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Departmental Expenditure Limit (2010-11)

Volume 523: debated on Monday 14 February 2011

Subject to parliamentary approval of the necessary supplementary estimate, the Department for Business, Innovation and Skills’ DEL will be increased by £2,876,008,000 from £20,801,811,000 to £23,677,819,000 and the administration budget will be increased by £2,826,000 from £323,487,000 to £326,313,000.

Within the DEL change, the impact on Resources and Capital is as set out in the following table:

ChangeNew DEL

Voted

Non- Voted

Voted

Non-Voted

Total

Resource

(£000)

2,817,200

(51,602)

10,590,127

11,211,457

21,801,584

of which:

Administration budget*

2,826

0

322,669

3,644

326,313

Near cash in Resource DEL**

154,200

(69,602)

6,364,594

11,025,140

17,389,734

Capital

(£000)

4,977

123,433

704,548

1,426,195

2,130,743

Less

Depreciation***

(£000)

0

(18,000)

(68,191)

(186,317)

(254,508)

Total

(£000)

2,822,177

53,831

11,226,484

12,451,335

23,677,819

*The total of the 'Administration Budget' and 'Near Cash in Resource DEL' figures may well be greater than total Resource DEL, due to the definitions overlapping.

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

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

RfR1

i) A reserve claim of £5,121,000 for Ofcom to enable repayment of levies to Channel 3 and Channel 5 following a recent license review which resulted in a change in the terms of the license;

ii) A reduction in voted receipts from the Department for Work and Pensions of £1,572,000 and a reduction of non-voted expenditure by the Regional Development Agencies in respect of self-employment programmes;

iii) A virement of £2,580,000 from non-voted expenditure by the Regional Development Agencies to voted expenditure by the Skills Funding Agency (RfR3) in respect of the regional skills strategy;

iv) A reduction of £64,865,000 in voted receipts from the Department for Communities and Local Government and a reduction in non-voted expenditure by the Regional Development Agencies;

v) A virement of £222,000 voted business support programmes to non-voted expenditure by the Regional Development Agencies;

vi) A virement of £195,000 from London Development Agency to the Skills Funding Agency (RfR3) for the regional skills strategy;

vii) A reclassification of £40,000,000 from non-voted resource expenditure on Small Firms Loan Guarantee provisions to voted capital expenditure on Launch Investment;

viii) A reclassification of £40,705,000 from voted capital expenditure by the Strategic Investment Fund to non-voted resource expenditure by the Technology Strategy Board for the Strategic Investment in Low Carbon Engine programme (£40,500,000) and Composites Challenge (£205,000);

ix) A virement of £5,800,000 from voted business programmes to non-voted expenditure by the Technology Strategy Board for Advanced Powerplant and Aerodynamics Research Technology and Rapid Technology Evolution;

x) A reclassification of £5,900,000 from voted Strategic Investment Fund capital expenditure to non-voted resource expenditure by the Technology Strategy Board for Rotorcraft Technology Validation Programme;

xi) A reclassification of £21,393,000 from voted capital expenditure by the Strategic Investment Fund to various voted resource programmes including the Hybrid Training Vehicle Package and the Manufacturing Advisory Service Low Carbon project;

xii) A Machinery of Government transfer from HM Treasury of £176,000 for the Government Property Unit;

xiii) A budget transfer of £899,000 to the Office of Fair Trading to fund an enforcement team to protect consumers from internet fraud;

xiv) A virement of £60,000 from RfR3 for Mutual Recognition of Professional Qualifications;

xv) A virement of £194,000 underspend on Government Skills (RfR3) to expenditure on restructuring;

xvi) A utilisation of £8,321,000 from the non-voted Departmental Unallocated Provision towards voted central services;

RfR2

i) A reclassification from resource to capital of £9,470,000 in respect of non-voted expenditure by the Engineering and Physical Sciences Research Council;

ii) A virement of £100,000 from voted expenditure on Science and Society to non-voted expenditure by the research councils;

iii) A Reserve Claim of £18,000,000 of non-voted expenditure in respect of non-cash for amortisation of Medical Research Council intellectual property assets;

RfR3

i) A non cash Reserve Claim of £2,663,000,000 in relation to Student Loan provisions and impairments of the value of the Student Loan book. This reflects the low level of interest rates which has prevailed since 2008 and potential changes in valuation following a current review of the modelling. As a complex and volatile asset, which is sensitive to macro-economic changes outside BIS’s control, an element of contingency has been included.

