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Written Statements

Volume 705: debated on Tuesday 25 November 2008

Written Statements

Tuesday 25 November 2008

Cabinet Office: Winter Supplementary Estimate

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

Subject to parliamentary approval of the winter supplementary estimate 2008-09, the Cabinet Office total departmental expenditure limit (DEL) will be decreased by £1,537,000 from £359,433,000 to £357,896,000.

The impact on resources and capital is set out in the following table:

£’000Main Estimate DELChangesWinter Supplementary Estimate New DEL

Voted

Non Voted

Total

Voted

Non Voted

Total

Voted

Non Voted

Total

Resource DEL

306,334

39,470

345,804

-1,653

-1,994

-3,647

304,681

37,476

342,157

Of which:

Administration Budget

214,882

-

214,882

-11,632

-

-11,632

203,250

-

203,250

Near cash in RDEL

260,372

39,470

299,842

+502

-879

-377

260,874

38,591

299,465

Capital DEL**

49,541

50

49,591

-1,000

+1,000

-

48,541

1,050

49,591

Depreciation*

-35,962

-

-35,962

+2,110

-

+2,110

-33,852

-

-33,852

Total DEL

319,913

39,520

359,433

-543

-994

-1,537

319,370

38,526

357,896

* 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.

** Capital DEL includes items treated as resource in estimates and accounts but which are treated as capital DEL in budgets.

The change in the resource element of DEL, a reduction of £3.647 million, comprises £2.357 million resulting from machinery of Government transfers of function and £1.290 million resulting from transfers of budgetary cover, both to other government departments.

There is no overall change to the capital element of DEL.

Changes in Resource DEL (RDEL)

The changes which result in a net decrease in Resource DEL of £3,647,000 are as follows:

Machinery of Government transfers

The transfer of Government Skills to the Department for Innovation, Universities and Skills (DIUS) reduces non-cash Resource DEL by £1,600,000.

The transfer of the e-Delivery Team to the Department for Work and Pensions (DWP) reduces Resource DEL by £1,030,000 comprising a reduction in near cash of £475,000 and in non-cash of £555,000.

The transfer of the Statistics Review Team from HM Treasury increases Resource DEL and Near Cash Requirement in the Estimate by £273,000.

Budget cover transfers outwards

Budget cover transfers to 13 government departments to cover the costs of the Office of the Parliamentary Counsel reduces Resource DEL and Net Cash Requirement in the Estimate by £7,030,000.

A budget cover transfer from the Office of the Third Sector to Government Offices in the Department for Communities and Local Government reduces Resource DEL and Net Cash Requirement in the Estimate by £725,000.

A budget cover transfer to HM Treasury to cover the costs in the Prime Minister’s Delivery Unit reduces Resource DEL and Net Cash Requirement in the Estimate by £250,000.

A budget cover transfer to HM Treasury to cover the expenditure of the Centre of Expertise in Sustainable Procurement reduces Resource DEL and Net Cash Requirement in the Estimate by £45,000.

Budget cover transfers inwards

Budget cover transfers from 16 government departments to cover the costs of i Monitoring Security Co-ordination Centre (iMSCC) increases Resource DEL and Net Cash Requirement in the Estimate by £760,000.

A budget cover transfer from the Security and Intelligence Agencies to cover the costs of the Information Assurance Technical Programme increases Resource DEL and Net Cash Requirement in the Estimate by £6,000,000.

Transfers between Voted and Non-Voted Resource and Capital Budget

The Office of the Third Sector has arranged to transfer £1 million of its capital budget in order to cover the increased requirement of the capital grant programmes of its executive non-departmental public body, Capacity Builders (UK) Limited. By way of compensation, the Office of the Third Sector has arranged for Capacity Builders (UK) Limited to transfer £1.994 million of its resource budget to cover programme expenditure to be incurred by the Office of the Third Sector. The impact on the overall DEL position and Net Resource and Net Cash Requirement will be neutral.

Charity Commission: Winter Supplementary Estimate

My honourable friend the Parliamentary Secretary, Cabinet Office (Kevin Brennan) has made the following Written Ministerial Statement.

Plans to change the Charity Commission’s departmental expenditure limit (DEL) and administration budget for 2008-09.

Subject to parliamentary approval of any necessary supplementary estimate, the Charity Commission DEL will be increased by £1,000 from £30,971,000 to £30,972,000 and the administration budget will be increased by £1,000 from £30,971,000 to £30,972,000. Within the DEL change, the impact on resources is as set out in the following table:

New DEL£’000

Change

Voted

Non-voted

Total

Resource DEL

1

30,972

0

30,972

of which:

Administration budget*

1

30,972

0

30,972

Near cash in DEL

1

29,822

29,822

Capital

0

700

0

700

Depreciation**

0

-820

0

-820

Total

1

30,852

0

30,852

* The total of “administration budget” and “near cash in Resource DEL” may be greater than total resource DEL due to the definitions overlapping

** Depreciation, which forms part of resource DEL, is excluded from 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 the DEL arises from:

a “token” increase to account for the increased Appropriations in Aid arising from project funding by the Foreign and Commonwealth Office for the continuation of the International Outreach project, which aims to provide guidance and training in areas of the world where the regulatory infrastructure is not as developed as in the UK.

Correction to Commons Written Answer

My honourable friend the Minister of State, Department of Health (Ben Bradshaw) has made the following Written Ministerial Statement.

I regret that the Written Answer I gave the honourable Member for South Cambridgeshire on 22 February, Official Report, cols. 1069-71W, included a reference to a write-off of £40 owed by Annette Craze that was incorrect. Further investigation has shown that Annette Craze did not owe any money and should not therefore have been referred to in the reply.

Department for Business, Enterprise and Regulatory Reform: Winter Supplementary Estimate

My right honourable friend the Minister of State for Employment Relations and Postal Affairs (Pat McFadden) has made the following Written Ministerial Statement.

Subject to parliamentary approval of the necessary supplementary estimate, the Department for Business, Enterprise and Regulatory Reform’s DEL will be reduced by £11,157,000 from £3,379,070,000 to £3,367,913,000 and the administration budget will be increased by £358,000 from £332,173,000 to £332,531,000.

