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Cabinet Office: DEL

Volume 699: debated on Tuesday 19 February 2008

My right honourable friend the Chancellor of the Duchy of Lancaster (Edward Miliband) has made the following Written Ministerial Statement.

Subject to parliamentary approval of the Spring Supplementary Estimate 2007-08, the Cabinet Office total departmental expenditure limit (DEL) has changed from the amount voted in the Winter Supplementary Estimate 2007-08.

As a result, the Cabinet Office total DEL has increased by £27,377,000 from £398,597,000 to £425,974,000.

The impact on resource DEL (REL) and capital DEL (CDEL) is set out in the following table:

£’000Winter Supplementary Estimate DELChangesSpring Supplementary Estimate New DEL

Voted

Non Voted

Total

Voted

Non Voted

Total

Voted

Non Voted

Total

Resource DEL

310,959

45,027

355,986

+1,659

-75

+1,584

312,618

44,952

357,570

Of which:

Administration Budget

217,058

-

217,058

-50,370

-

-50,370

166,688

-

166,688

Near cash in RDEL

265,844

45,027

310,871

+16,923

-75

+16,848

282,767

44,952

327,719

Capital DEL

78,869

100

78,969

+5,997

+75

+6,072

84,866

175

85,041

Depreciation**

-36,358

-

-36,358

19,721

-

19,721

-16,637

-

-16,637

Total DEL

353,470

45,127

398,597

+27,377

-

+27,377

380,847

45,127

425,974

** 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 in the Spring Supplementary Estimate 2007-08 compared to the Winter Supplementary Estimate 2007-08 are due to: drawdown on the reserve for V matched funding, take-up of resource DEL end-year flexibility to cover grants in the Office of the Third Sector, budgetary cover transfer to Department of Health to cover costs of the Office of the Parliamentary Counsel, reclassification of expenditure from administration to programme within RDEL, transfer of non cash to near cash within RDEL, a transfer from non cash RDEL to capital DEL, a transfer of non voted transfer from RDEL to non voted CDEL in respect of Executive NDPB (ENDPB), an increase in non operating appropriations in aid in CDEL reflecting a disposal of a fixed asset.

Changes in Resource DEL (RDEL)

£1,584,000 increase in the resource element of DEL arises from:

Drawdown on the Reserve

Drawdown for V matched funding for the Office of the Third Sector to cover grant expenditure increases RDEL and net cash requirement in the estimate by £4,729,000.

End-Year Flexibility (EYF)

Take-up of EYF to cover grants expenditure for necessary Third Sector projects increases grant expenditure in RDEL and net cash requirement by £3,300,000.

Outward budgetary cover transfer

A budgetary cover transfer to Department of Health to cover the costs of the Office of the Parliamentary Counsel (OPC) reduces RDEL and net cash requirement in the estimate by £370,000.

Transfers between budgets

A transfer from non cash administration to capital DEL to fund capital investment in IT projects including the Government Gateway Strategic Support Programme reduces RDEL by £6,000,000 and no change to net cash requirement.

A non-voted transfer of £75,000 from RDEL to CDEL to finance capital expenditure of ENDPB.

Change in Administration Budget (RDEL)

£50,370,000 decrease in the administration budget arises from:

£370,000 transfer to Department of Health;

£6,000,000 transfer from administration within non cash RDEL to capital DEL;

£10,500,000 reallocation from administration to programme within non cash; and

£33,500,000 reallocation from administration to programme within near cash DEL.

Change in Near Cash in RDEL

£16,848,000 increase in near cash in RDEL arises from:

£3,300,000 take-up of end-year flexibility;

£4,729,000 drawdown from the reserve;

£10,000,000 conversion from non cash to near cash;

£370,000 budgetary transfer to Department of Health;

£75,000 transfer of non voted to capital DEL;

£14,000 change in notional audit fee; and

£750,000 change in provisions

Changes in Capital DEL (CDEL)

£6,072,000 increase in the capital element of DEL arises from:

A transfer of £6,000,000 from non cash administration to capital DEL to fund additional pressures which have arisen within the department which relates to IT projects including the Government Gateway Strategic Support Programme.

Sale proceeds from the disposal of a minibus has increased non-operating appropriations in aid by £3,000 and reduced net cash requirement by the same amount.

A non-voted transfer of £75,000 from RDEL to CDEL to finance the capital expenditure of ENDPB.

Change in Depreciation

£19,721,000 decrease in depreciation arises from:

£10,000,000 conversion from non cash to near cash;

£6,000,000 conversion from non cash to capital DEL; and

£3,721,000 transfer to cost of capital.