ii) Utilisation of £11,964,000 of end year flexibility for the Aimhigher programme

iii) Utilisation of £100,036,000 of end year flexibility for student grants;

iv) Utilisation of £74,300,000 of end year flexibility for the Skills Funding Agency comprising: £14,300,000 for the Unemployment package (6-month offers); £23,000,000 for Apprenticeships; £30,000,000 for the Adult Skills Participation Level 3 programme and £7,000,000 for Career Development Loans;

v) A reclassification of £99,152,000 from resource to capital in respect of the Skills Funding Agency;

vi) A reclassification of £2,000,000 from non-voted resource to non-voted capital in respect of the Higher Education Funding Council for England;

vii) A reclassification of £1,974,000 from non-voted resource to non-voted capital in respect of the Student Loans Company;

viii) A reclassification of £11,700,000 from voted resource to non-voted capital in respect of the Higher Education Funding Council for England;

ix) A virement of £748,000 from non-voted expenditure by the Student Loans Company to voted expenditure on Student Support;

x) An increase of £13,101,000 in voted receipts for the Student Loans Company, offset by an increase in non-voted expenditure;

xi) A virement of £3,900,000 from non-voted expenditure by the UK Commission for Employment and Skills to voted expenditure by the Skills Funding Agency;

xii) A budget transfer of £75,000 from the Department for Education to the Learning and Skills Improvement Service for costs of BECTA (British Educational and Communications Technology Agency) staff;

xiii) A budget transfer from the Ministry of Justice of £197,000 for careers advice in prisons;

xiv) A budget transfer to the Department for Education of £1,000,000 for Family Learning Impact Funding;

xv) A budget transfer of £11,900,000 from the Skills Funding Agency to the Department for Education for Learners with Learning Difficulties and/or Disabilities;

xvi) A virement of £194,000 from an underspend on Government Skills to expenditure on restructuring;

xvii) A virement of £60,000 to RfR1 for Mutual Recognition of Professional Qualifications;

xviii) A virement of £195,000 from the London Development Agency (RfR1) to the Skills Funding Agency for the regional skills strategy;

xix) A virement of £2,580,000 from non-voted expenditure by the Regional Development Agencies (RfR1) to voted expenditure by the Skills Funding Agency in respect of the regional skills strategy;

Also within the change to resource DEL, the changes to the Administration budget are (RfR1):

i) A Machinery of Government transfer from HM Treasury of £2,826,000 for the Government Property Unit;

The change in the Capital element of the DEL arises from:

RfR1

i) An increase of £64,865,000 in voted receipts from the Department for Communities and Local Government and an increase in non-voted expenditure by the Regional Development Agencies;

ii) A virement of £7,200,000 voted grants for business investment to non-voted expenditure by the Regional Development Agencies;

iii) An increase of £45,000 in voted receipts from the Department for Transport and an increase in non-voted expenditure by the Regional Development Agencies in respect of regional infrastructure funds;

iv) A reclassification of £40,705,000 from voted capital expenditure by the Strategic Investment Fund to non-voted resource expenditure by the Technology Strategy Board for the Strategic Investment in Low Carbon Engine programme (£40,500,000) and Composite Challenge (£205,000);

v) A reclassification of £21,393,000 from voted capital expenditure by the Strategic Investment Fund to various voted resource programmes including the Hybrid Training Vehicle Package and the Manufacturing Advisory Service Low Carbon programme;

vi) A virement of £5,900,000 from voted Strategic Investment Fund capital expenditure to non-voted resource expenditure by the Technology Strategy Board for the Rotorcraft Technology Validation Programme;

vii) A reclassification of £40,000,000 from non-voted resource expenditure on Small Firms Loan Guarantee provisions to voted capital expenditure on Launch Investment;

viii) A virement of £25,600,000 of Launch Investment receipts from non-voted Consolidated Fund Extra Receipts to voted Appropriations in Aid;

ix) A budget transfer of £1,000,000 from UK Trade and Investment towards accommodation costs;

x) A budget transfer of £31,112,000 from the Northern Ireland executive for Launch Investment;

RfR2

i) A virement of £140,000 from non-voted expenditure by the research councils to voted expenditure by the British Academy;

ii) A reclassification from resource to capital of £9,470,000 in respect of non-voted expenditure by the Engineering and Physical Sciences Research Council;

RfR3

i) A reclassification of £99,152,000 from resource to capital in respect of the Skills Funding Agency;

ii) A reclassification of £11,700,000 from voted resource to non-voted capital in respect of the Higher Education Funding Council for England;

iii) A reclassification of £2,000,000 from non-voted resource to non-voted capital in respect of the Higher Education Funding Council for England;

iv) A reclassification of £1,974,000 from non-voted resource to non-voted capital in respect of the Student Loans Company;

v) An increase of £719,000 in voted receipts for the Student Loans Company, offset by an increase in non-voted expenditure.