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

ChangeNew DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource (£000)

34,426

-28,583

-497,986

2,654,880

2,156,894

Of which:

Administration* budget

358

332,531

332,531

Near cash in Resource DEL*

19,398

-13,555

-645,630

2,693,147

2,047,517

Capital (£000)

-91,601

74,601

-763,999

1,975,018

1,211,019

Less Depreciation* (£000)

-11,327

11,327

-48,780

-24,684

-73,464

Total (£000)

-68,502

57,345

-1,310,765

4,605,214

3,294,449

*The total of the “administration budget” and “near-cash in resource DEL” 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 change in the resource element of the DEL arises from:

RfR1

increase of £825,000 in respect of an award from the Financial Inclusion Fund for Face-to-Face Debt Advice;

transfer of £4,000,000 from the Ministry of Defence in respect of Global Threat Reduction;

virement of £17,088,000 from Non-Voted to Voted expenditure in respect of the Regional Development Agencies reflecting reduced contributions from other government departments;

virement of £2,504,000 from Voted to Non-Voted expenditure in respect of a reallocation from the London Development Agency to the Regional Development Agencies;

virement of £1,000,000 from Voted expenditure on Business Link Marketing to Non-Voted expenditure in respect of the Regional Development Agencies;

virement of £16,000,000 from Non-Voted capital expenditure in respect of the Regional Development Agencies to the Non-Voted resource Departmental Unallocated Provision;

transfer of £16,000,000 from the Non-Voted resource Departmental Unallocated Provision to the Department for Work and Pensions in respect of Cold Weather Payments;

transfer of £40,000 from the Non-Voted Departmental Unallocated Provision to the Cabinet Office for the Security Monitoring and Co-ordination Centre;

virement of £115,000 from Non-Voted to Voted expenditure in respect of a reduction in the gross expenditure and receipts of Postwatch as a result of the transfer of the Royal Mail Quality of Service review to Postcomm;

virement of £14,300,000 from the Non-Voted Resource Departmental Unallocated Provision to Voted Insolvency Service Non-Cash;

virement of £728,000 from the Non-Voted resource Departmental Unallocated Provision to Voted Non-Cash Provisions in respect of Icelandic Trawlermen compensation; and

virement of £516,000 from the Non-Voted resource Departmental Unallocated Provision to Voted Near-Cash in respect of British Shipbuilders Liabilities;

Also within the change to resource DEL, the changes to the Administration budget are (RfR1):

transfer of £1,463,000 from the Cabinet Office in respect of the Parliamentary Counsel Office;

transfer of £360,000 to the Department for Environment, Food and Rural Affairs in respect of the Office of Climate Change;

transfer of £45,000 to the Office of Government Commerce (Cabinet Office) for the Centre of Expertise for Sustainable Development; and

reclassification of £700,000 from Voted Administration to Non-Voted programme expenditure in respect of the Regional Development Agencies' Business Links;

The change in the Capital element of the DEL arises from:

RfR1

virement of £39,501,000 from Voted to Non-Voted expenditure in respect of a reallocation from the London Development Agency to the Regional Development Agencies;

virement of £16,000,000 from Non-Voted capital expenditure in respect of the Regional Development Agencies to the Non-Voted resource Departmental Unallocated Provision;

transfer from Non-Voted Regional Development Agencies expenditure of £1,000,000 to the Department for Environment, Food and Rural Affairs in respect of increased Warm Front Activity;

virement of £27,000,000 from Voted Environmental Transformation Fund expenditure to the Non-Voted Departmental Unallocated Provision;

virement of £27,400,000 from Voted Enterprise Capital Fund expenditure to the Non-Voted Departmental Unallocated Provision;

virement of £2,300,000 from Non-Voted expenditure to Voted in respect of increased recoveries of Non-Voted Launch Investment receipts and increased Voted expenditure by the Advisory, Conciliation and Arbitration Service.

Postal Services Commission

Subject to parliamentary approval of the necessary supplementary estimate, the Postal Services Commission DEL will be increased by £1,000 from £151,000 to £152,000 and the administration budget will be increased by £1,000 from £1,000 to £2,000. Within the DEL change, the impact on Resources and Capital is as set out in the following table:

New DEL

£'000

Change

Voted

Non-voted

Total

Resource DEL

1

2

0

2

Of which *

Administration budget

1

2

0

2

Near-cash in RDEL

1

-538

0

-538

Capital DEL**

0

150

0

150

Depreciation

0

-530

0

-530

Total

1

-378

0

-378

* The total of the “administration budget” and “near-cash in resource DEL” 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 change in the resource element of the DEL arises from a token increase in administration costs. The token increase is necessary to bring to Parliament's attention an increase in administration expenditure relating to the Royal Mail Quality of Service Review (£114,000) offset by increased appropriations-in-aid (£114,000) from Royal Mail.

Office of Gas and Electricity Markets

Subject to parliamentary approval of the necessary supplementary estimate, the Office of Gas and Electricity Markets’s DEL will be increased by £1,000 from £1,651,000 to £1,652,000 and the administration budget will be increased by £1,000 from £701,000 to £702,000.

New DEL

£’000

Change

Voted

Non-voted

Total

Resource DEL

1

702

0

702

Of which:

Administration budget

1

702

0

702

Near-cash in RDEL

1

-93

700

607

Capital DEL**

0

950

0

950

Depreciation

0

-1,000

0

-1,00

Total

1

652

0

652

*The total of the “administration budget” and “near-cash in resource DEL” 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 change in the resource element of the DEL arises from a token increase in administration costs. The token increase is necessary to bring to Parliament's attention an increase in administration costs of £1,499,000 offset by an increase in appropriations in aid of £1,499,000. The increase in administration costs is as a result of additional unplanned expenditure on a Competition Act investigation, the offshore transmission tender process and the energy supply markets probe.

Department for Children, Schools and Families: Winter Supplementary Estimate

My right honourable friend the Secretary of State for Children, Schools and Families (Ed Balls) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Children, Schools and Families departmental expenditure limit (DEL) will be decreased by £16,761,000 from £52,739,088,00 to £52,722,327,000; the administration cost budget will be decreased by £2,364,000 from £189,900,000 to £187,536,000, the Office for Standards in Education, Children’s Services and Skills (Ofsted) which has a separate estimate and DEL, will be increased by £485,000 from £180,731,000 to £181,216,000. The administration cost budget will be increased by £485,000 from £28,236,000 to £28,721,000.

