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Department for Transport: DEL

Volume 699: debated on Tuesday 19 February 2008

My right honourable friend the Secretary of State for Transport (Ruth Kelly) has made the following Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Transport departmental expenditure limit (DEL) for 2007-08 will be increased by £584,299,000 from £13,105,578,000 to £13,689,877,000 and the administration budget will be increased by £5,142,000 from £289,384,000 to £294,526,000.

Within the DEL change, the impact on resources and capital, are as set out in the following table:

£'000

Change in DEL

New DEL

Voted

Non- Voted

Voted

Non- Voted

Total

Resource:

-115,508

86,931

6,335,982

560,918

6,896,900

Of which:

Administration

7,845

-2,703

293,026

1,500

294,526

Near cash in RDEL

62,232

79,191

5,852,661

717,593

6,570,254

Capital

35,651

605,744

5,473,487

1,711,286

7,184,773

LESS Depreciation*

9,174

-37,693

-348,535

-43,261

-391,796

Total

-70,683

654,982

11,460,934

2,228,943

13,689,877

*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.

Resource Change: Administration (total increase of £5,142,000)

Voted: total increase of £7,845,000.

RfR1

(i) Take-up of £3,642,000 near cash end-year flexibility for various pressures including the implementation of Eddington work, recruitment costs and building costs; and

(ii) A transfer of £4,203,000 from non voted near cash departmental unallocated provision to provide for opening budget allocations agreed in the 2007-08 Business Plan.

Non Voted: total decrease of £2,703,000.

(iii) Take-up of £1,500,000 near cash end-year flexibility for utilisation of a provision in respect of building dilapidations; and

(iv) A transfer of £4,203,000 to voted near cash administration provision.

Resource Change: Programme (total decrease of £33,719,000)

Voted: total decrease of £123,353,000

RfR1

(i) Take-up of £43,598,000 near cash end-year flexibility (including £17,500,000 from administration entitlement) for Crossrail;

(ii) A transfer of £500,000 near cash to the Scottish Executive for the Rail Environmental Benefit Procurement Scheme;

(iii) A reduction of £150,000,000 non cash Highways Agency impairments reclassified as annually managed expenditure;

(iv) A net transfer of £16,451,000 to non voted provision as follows:

a. £300,000 near cash from Power Shift to the Renewable Fuels Agency;

b. £17,587,000 from rail, including £7,740,000 non cash and £4,847,000 non cash switched to near cash (see (v) below); partially offset by:

c. £1,436,000 near cash increase to the Vehicle and Operator Services Agency enforcement;

(v) £20,000,000 of rail non cash headroom has been converted to near cash, permitted under Treasury guidelines, to fund the following:

a. £2,028,000 for concessionary travel;

b. £10,025,000 for shared services;

c. £3,100,000 for the Maritime and Coastguard Agency; and

d. a transfer of £4,847,000 to non voted provision included in (iv) b. above.

Non Voted: total increase of £89,634,000

(i) Take-up of £73,183,000 near cash end-year flexibility for the net operating losses of London and Continental Railways.

(ii) A net transfer of £16,451,000 from voted provision for:

a. £300,000 near cash for the Renewable Fuels Agency;

b. £4,847,000 near cash for the utilisation of the following provisions: pensions (£2,847,000); early retirement (£1,500,000); and an HM Revenue and Customs tax liability for the Maritime and Coastguard Agency (£500,000);

c. £5,000,000 near cash for shared services;

d. £7,740,000 non cash for London and Continental Railways (£6,217,000); Driver and Vehicle Licensing Agency cost of capital (£1,394,000); and towards the shared service project depreciation (£129,000); and

e. partially offset by £1,436,000 near cash transfer from the Driver and Vehicle Licensing Agency.

Capital Change: (total increase of £641,395,000)

Voted: total increase of £35,651,000

RfR1

(i) Take-up of £150,000,000 end year flexibility for a capital grant to the Greater London Authority to pass on to Transport for London to provide short term flexibility while the costs associated with Metronet’s administration remain uncertain.

(ii) Net transfer of £114,349,000 to non voted provision consisting of:

a. £58,439,000 from Network Grants to London and Continental Railways;

b. £59,951,000 from Local Transport Major Schemes; partially offset by:

c. £4,041,000 increase to the Vehicle and Operator Services Agency.

Non Voted: total increase of £605,744,000

(i) £304,000,000 reserve claim to part cover a notional charge (of £454,000,000 in total) scoring within capital DEL to reflect the marginal impact on public sector net debt in 2007-08 of costs relating to Metronet in the light of its move into administration.

(ii) Take-up of £187,395,000 end-year flexibility, comprising:

a. £150,000 for the remainder of the notional charge relating to Metronet, as referred to in (i) above; and

b. £37,395,000 for London and Continental Railways to provide cover for their capital expenditure.

Net transfer of £114,349,000 from voted provision consisting of:

a. £58,439,000 for London and Continental Railways to provide cover for their capital expenditure;

b. £35,000,000 for the integrated transport block;

c. £21,000,000 for UK Trustports;

d. £3,951,000 towards General Lighthouse Authority ship lease; partially offset by;

e. £4,041,000 to voted provision from Driver and Vehicle Licensing Agency receipts.