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Revenue and Customs: DEL

Volume 696: debated on Thursday 15 November 2007

My right honourable friend the Financial Secretary to the Treasury (Jane Kennedy) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, the HM Revenue and Customs total DEL will be increased by £76,487,000 from £4,547,630,000 to £4,624,117,000. Within the total 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 DEL

91,487

-15,00

4,146,645

393,013

4,539,658

Of which:

Administration budget*

92,487

-15,00

4,396,533

45,074

4,441,607

Near-cash in RDEL*

63,227

-15,00

3,770,975

427,161

4,198,136

Capital**

-

-

263,971

3,739

267,710

Less depreciation***

-

-

-183,251

-

-183,251

Total

91,487

-15,00

4,227,365

396,752

4,624,117

* 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.

** DEL includes items treated as resource in estimates and accounts but 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 change in the resource element of DEL arises from:

£44,500,000 administration costs, from the modernisation fund to modernise and transform HMRC;

£30,000,000 administration near-cash costs, from the DEL reserve to expand call centre capacity;

£1,587,000 administration near-cash costs transferred from the Cabinet Office in respect of Parliamentary Counsel Office funding;

£1,400,000 take-up of end-year flexibility (EYF) in accordance with the public expenditure outturn White Paper (Cm 7156). This is from programme expenditure EYF, agreed to be spent as administration costs; and

£1,000,000 programme near-cash expenditure transferred to the Serious Organised Crime Agency (SOCA).

The change in the administration budget arises from the changes detailed in the resource element above, excluding the £1,000,000 programme transfer to SOCA.