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

ResourcesCapital***

 

Change

New DEL

Of which:

Change

New DEL

Of which:

Voted

Non-voted

Voted

Non- voted

 

£’000

£’000

£’000

£’000

£’000

£’000

£’000

£’000

RfR 1

-16,811

45,419,824

44,202,195

1,217,629

-2,000

5,712,566

4,593,981

1,118,585

RfR 2

2,050

1,294,912

1,265,396

29,516

0

295,025

295,025

0

DCSF Total

-14,761

46,714,736

45,467,591

1,247,145

-2,000

6,007,591

4,889,006

1,118,585

Ofsted

485

180,235

180,235

0

0

981

981

0

Sub Total

-14,276

46,894,971

45,647,826

1,247,145

-2,000

6,008,572

4,889,987

1,118,585

**Of which Admin Budget

-1,879

216,257

216,257

0

0

0

0

0

Near-cash in RDEL

-14,276

46,931,221

45,647,289

1,283,932

0

0

0

0

Depreciation*

101

-12,057

-8,599

-3,458

0

0

0

0

Total

-14,175

46,882,914

45,639,227

1,243,687

-2,000

6,008,572

4,889,987

1,118,585

*Depreciation, which forms part of resource DEL, is excluded from the total DEL, in the table above, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

**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.

***Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.

Within the Administration Cost budget changes, the impact is set out in the following table:

DfESOriginalChangeRevised

 

£’000

£’000

£’000

DfES (RfR1)

189,900

-2,364

187,536

Ofsted

28,236

485

28,721

Total

218,136

-1,879

216,257

Department for Children, Schools and Families

Resource DEL

The decrease in the resource element of the DEL of £14,761,000 arises from a decrease in the voted element of the resource DEL of £172,838,000 and an increase of £158,077,000 in the non-voted element of resource DEL mainly in the department’s non-departmental public bodies.

Voted Resource DEL

The £172,838,000 decrease in the voted element of the resource DEL arises from:

RfR1

A movement of £450,000 from RfR2 in respect of Special Education Needs Programmes.

A movement of £55,601,000 from non-voted unallocated provision for Current Grants to support schools and teachers.

A movement of £10,369,000 from non-voted unallocated provision for Current Grants to support Youth programmes.

A transfer from the Cabinet Office £411,000 administration for the Parliamentary Council Office.

A transfer to the Cabinet Office of £40,000 for ISMCC.

A transfer to HM Treasury of £45,000 administration for the Centre of Expertise in Sustainable Procurement.

A transfer to the Department for Work and Pensions of £4,000,000 administration for the lease settlement for Caxton House.

A transfer to the Home Office of £432,000 for Anti-social behaviour and Crime Prevention.

A transfer to the Ministry of Justice of £1,000,000 for Implementation of the Children and Adoption Act.

A transfer to the Department for Innovation, Universities and Skills of £3,655,000 for Vocational Reform.

A transfer to the Home Office of £6,000,000 for settlements relating to the Hillingdon judgment 2003.

A movement of £197,031,000 to non-voted resource DEL to support the department’s non-departmental public bodies.

RfR2

A movement of £450,000 to RfR1 in respect of Special Education Needs Programmes.

A movement of £2,500,000 from non-voted unallocated provision for Sure Start.

A movement of £29,516,000 to non-voted resource DEL in respect of the Children’s Workforce Development Council.

Non-voted resource DEL

The £158,077,000 increase in Non-voted resource DEL arises from:

A movement of £226,547,000 from voted resource DEL to support the department’s non-departmental public bodies.

A movement of £55,601,000 from non-voted unallocated provision for Current Grants to support schools and teachers.

A movement of £10,369,000 from non-voted unallocated provision to voted for Current Grants to support Youth programmes.

A movement of £2,500,000 from non-voted unallocated provision to voted for Sure Start.

Capital DEL

The decrease in the capital element of the DEL of £2,000,000 arises from a £57,801,000 increase in the voted element of capital DEL and a decrease of £59,801,000 in the non-voted element of capital DEL.

Voted Capital DEL

The £57,801,000 increase in the voted element of the capital DEL arises from:

RfR1

A movement of £30,000,000 from non-voted unallocated provision for to support schools and teachers.

A movement of £28,019,000 from non-voted unallocated provision for Capital Grants to support Children and Families.

A movement of £218,000 to non-voted resource DEL to support the department’s non-departmental public bodies.

Non-voted Capital DEL

The £59,801,000 decrease in the non-voted element of capital DEL arises from:

RFR1

A transfer to the Department for Work and Pensions of £2,000,000 for the Government Connect Programme.

A movement of £30,000,000 from non-voted unallocated provision to voted to support schools and teachers.

A movement of £28,019,000 from non-voted unallocated provision to voted for Capital Grants to support Children and Families.

A movement of £218,000 from voted resource DEL to support the department’s non-departmental public bodies.

Administration Cost Budget

Reclassification of £1,270,000 from programme expenditure to administration for Respect administration costs.

A transfer from the Cabinet Office £411,000 administration for the Parliamentary Council Office.

A transfer to HM Treasury of £45,000 administration for the Centre of Expertise in Sustainable Procurement.

A transfer to Department for Work and Pensions of £4,000,000 administration for the lease settlement for Caxton House.

Office for Standards in Education, Children’s Services and Skills

Voted Resource DEL

Following the machinery of government changes a transfer of £485,000 from the Ministry of Justice for the inspection of the Children and Families Court Advisory and Support Service.

A movement of £8,051,000 from non-voted unallocated provision for implementation of the Childcare Act 2006 and the requirements of the better regulation executive.

Non-voted resource DEL

A movement of £8,051,000 to voted provision for implementation of the Childcare Act 2006 and the requirements of the better regulation executive.

Administration Cost Budget

Following the machinery of government changes a transfer of £485,000 from the Ministry of Justice for the inspection of the Children and Families Court Advisory and Support Service.

Department for Innovation, Universities and Skills: Winter Supplementary Estimate

My right honourable friend the Secretary of State for Innovation, Universities and Skills (John Denham) has made the following Written Statement:

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Innovation, Universities and Skills departmental expenditure limit (DEL) will be increased by £19,360,000 from £18,368,379,000 to £18,387,739,000 and the administration budget will be increased by £1,733,000 from £70,000,000 to £71,733,000.

