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HM Revenue and Customs: DEL

Volume 689: debated on Tuesday 20 February 2007

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, the HM Revenue & Customs departmental expenditure limit (DEL) will be increased by £98,509,000 from £4,858,924,000 to £4,957,433,000 and the administration costs limits will be increased by £31,230,000 from £4,492,263,000 to £4,523,493,000.

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

144,261

-76,665

4,271,163

347,939

4,619,102

Of which:

Administration Budget*

91,304

-60,074

4,523,493

-

4,523,493

Near-cash in RDEL

106 477

-64,288

3,965072

404,316

4,369,388

Capital**

34,652

-3,739

338,331

-

338,331

Less Depreciation ***

-13,8651

-

-202,99

-

-202,998

Total

165,048

-80,404

4,406,496

347,939

4,754,435

*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 £31,230,000)

Voted total increase of £91,304,000.

RfRI

£60,074,000 department unallocated provision from non-voted to voted administration costs to support ongoing merger costs and to drive forward the modernisation programme;

£38 million non-cash administration costs end-year flexibility (EYF), as announced in the 2005-06 public expenditure outturn White Paper (Cm6883);

£35,109,000 transfer of administration costs to programme expenditure, of which £11,000,000 relates to a reclassification of some legal costs;

£30 million reserve claim in respect of the expansion of call centre capacity;

a machinery of government change to the Home Office in respect of Serious Organised Crime Agency funding amounting to £1,445,000 in near cash administration costs and £216,000 in non-cash administration costs.

Non-voted: total decrease of £60,074,000.

RfR1

£60,074,000 department unallocated provision from non-voted to voted administration costs to support on-going merger costs and to drive forward the modernisation programme.

Resource Change: Programme (total increase of £36,366,000)

Voted: total increase of £52,957,000.

RfR1

£35,109,000 transfer of administration costs to programme expenditure, of which £11 million relates to the reclassification of some legal costs;

a reduction of £16,277,000 to voted programme receipts met from a commensurate reduction in non-voted programme expenditure. This is a neutral DEL change;

£1,500,000 reclassified as programme expenditure from capital DEL in respect of the government secure zone;

£168,000 programme expenditure from the Department for Finance and Personnel in respect of the aggregates levy;

a machinery of government change to the Home Office in respect of Serious Organised Crime Agency funding amounting to £97,000 in programme expenditure.

Non-voted: total decrease of £16,591,000

RfR1

A reduction of £16,277,000 to voted programme receipts met from a commensurate reduction in non-voted programme expenditure. This is a neutral DEL change;

£314,000 transfer to DWP in respect of the National Insurance Fund provision.

Capital Change (total increase. of £30,913,000)

Voted: total increase of £34,652,000

£30,602,000 transferred from resource to help deliver major investment in information technology and business systems infrastructure;

£3,739,000 non-voted department unallocated provision transferred to voted capital DEL to help deliver major investment in information technology and business systems infrastructure;

£1,500,000 reclassified as programme expenditure from capital DEL in respect of the government secure zone;

a machinery of government change to the Home Office in respect of Serious Organised Crime Agency funding amounting to £289,000.

RfR2

£2,100,000 administration costs, as announced in the 2005-06 public expenditure outturn White Paper (Cm6883) vired into capital.

Non-voted: total decrease of £3,739,000

RfR1

£3,739,000 non-voted from department unallocated provision to help deliver major investment in information technology and business systems infrastructure.