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Ministry of Defence: DEL

Volume 689: debated on Tuesday 20 February 2007

My right honourable friend the Secretary of State for Defence (Mr Des Browne) has made the following Written Ministerial Statement:

Subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence departmental expenditure limits (DEL) will be increased by £539,530,000 from £33,611,177,000 to £34,150,707,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

£000s

Change

New DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource

555,530

-250,000

33,553,497

550,550

34,104,047

Near-cash in RDEL

450,530

-

22,898,385

318,984

23,217,369

Capital

89,000

-

7,446,916

744

7,447,660

Depreciation

-100,000

250,000

-7,181,000

-220,000

-7,401,000

Total

539,530

-

33,819,413

331,294

34,150,707

*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:

the drawdown of part of the department's unallocated provision (DUP) of £250,000,000 indirect resource DEL to meet top-level budget holders’ latest forecasts of depreciation and cost of capital;

a transfer in of £3,080,000 from the Department for Culture, Media and Sport as its contribution to the National Meteorological Programme and Severe Weather Warning Service;

to increase Request for Resources 2 by £298,200,000 resource DEL and £89,000,000 capital DEL to reflect the costs of peacekeeping in Iraq, Afghanistan, the Balkans and the global prevention pool;

a transfer of £42,000,000 from RfR1 to RfR2 to cover depreciation and cost of capital costs.

In addition, there is a transfer within RfR1 from resource DEL indirect (non-cash) to resource DEL direct (near-cash) of £150,000,000.

The changes to resource DEL and capital DEL will lead to an increased net-cash requirement of £550,331,000.