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

£’000ChangeNew DEL

Voted

Non-Voted

Voted

Non-Voted

Total

Resource DEL

-17,491

36,751

-4,050,840

20,448,611

16,397,771

Of which:

Administration Budget †

1,733

0

71,733

0

71,733

Near Cash in Resource DEL †

-19,091

36,751

-5,254,711

20,292,877

15,038,166

Capital DEL ††

-234,011

234,111

-161,169

2,151,137

1,989,968

Less Depreciation †††

-1,413

0

-4,618

-141,753

-146,371

Total DEL

-252,915

270,862

-4,216,627

22,457,995

18,241,368

† 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.

†† 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 in the table above, since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

Resource DEL

The increase in the resource element of the DEL of £19,260,000 arises from a decrease in the voted element of resource DEL of £17,491,000 and an increase of £36,751,000 in the non-voted element of resource DEL.

Voted Resource DEL

The £17,491,000 decrease in the voted element of resource DEL arises from:

RfR1

The take-up from the Departmental Unallocated Provision (DUP) of £5,000,000 for Part Time Student Support.

A machinery of government transfer from the Cabinet Office of £1,600,000 for Government Skills.

A transfer from the Cabinet Office for £42,000 for Parliamentary Counsel costs.

A transfer from the Ministry of Justice of £13,912,000 for Offender Learning.

A transfer from the Department for Children, Schools and Families of £3,655,000 for Vocational Qualifications reform.

An increase in voted receipts for the Higher Education Funding Council for England of £1,142,000 from the Department for Children, Schools and Families, offset by an increase in the Higher Education Funding Council for England non-voted resource DEL.

An increase in voted receipts for the Student Loans Company of £1,700,000 from the Department for Children, Schools and Families, offset by an increase in the Student Loans Company non-voted resource DEL.

An increase in voted receipts of £50,000 for receipts from the Department of Health for Health and Wellbeing at Work, offset by an increase in the Investors in People UK non-voted resource DEL.

A net decrease in voted receipts for the Learning and Skills Council of £39,289,000, offset by a net decrease in the Learning and Skills Council non-voted resource DEL.

An increase in central administration costs of £91,000 for an element of the Comprehensive Spending Review 2007 settlement omitted from the Main Estimate.

A net movement from non-voted resource DEL of £7,921,000 consisting of increases to voted resource DEL for Student Support (£7,500,000), Foundation Degrees (£711,000), International programmes (£210,000) and a decrease to Technology Strategy (£500,000).

RfR2

A movement to non-voted resource DEL of £86,109,000 for the Higher Education Funding Council for England (£55,000,000) and the Research Councils (£31,109,000).

Non-voted Resource DEL

The £36,751,000 increase in non-voted resource DEL arises from:

A movement to RfR1 voted resource DEL of £5,000,000 for the take-up from the Departmental Unallocated Provision (DUP) for Part Time Student Support.

An increase in the Higher Education Funding Council for England non-voted resource DEL of £1,142,000 offset by an increase in voted receipts for the Higher Education Funding Council for England from the Department for Children, Schools and Families.

An increase in the Student Loans Company non-voted resource DEL of £1,700,000, offset by an increase in voted receipts for the Student Loans Company from the Department for Children, Schools and Families.

An increase in the Investors in People non-voted resource DEL of £50,000, offset by an increase in voted receipts from the Department of Health for Health and Wellbeing at Work.

A net decrease in the Learning and Skills Council non-voted resource DEL of £39,289,000, offset by a net decrease in voted receipts for the Learning and Skills Council.

A net movement to RfR1 voted resource DEL of £7,921,000 consisting of increases to voted resource DEL for Student Support (£7,500,000), Foundation Degrees (£711,000), International programmes (£210,000) and a decrease to voted resource DEL for Technology Strategy (£500,000).

A movement to non-voted resource DEL of £86,109,000 from RfR2 voted resource DEL for the Higher Education Funding Council for England (£55,000,000) and for the Research Councils (£31,109,000).

A transfer to the Cabinet Office of £40,000 for the Government Security Zone.

Capital DEL

The increase in the capital element of the DEL of £100,000 arises from a decrease in the voted element of capital DEL of £234,011,000 and an increase of £234,111,000 in the non-voted element of capital DEL.

Voted Capital DEL

The £234,011,000 decrease in the voted element of capital DEL arises from:

RfR1

An increase in departmental capital costs of £100,000 for an element of the Comprehensive Spending Review 2007 settlement omitted from the Main Estimate.

RfR2

An increase in voted receipts for the Biotechnology and Biological Sciences Research Council of £4,900,000, offset by an increase in the Biotechnology and Biological Sciences Research Council non-voted capital DEL.

A movement to non-voted capital DEL of £229,211,000 from voted capital DEL for the Higher Education Funding Council for England (£190,000,000) and for the Research Councils (£39,211,000).

Non-voted Capital DEL

The £234,111,000 increase in the non-voted element of capital DEL arises from:

An increase in the Biotechnology and Biological Sciences Research Council non-voted capital DEL of £4,900,000, offset by an increase in voted receipts for the Biotechnology and Biological Sciences Research Council.

A movement from RfR2 voted capital DEL of £229,211,000 to non-voted capital DEL for the Science and Research Investment Fund (£190,000,000) and for the Research Councils (£39,211,000).

Administration Budget

RfR1

The £1,733,000 increase within the Administration Budget arises from:

A machinery of government transfer from the Cabinet Office of £1,600,000 for Government Skills.

A transfer from the Cabinet Office for £42,000 for Parliamentary Counsel costs.

An increase in central administration costs of £91,000 for an element of the Comprehensive Spending Review 2007 settlement omitted from the Main Estimate.

Department for International Development: Winter Supplementary Estimate

My right honourable friend the Secretary of State for the Department for International Development (Douglas Alexander) has made the following Written Ministerial Statement.

