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:
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.