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Departmental Expenditure Limits

Volume 519: debated on Tuesday 23 November 2010

Subject to Parliamentary approval of any necessary supplementary estimate, the Department for Communities and Local Government’s departmental expenditure limits for 2010-11 will change as follows:

Section 1: Main Programmes DEL

1. The Department for Communities and Local Government’s Main DEL will be decreased by £83,471,000 from £9,937,138,000 to £9,853,667,000 and the administration budget will be increased by £290,000 from £261,722,000 to £262,012,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

(£’000)

Change

NEW DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource

-8,156

-35,317

3,337,329

438,354

3,775,683

Of which

Administration budget

290

260,334

1,678

262,012

Capital 1

-12,005

-58,024

1,305,153

4,816,782

6,121,935

Depreciation 2

0

30,031

-38,488

-5,463

-43,951

Total

-20,161

-63,310

4,603,994

5,249,673

9,853,667

1 Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets

2 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

2. The change in the resource element of the DEL arises from:

2.1 An internal transfer of £2,158,000 to Request for Resources 1 (main DEL) from Request for Resources 2 (Local Government DEL) made up from £1,625,000 to the strategic research budget (main DEL) and £533,000 to DCLG’s communication budget (main DEL). Both of these changes are to enable more effective management of the budgets.

2.2 An increase in main DEL of £700,000 in respect of Infrastructure UK. This is a technical correction.

2.3 A surrender of £46,191,000 programme expenditure to HM Treasury made up of £16,160,000 internal savings and £30,031,000 to reflect technical changes under the clear line of sight project (CLOS) which were overlooked when CLOS was first set up.

2.4 A net transfer of £140,000 to other Government Departments, made up of:

Transfers in (Programme total £8,300,000, Administration total £290,000)

Amount (£)

Department

Reason

£1,980,000

Culture Media and Sport

Contributions to the Migration Impact Fund

£4,340,000

Home Office

£1,980,000

Health

£290,000

Cabinet Office

Transfer of work on Community Cohesion

Transfers out (Programme total £8,730,000)

£2,500,000

Energy and Climate Change

Local Carbon Frameworks

£4,280,000

Business Innovation and Skills

Migration Impact Fund

£100,000

Cabinet Office

Cross Government funding of Information Assurance capabilities.

£1,850,000

Foreign and Commonwealth Office

Papal visit

2.5 a net increase in receipts of £23,837,000. This is made up of increases in provision of:

£100,000 for the dividend payment from the Fire Service College;

£7,020,000 in respect of Firelink projects in Scotland and Wales;

£5,160,000 increase in dividend receipts for Ordnance Survey;

£1,883,000 for staff on loan to the Homes and Communities Agency and outward secondment (administration budget);

£21,833,000 administration for Government Office programmes (administration budget);

offset by decreases in provision of:

£159,000 decrease in dividends for Queen Elizabeth II Conference Centre

£12,000,000 to reflect reduced income from sub-tenants following departure from Ashdown House (administration budget).

2.6 a net transfer of £3,336,000 programme provision from non-voted to voted made up as follows:

from voted to non-voted provision

£2,316,000 was surrendered to the departmental unallocated provision (DUP) in respect of savings identified in the review of Pilots projects;

£2,100,000 of departmental receipts to the Homes and Communities Agency to fund additional pension costs. The additional funding is required to meet liabilities which had not been fully costed when the body was first set up;

£100,000 from fire and rescue services improvement programme (a dividend payment from the Fire Service College) is being transferred to DUP;

from non-voted to voted provision

£1,500,000 from the Homes and Communities Agency Growth due to withdrawal of funding in support of eco-towns.

£6,352,000 from DUP to help restore the European regional development fund (ERDF) liability budget to its original total. (The budget was reduced by £17.1 million at main estimates as a temporary measure while the budgets to deliver administrative savings which contributed to the £6.2 billion savings were identified.

2.7 The changes described at paragraphs 2.5 and 2.6 above have a net nil effect on the departmental expenditure limit:

2.8 The change in the administration budget arises from the transfer of £290,000 from the Cabinet Office—see above table at 2.4.

3. The change in the capital element of the DEL arises from:

3.1 a surrender of £70,029,000 programme expenditure to HM Treasury made up of:

£14,629,000 internal savings; and

£55,400,000 as the borrowing element in respect of local authority new build programmes.

3.2 an increase in receipts of £19,500,000 for capital pooled housing receipts offsetting increases in provision of £5,189,000 for the Olympics programme; £13,277,000 for Control Room, £950,000 for Thames Gateway and £84,000 for renewing neighbourhood programme.

3.3 a net transfer of £2,624,000 from non-voted to voted made up of:

from voted to non-voted provision

£2,340,000 to the community infrastructure fund to support the Dearne Valley transport project to be delivered by Barnsley metropolitan borough council;

£950,000 to Thames Gateway to enable the London Urban Development Council to meet pressures on the additional compulsory purchase order valuation.

from non-voted to voted provision

A surplus on local authority supported capital expenditure (LASCE) of £5,914,000 is being moved to private sector renewal to restore an earlier reduction in their 2010-11 allocation.

3.4 The changes described at paragraphs 3.2 and 3.3 above have a net nil effect on the departmental expenditure limit:

Section 2: Local Government DEL

4. The Department for Communities and Local Government’s local government DEL will be decreased by £2,374,000 from £25,992,569,000 to £25,990,195,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

000)

Change

NEW DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource

-2,158

-182

25,863,046

115,353

25,978,399

Capital 1

0

182

12,470

582

13,052

Depreciation 2

0

-216

0

-1,256

-1,256

Total

-2,158

-216

25,875,516

114,679

25,990,195

1 Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets

2 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.

5. The change in the resource element of the DEL arises from:

the transfer of £2,158,000 from Request for Resources 2 (local government DEL) to Request for Resources 1 (main DEL) described at paragraph 2.1 above

a switch of £182,000 from resource to capital. Local Government Standards Board’s capital allocation was taken out in the last budget reduction. It was necessary to transfer this fund from resource to capital to cover the spending to date.

6. The change in the capital element of the DEL arises from

the switch of £182,000 to Capital from Resource for Local Government Standards Board described above.