As a consequence of budgetary transfers associated with the winter supplementary estimates, the Department for International Development’s total departmental expenditure limit will be reduced by £1,377,000 from £5,737,828,000 to £5,736,451,000. Within the total DEL change, the impact on resource and capital is set out in the following table:

Change (£,000)New DEL (£,000)

Voted

Non Voted

Voted

Non Voted

Total

Resource DEL

-

-1,377

4,010,309

857,142

4,867,451

Of which:*

Administration Budget

-

- 45

162,102

853

162,955

Near-cash in RDEL

-

- 1,377

3,921,309

857,142

4,778,451

Capital DEL

-

-

881,000

10,000

891,000

Less Depreciation**

-

-

- 22,000

-

- 22,000

Total DEL

-

- 1,377

4,869,309

867,142

5,736,451

* 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.

** Depreciation, which forms part of the resource DEL, is excluded from the total DEL, since capital DEL includes capital spending and to include depreciation of these assets would lead to double counting.

The net change in the resource element of DEL arises from:

Additions

£1.97 million transferred to DfID from the Ministry of Defence in relation to Stabilisation Aid Fund projects in Iraq, and

£738,000 transferred to DfID from the Foreign & Commonwealth Office in relation to Stabilisation Aid Fund funded projects in Afghanistan.

Reductions

£40,000 transferred from DfID to the Cabinet Office in relation to the funding of the government security zone;

£4 million transferred from DfID to the Foreign & Commonwealth Office in relation to the Returns & Reintegration Fund; and

£45,000 transferred from DfID to HM Treasury as a contribution to the Office for Government Commerce’s project, Centre of Expertise in Sustainable Procurement.

There are no changes in the capital element of DEL.

Department for Transport: Winter Supplementary Estimate

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

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Transport departmental expenditure limit (DEL) for 2008-09 will be decreased by £16,835,000 from £13,255,844,000 to £13,239,009,000 and the administration budget will be increased by £304,000 from £281,622,000 to £281,926,000.

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

£’000

Change

New DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource

24,941

-24,314

5,930,504

425,633

6,356,137

Of which:

Administration budget

349

-45

281,876

50

281,926

Near-cash in RDEL

13,341

-12,714

5,448,439

621,698

6,070,137

Capital

88,338

-98,300

6,133,418

1,149,811

7,283,229

Depreciation(1)

0

-7,500

-367,765

-32,592

-400,357

Total

113,279

-130,114

11,696,157

1,542,852

13,239,009

(1) 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 £304,000)

Voted: total increase of £349,000

RfR1

Near Cash transfer of £349,000 from other government departments as follows: from the Cabinet Office for Parliamentary Counsel costs (£313,000); and from the Department for Communities and Local Government to cover staff costs in Traffic Management (£36,000); and

A £45,000 transfer from non voted near cash administration provision offset by a £45,000 transfer to the Office of Government Commerce for the Centre of Excellence for Sustainable Procurement.

Non Voted: total decrease of £45,000.

Transfer of £45,000 to administration near cash voted provision.

Resource Change: Programme (total increase of £323,000)

Voted: total increase of £24,592,000

RfR1

Treasury agreed near cash reinstatement of the £7,080,000 abatement of Transport for London’s borrowing costs in respect of Metronet that were not avoided in 2008-09 due to the delay in Metronet leaving administration;

A net transfer of £24,269,000 from non voted provision as follows:

£3,800,000 near cash for Vehicle & Operator Services Agency Heavy Good Vehicle enforcement works;

£3,139,000 near cash for Rail’s subsidy to Train Operating Companies (£2,559,000) and other rail services (£580,000);

£2,000,000 near cash for freight grants:

£2,500,000 near cash for continuous insurance enforcement;

£1,000,000 near cash for Bus Passenger Champion;

£200,000 near cash for travel and transport direct government franchise;

£40,000 near cash for Central Administration for subsequent transfer to the Cabinet Office; and

£11,600,000 non cash for cost of capital for Humber Bridge; partially offset by

£10,000 near cash transferred to non voted provision in respect of utilisation of the rail provision; and

A transfer of £6,757,000 to other government departments as follows:

£6,717,000 to the Scottish Executive for Scottish rail services; and

£40,000 to the Cabinet Office for the Security, Monitoring and Co-ordination Centre.

Non-Voted: total net decrease of £24,269,000

£24,269,000 transferred to voted provision, as detailed above.

Capital Change: (total decrease of £9,962,000)

Voted: total increase of £88,338,000 RfR1

A transfer of £98,300,000 from non voted provision as follows:

£75,000,000 to increase grants to London Underground Ltd;

£10,300,000 for the Highways Agency;

£6,000,000 for Cycling England;

£3,300,000 from British Transport Police Authority to Network Grant;

£2,000,000 for the Blue Badge Scheme;

£1,500,000 for Vehicle & Operator Services Agency Heavy Goods Vehicle enforcement works; and

£200,000 for the Air Accident Investigation Branch’s additional hangar refurbishment work.

Partially offset by transfer of £9,962,000 to the Scottish Executive for rail services.

Non-Voted: total decrease of £98,300,000

£98,300,000 provision transferred to voted provision.

Department of Health: Winter Supplementary Estimate

My honourable friend the Minister of State, Department of Health (Ben Bradshaw), has made the following Written Ministerial Statement.

The Department of Health's element of the departmental expenditure limit (DEL) will be reduced by £4,630,000 from £98,570,061,000 to £98,565,431,000. The administration cost limit remains unchanged at £219,163,000. Subject to the necessary supplementary estimate, the Food Standards Agency DEL will increase by £1,000 from £137,719,000 to £137,720,000 and the administration cost limit will increase by £1,000 from £50,439,000 to £50,440,000. The overall DEL, including the Food Standards Agency, will reduce by £4,629,000 from £98,707,780,000 to £98,703,151,000. The impact on resource and capital are set out in the following table.

