets Association (RFCA) of £4,199,000 in the Central Top Level Budget (TLB) and £4,943,000 in Land TLB; £210,000 for the Marine and Sea Cadets Society by reducing Resource DEL current costs and increasing Non-Budget Grants in Aid with no overall impact on resource.
(11) To increase non budget funding by £10,991,000 from within Resource DEL to reflect the latest forecast of outturn for the Navy Command, Land Forces, and Central TLBs.
(12) To revise sub-head provisions to reflect Resource and Capital revisions in allocations between TLB Holders to match required defence outputs, with no overall impact on DEL.
RfR2:
(1) A net resource increase of £13,430,000 in non- cash depreciation and cost of capital costs to reflect the latest forecast cost of operations in Iraq and Afghanistan.
(2) A transfer in of £1,832,000 from the Department for International Development (DflD) being their contribution to the Global Pool (RfR2).
(3) To reflect a technical disclosure change by moving £6,729,000 from Voted to Non-Voted expenditure, relating to a transfer made to DflD in Winter Supplementary Estimates (WSE), with no overall impact on DEL.
Non-Voted Resource DEL increase £222,396,000:
RfRl:
(1) A net increase in the cash release of provisions of £17,324,000 charged to Non-Voted RDEL (with a corresponding increase in the provision charge scored in AME) to reflect the latest forecast of outturn.
(2) To reflect the IFRS reduced near cash service charge of £178,000,000 impact of disclosing IFRIC 12 PFI assets on MOD’s balance sheet being a charge to Non-Voted resource.
(3) To reflect the Non-Voted impact of an increase in Non-Budget Grants in Aid (Non Voted) for the Council of RFC A of £4,199,000 in the Central TLB and £4,943,000 in Land TLB; £210,000 for the Marine and Sea Cadets Society by reducing Resource DEL current costs and increasing Non-Budget Grants in Aid with no overall impact on resource.
(4) To reflect the Non-Voted impact of an increase in Non-Budget funding by £10,991,000 from within Resource DEL to reflect the latest forecast of outturn for the Navy Command, Land Forces and Central TLBs.
RfR2:
(1) To reflect a technical disclosure change by moving £6,729,000 from Voted to Non-Voted expenditure, relating to a transfer made to DflD in WSE, with no overall impact on DEL.
Voted Capital DEL Increase: £178,695,000:
RfRl:
(1) A further increase in Fiscal Capital Resource of £5,000,000 to reflect Treasury reserve relief for lower capital receipts in Northern Ireland than originally forecasted.
(2) To reflect the capital impact of implementing IFRS 17 on three PFI off balance sheet contracts now re-assessed as Finance Leases of £13,000,000.
RfR2:
(1) To request a net increase in Capital DEL of £160,695,000 to reflect the latest forecast cost of operations in Iraq and Afghanistan funded from the reserve.
The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £935,052,000.