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Treasury: DEL

Volume 689: debated on Tuesday 20 February 2007

My honourable friend the Financial Secretary to the Treasury (Mr John Healey) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, HM Treasury resource DEL will be reduced by £6,939,000 from £247,599,000 to £240,660,000. The administration budget will be reduced by £4,465,000 from £167,794,000 to £163,329,000. Within the DEL change, the impact on the voted and non-voted elements and near-cash are as set out in the following table:

ChangesNew DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource

1.000

-6,940,000

219,695,000

20,965,000

240,660,000

of which: Administration Budget*

-4,465,000

-

162,329,000

1,000,000

163,329,00

Near-cash in RDEL

-

-6,940,000

221,840,000

20,965,000

242,805,000

Capital**

-

-

7,200,000

-

7,200,000

Depreciation***

-

-

-7,676,000

-

-7,676,000

Total

1,000

-6,940,000

219,219,000

20,965,000

240,184,000

*The total of “Administration Budget” and “Near-cash” in RDEL 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 reduction in the resource element of the DEL arises from a machinery of government change transfer of £6,940,000 following the transfer of budgetary responsibility for the salaries and pensions of UK members of the European Parliament from the Treasury to the Cabinet Office, to align with the policy responsibility.

The net reduction in the administration budget arises from a transfer of £4,465,000 from RfR 1: “Raising the rate of sustainable growth and achieving rising prosperity and a better quality of life, with economic and employment opportunities for all” to RfR 2 “Cost-effective management of the supply of coins and actions to protect the integrity of coinage” to partially offset an increase in programme spending due to increased metal prices and increased demand for coinage.