ChangeNew DEL

Voted

Non-voted

Voted

Non-voted

Total

£ million

£ million

£ million

£ million

£ million

Department of Health

Resource DEL

0

-4,110

94,444.365

-589.046

93,855.319

of which:

Administration budget*

0

219.163

219.163

Near-cash in Resource DEL

0

-4,110

90,030.872

645.078

90,675.950

Capital DEL

0

-0.520

1,932.811

2,777.301

4,710.112

Total Department of Health DEL

0

-4.630

96,377.176

2,188.255

98,565.431

Depreciation**

0

0

-785.594

-59.400

-844.994

Total Department of Health spending (after adjustment)

0

-4.630

95,591.582

2,128.855

97,720.437

Food Standards Agency

Resources

-0.399

136.689

136.689

of which:

Administration budget*

0.001

50.440

50.440

Near-cash in Resource DEL

-0.399

133.950

0.700

134.650

Capital

0.400

1.031

1.031

Total Food Standards Agency DEL

0.001

137.320

137.720

Depreciation**

-1.955

-1.955

Total Food Standards Agency spending (after adjustment)

0.001

135.765

135.765

* The total of “administration budget” and “near cash in resource DEL” figures may well be greater than the total resource DEL, due to definitions overlapping.

** Depreciation, which forms part of resource DEL, is excluded from the total DEL since the capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

The Department of Health DEL has reduced by £4,630,000 made up of:

a transfer to the Office of the Parliamentary Commissioner for Administration and the Health Service Commissioner for England to allow for the change in responsibility for handling NHS complaints.

The Department of Health’s administration cost limit remains unchanged at £219,163,000.

The change to the Food Standards Agency element of the DEL is due to:

a transfer of £400,000 from programme into capital increasing it from £631,000 to £1,031,000 to fund infrastructure investment; and

a token increase in the FSA’s administration cost.

Disabled People: Independent Living Strategy

My right honourable friend the Parliamentary Under-Secretary of State for Work and Pensions (Jonathan Shaw) has made the following Ministerial Statement.

On 3 March, the Government published the five-year cross-Government Independent Living Strategy. The strategy sets out a series of government commitments aimed at ensuring that disabled people have choice and control over the support they need to live their everyday lives.

The strategy was produced in partnership with disabled people, and we need to ensure that disabled people are actively involved in making the strategy a reality and checking that good progress is being made. Consequently, the launch of the strategy saw the start of a consultation to seek views on how best to do this.

The consultation closed on 20 June, and I am pleased to announce that I am today placing copies of the Government’s response to this consultation in both House Libraries.

Following the consultation, and the further involvement of disabled people in the development of the Government’s response, the Government have decided to implement the following steps to make sure disabled people are actively involved in the implementation and monitoring of the strategy:

establish an Independent Living Scrutiny Group to review progress on implementing the strategy;

develop a web-based and print resource to support disabled people’s involvement in local strategic partnership boards;

work with Equality 2025 to look at how best to use and develop existing networks to form a “network of networks”, creating a two-way channel for communication between the Government and disabled people;

examine some of the options, for example, specific courses suggested by respondents for building leadership capacity; and

work to help disabled people’s organisations benefit more from new opportunities to build capacity in the third sector.

The Government’s response will be available on the Office for Disability Issues website later today at http://www.odi.gov.uk/working/independentlivingstrategy.asp.

ECOFIN

My honourable friend the Economic Secretary to the Treasury (Ian Pearson) has made the following Written Ministerial Statement.

On 21 November 2008, I represented the UK at the Budget Economic and Financial Affairs Council (ECOFIN).

Finance Ministers agreed to adopt preliminary draft amending budgets 10 (as amended by the Commission during the course of negotiations) and 11 to the 2008 EC budget. These amend the 2008 budget respectively to reflect latest implementation capacity, thus reducing the level of funding required from member states in 2008, and to mobilise the EU solidarity fund for Cyprus following the recent drought there.

Finance Ministers agreed to adopt amending letters 2 (as amended by the Commission to include budgetary aspects relating to the proposed food facility for developing countries), and 3 to the preliminary draft budget for 2009. These reflected the latest information on agricultural market prices and other developments, and a budgetary transfer to cover the costs of a new reflection group as called for by the October European Council.

During a conciliation meeting between the Council and the European Parliament, agreement was reached on the 2009 EC budget and on the financing for the proposed food facility. The agreement establishes total payment levels of €116.1 billion (0.89 per cent of EU GNI). The European Parliament is scheduled to vote on its own Second Reading on 18 December, after which the 2009 EC budget will be formally adopted.

Five joint statements relating to the budget were also agreed at budget ECOFIN. These concerned the financing of the food facility, the implementation of cohesion policy and EU agencies. The Government are supportive of these statements, which affirm the co-ordination and visibility of Community development assistance and call for sound financial management and budget discipline in the areas that they concern.

Health: Working-age Population

My right honourable friend the Secretary of State for Work and Pensions (Rt. Hon. James Purnell) has made the following Statement.

My right honourable friend the Secretary of State for Health (Alan Johnson) and I have today published the Government’s response to Dame Carol Black’s review of the health of Britain’s working-age population, Working for a Healthier Tomorrow.

Dame Carol’s review, published on 17 March 2008, built upon the growing evidence that work is generally good for health and that the mounting costs of ill health are unacceptable, whether for individuals and families, for businesses, or for society as a whole.

Her analysis brought into focus, as never before, the scale of the economic cost of ill health and its impact not just on work but on human life. She laid the foundation for a consensus around a new vision for health and work, setting out radical and far- reaching proposals to prevent illness; make early access to work-related health support available to all; and improve the health of the workless so that everyone with the potential to work has the support they need to do so.

Today we are responding in full to Dame Carol’s recommendations. Our response Improving Health and Work: Changing Lives sets out our proposals. It includes a series of pilots and programmes with the potential to redefine the ambition of health and employment support in Britain, shifting the focus of welfare beyond helping people into work to helping them stay there, and further widening the focus of national healthcare from treatment to prevention and early intervention.

Our proposals include:

changing the paper-based “sick note” to an electronic “fit note”;

piloting a “Fit for Work” service;

creating a National Centre for Working-Age Health and Well-being;

establishing a network of Health, Work and Well-being Co-ordinators;

introducing an occupational health helpline;

extending NHS Plus; and

a review of the health and well-being of the NHS.

Dame Carol set out a challenging vision for improving the health of the working-age population. Ultimately, responsibility rests with a range of people: government; employers; trade unions; healthcare professionals; and individuals themselves. Today, with the publication of our response, we are setting out the Government’s real commitment to this agenda and how we will play our part.

Copies of Improving Health and Work: Changing Lives will be placed in the Library of the House.

