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 £2,033,379 from £33,561,172 to £35,594,551,000. 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 1,889,379 - 34,437,544 283,088 34,720,632 Near-Cash in RDEL 1,889,379 440,000 23,819,675 480,943 24,300,618 Capital 144,000 - 7,691,626 744 7,692,370 Depreciation* - - -6,618,451 -200,000 -6,818,451 Total 2,033,379 - 35,510,719 83,832 35,594,551
Near-Cash in RDEL
*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 changes to the resource and capital elements of the DEL arise from:
the take-up of normal resource end-year flexibility of £21,000,000 and capital resource end-year flexibility of £65,000,000;
resource transfers in from the Department for Environment, Food and Rural Affairs (Defra) of £4,863,000 as a contribution to the National Meteorological Programme and Severe Weather Warning Service, £200,000 from the Cabinet Office in respect of future funding arrangements for the expansion of the Parliamentary Counsel Office, and £42,525,000 from the Security & Intelligence Services Agency in respect of support service funding for GCHQ;
a resource transfer out of £149,000 to the Department of Culture, Media and Sport as a contribution to the Leeds Armouries Museum Pattern Room staffing costs, and a resource transfer of £4,000,000 out to the Department for Business, Enterprise and Regulatory Reform as a contribution to the global partnership against the spread of weapons and materials of mass destruction;
to use £55,000,000 of additional income that will be paid to the Consolidated Fund with a corresponding increase in direct RDEL available to the department;
to increase Request for Resources 2 by £1,315,000,000 resource near-cash DEL and £604,000,000 capital DEL to reflect the costs of peace-keeping in Iraq and Afghanistan;
to transfer £70,000,000 from voted capital DEL to non-voted near-cash resource DEL to cover planned cash release of provision payments;
to transfer £455,000,000 capital resource to direct resource within RfR1 relating to single-use military equipment (SUME) flexibility;
to recognise a grant-in-aid payment to the Royal Irish Benevolent Fund of £60,000 by increasing non-budget expenditure and reducing near-cash resource DEL.
The changes to resource DEL and capital DEL will lead to an increased net cash requirement of £2,158,439,000.