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Revenue and Customs: Departmental Expenditure Limit

Volume 687: debated on Tuesday 21 November 2006

My right honourable friend the Paymaster General (Dawn Primarolo) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, HM Revenue and Customs departmental expenditure limit (DEL) will be increased by £56,085,000 from £4,802,839,000 to £4,858,924,000 and the administration costs limits will be increased by £9,887,000 from £4,482,376,000 to £4,492,263,000.

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 DEL

4,617

23,946

4126,902

424,604

4,551,506

of which:

Administration Budget*

9,887

-

4,432,189

60,074

4,492,263

Near-cash in RDEL

12,677

57,616

3,858,595

468,604

4,327,199

Capital**

27,522

-

303,679

3,739

307,418

Less Depreciation***

7,200

-189,133

-

-189,133

Total

39,339

23,946

4,241,448

428,343

4,669,791

* The total of “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.

Resource Change: Admin (total increase of £9,887,000)

Voted: total increase of £9,887,000.

RfR1

i. Take up of £90,000,000 end year flexibility to support ongoing merger costs of HMRC and to meet efficiency targets.

ii. Transfer of £80,113,000 to the Home Office in respect of a machinery of government change to provide funding to the Serious Organised Crime Agency (SOCA).

Resource Change: Programme (total increase of £18,676,000)

Voted: total decrease of £5,270,000.

RfR1

i. Transfer of £7,012,000 to the Home Office in respect of a machinery of government change, which provides funding to the Serious Organised Crime Agency (SOCA).

ii. Transfer of £1,742,000 from the Cabinet Office in respect of Parliamentary Counsel Office funding.

Non-voted: total increase of £23,946,000.

RfR1

Transfer of £23,946,000 from the Department for Constitutional Affairs (DCA) to cover additional costs associated with the National Insurance Fund.

Capital Change (total increase of £27,522,000)

RfR1

Voted: total increase of £27,522,000

i. Increase of £30,590,000 arising from the drawdown of capital EYF to support the costs of major investment in IT and business systems infrastructure following the creation of HMRC.

ii. Transfer of £6,897,000 to the Home Office in respect of a machinery of government change, which provides funding to the Serious Organised Crime Agency (SOCA).

RfR2

i. Increase of £3,829,000 arising from the drawdown of capital EYF to support the costs of IT investment in the Valuation Office Agency.