Higher Education: Loans, Grants and Fees

My right honourable friend the Minister of State for Higher Education and Intellectual Property (David Lammy) has made the following Written Ministerial Statement.

On 29 October 2008, my right honourable friend the Secretary of State for Innovation, Universities and Skills announced that the Government are making extra money available, totalling £100 million in steady state, to meet the higher than expected demand for student support in 2009-10 and beyond. This will enable the Government to maintain their intention that two-thirds of eligible students should receive either the full grant of £2,906 or a partial grant in 2009-10. We also expect that our commitment for one-third of eligible students to receive a full grant will be exceeded—under the new package, we anticipate that 40 per cent of students may be eligible for a full grant.

This means that students with household incomes ranging from £18,360 to £50,020 will be eligible for higher levels of grant than in 2007-08, while those with incomes ranging from £18,360 to £57,708 will be eligible for a more generous package of grant and loan support than in 2007-08. Amendment regulations to the Education (Student Support) (No. 2) Regulations 2008 are being laid today.

My predecessor as Minister of State for Higher Education, Bill Rammell, placed a memorandum in the Library on 13 May 2008 giving details of the increased loan, grant and fee rates for the 2009-10 academic year, in line with forecast price increases. The detailed tables in that memorandum gave income thresholds for the partial maintenance grant and for the non-means-tested element of the student loan, which have now been revised. I am therefore placing an updated memorandum in the Library which makes clear the levels of support available to new entrants in 2009-10, as well as giving tables showing support for continuing students.

Revenue and Customs: Winter Supplementary Estimate

My right honourable friend the Financial Secretary to the Treasury (Stephen Timms) 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 £91,338,000 from £4,448,459,000 to £4,539,797,000. Within the total DEL change, the impact on resources and capital are as set out in the following table:

£'000

Change

New DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource DEL

107,50

-43,662

4,082,544

347,739

4,430,283

Of which:

Administration Budget*

107,540

-43,662

4,329,802

-

4,329,802

Near-cash in RDEL

107,500

-43,662

3,742,662

381,887

4,124,549

Capital**

27,500

-

284,866

3,648

288,514

Less Depreciation***

-

-

-179,000

-

-179,000

Total DEL

135,000

-43,662

4,188,410

351,387

4,539,797

*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.

**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 change in the resource element of DEL arises from:

Modernisation Fund drawdown of £62,500,000 administration near cash costs to modernise and transform HMRC;

Near cash administration costs draw down of non-voted DUP of £43,662,000 taken up as voted provision to facilitate improvements to key operational activities;

£1,520,000 administration near cash costs transferred from Cabinet Office in respect of Parliamentary Counsel Office;

£77,000 administration near cash costs to the Home Office in respect of transfer of five information officers;

£45,000 administration near cash costs transferred to HM Treasury in relation to the contribution towards the Centre of Expertise in Sustainable Procurement;

£40,000 near cash programme costs transferred to Cabinet Office for Government Secure Zone;

£21,000 administration near cash costs in relation to one post being transferred to HM Treasury; and

£1,000 increase in respect of VOA administration.

The change in the administration budget arises from the changes detailed in the resource element above excluding the £40,000 programme transfer to the Cabinet Office.

The change in the capital element of DEL arises from:

£27,500,000 capital draw down of Modernisation Fund.

Treasury: Winter Supplementary Estimate

My honourable friend the Exchequer Secretary to the Treasury (Angela Eagle) has made the following Written Ministerial Statement.

Subject to parliamentary approval of the winter supplementary estimate, HM Treasury's DEL will be increased by £1,318,000 from £220,233,000 to £221,551,000 and the administration budget will be increased by £1,223,000 from £168,202,000 to £169,425,000 with no change to the capital DEL. The impact on resources and the administration budget is set out in the following table:

ChangeNew DEL

Voted

Non-voted

Voted

Non-voted

Total

Resource

7,748,000

-6,430,000

194,646,000

26,905,000

221,551,000

of which:

Administration budget *

7,653,000

-6,430,000

165,112,000

4,313,000

169,425,000

Near cash in RDEL*

5,811,000

-6,430,000

182,824,000

37,805,000

220,629,000

Capital**

-

-

4,800,000

2,221,000

7,021,000

Less: Depreciation***

-

-

-9,190,000

-

-9,190,000

Total

7,748,000

-6,430,000

190,256,000

29,126,000

219,382,000.

* The total of “administration budget” and “near cash in resource DEL” figures may well be greater than total resource DEL, due to 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 net increase in resource DEL of £1,318,000 is the net effect of the following:

For Request for Resources 1

a Machinery of Government transfer to the Cabinet Office of £273,000 near cash administration costs following the transfer of responsibility for the Statistical Reform team;

a transfer to the Statistics Board of £100,000 near cash programme costs as a contribution towards the costs of a project to improve the quality of migration statistics;

a contribution to the Cabinet Office of £80,000 near cash programme costs in respect of the Government Secure Zone costs;

a transfer from the Cabinet Office of £250,000 near cash administration costs towards consultancy costs incurred by the Prime Minister's Delivery Unit; and

a transfer from HM Revenue & Customs of £21,000 towards the costs of a post in the Budget, Tax and Welfare team.

For RfR 3

Transfers to the Office of Government Commerce towards the costs of the Centre of Expertise in Sustainable Procurement as follows:

£45,000 near cash administration costs from each of the following departments - Business, Enterprise and Regulatory Reform, Communities and Local Government, Cabinet Office, Children, Schools and Families, Transport, International Development, Work and Pensions, Foreign and Commonwealth Office, HM Revenue & Customs, Home Office, Ministry of Defence, Ministry of Justice and £215,000 from Environment, Food and Rural Affairs.

near cash programme costs of £45,000 from the Statistics Board and £700,000 from Environment, Food and Rural Affairs.

There is a reduction in non-voted DEL due to the draw down of Departmental Unallocated Provision of £6,430,000 to offset increased voted spending.

The net increase in the administration costs budget is £1,223,000 comprising the administration costs changes mentioned in the preceding paragraphs plus a reclassification of programme costs to administration costs of £470,000.

Home Office: Winter Supplementary Estimate

My right honourable friend the Secretary of State for the Home Department (Jacqui Smith) has made the following Written Ministerial Statement.

Plans of changes to the departmental expenditure limit and administrative budget for 2008-09

Subject to parliamentary approval of the necessary supplementary estimate, the Home Office's departmental expenditure limits for 2008-09 will be decreased by £67,008,000 from £9,755,389,000 to £9,688,381,000 and the administration budget will be reduced by £29,760,000 from £429,049,000 to £399,289,000.

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

Change New DEL £'000

Voted

Non-voted

Voted

Non-voted

Total

Resource DEL

(77,432)

13,017

8,206,796

794,703

9,001,499

of which:

0

0

0

0

0

Administration budget*

(14,228)

(15,532)

370,811

28,478

399,289

Near cash in RDEL*

(46,098)

(16,769)

8,074,198

726,849

8,801,047

Capital**

502

(502)

576,187

277,813

854,000

Less depreciation***

(2,593)

0

(110,834)

(56,284)

(167,118)

Total

(79,523)

12,515

8,672,149

1,016,232

9,688,381

* The total of the “administration budget” and “near cash in resource DEL” 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 total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

Total

o/w near cash

£ 000's o/w Admin

(a) The change in the resource element of the DEL arises from:

(64,415)

(62,867)

(29,760)

Transfers from other government departments:

32,401

32,401

1,403

Programme from the Welsh Assembly to the Departmental Unallocated Provision as a contribution towards police funding.

21,547

21,547

Programme from the Department for Children Schools and Families to the UK Border Agency (section F) to fund the additional costs of the 'Leaving care' programme.

6,000

6,000

Programme from the Cabinet Office to the Serious Organised Crime Agency (section R) to fund counter narcotic work overseas.

3,019

3,019

Admin from the Cabinet Office to Central Services (section H) for the Parliamentary Counsel office.

1,326

1,326

1,326

Programme from the Department for Children Schools and Families to Crime Reduction (section B) to fund the Respect database.

432

432

Admin from Her Majesty's Revenue and Customs to the UK Border Agency (section F) for the transfer of staff.

77

77

77

Transfers to other government departments:

(51,816)

(50,268)

(26,430)

Admin from Central Services (section H) to the Ministry of Justice for central support costs related to the Machinery of Government transfer effected in the Winter Supplementary Estimate 2007.

(26,135)

(24,587)

(26,135)

Programme from the Office for Security and Counter Terrorism (section D) to the Cabinet Office to fund counter terrorism work.

(10,000)

(10,000)

Programme from Crime reduction and drugs grants (section K) to the Welsh Assembly to fund the drug intervention programme.

(6,495)

(6,495)

Programme from the UK Border Agency (section F) to the Foreign and Commonwealth Office to help meet the costs of migration policies.

(5,000)

(5,000)

Programme from Crime Reduction (section B) to fund the Ministry of Justice's additional costs of implementing the provisions of the Violent Crime Reduction Act.

(2,233)

(2,233)

Programme from the UK Border Agency to the Ministry of Justice to facilitate the automatic deportation of foreign criminals.

(1,430)

(1,430)

Admin from the UK Border Agency (section F) to the Office for National Statistics for improving migration data.

(250)

(250)

Programme from Crime Reduction (section B) to fund the Crown Prosecution Service's additional costs of implementing the provisions of the Violent Crime Reduction Act.

(148)

(148)

Programme from the Office for Security and Counter Terrorism (section D) and the Serious Organised Crime Agency (section R) to the Cabinet Office for Information Security Monitoring and Co-ordination Centre (ISMCC).

(80)

(80)

Admin from the Departmental Unallocated Provision to HM Treasury for a contribution towards the centre of expertise in sustainable procurement.

(45)

(45)

(45)

Planning round changes: Re-profiling UK Border Agency (section F) programme from 2009-10 to 2008-09.

(45,000) 3,000

(45,000) 3,000

0

Re-profiling Office for Security and Counter Terrorism programme from 2008-09 to 2009-10 and 2010-11.

(48,000)

(48,000)

Classification changes:

0

0

(4,733)

Switch Departmental Unallocated Provision from admin to programme to reflect the latest budget delegations.

(4,733)

(b)There is no change to the capital element of the DEL.

Capital

Iraq: Coalition Regional Commands

My right honourable friend the Secretary of State for Defence (John Hutton) has made the following Written Ministerial Statement.

I should like to make a Statement on the restructuring of coalition regional commands in Iraq and the implications for the ongoing UK mission there.

As the Iraqi security forces have grown and matured, coalition forces across Iraq have been able to move increasingly into overwatch and mentoring operations. These successes have allowed coalition forces and structures to be rationalised and combat forces from several nations have been able to return home. The UK has also been able to reduce the scale of its deployment.

Until recently, the area south of Baghdad was divided into three multinational divisional areas, with MND-Centre under US control, MND-Centre South under Polish control and MND-South East under UK control. In future, it is anticipated that only a single multinational divisional headquarters will be required south of Baghdad, given that the Iraqi security forces now have the lead in providing the security for all nine provinces in this area. As part of this restructuring, MND-Centre merged with MND-Centre South as Polish forces completed their mission and MND-Centre has now also taken over overwatch from MND-South East of the three provinces Muthanna, Dhi Qar and Maysan. This new US divisional area is called MND-Centre. Security in these three provinces is provided by the 10th Division of the Iraqi Army (previously trained by UK and Australian forces) and therefore this boundary move does not affect any UK forces, which are focused in Basra. This restructuring of divisional areas is therefore an adjustment to reflect better both the dispositions of coalition and Iraqi forces on the ground and the continuing improvements in security. This new divisional area will remain MND-Centre.

MND-South East, which now consists solely of Basra province, remains focused on developing the rapidly improving 14th Division. The delivery of 14th Division was defined by the Prime Minister in his 22 July statement as one of the decisive conditions for transition and it is therefore right that this is where UK forces concentrate their efforts. As the Iraqi security forces increasingly take responsibility for providing security, the role and shape of the coalition will naturally evolve as efforts increasingly focus on economic development, reconstruction and capacity building.

Local Government: Economic Development and Regeneration

My honourable friend the Minister for Local Government (John Healey) has made the following Written Ministerial Statement.

My right honourable friend the Minister of State for Employment Relations and Postal Affairs (Pat McFadden) and I are today publishing the Government’s response to the consultation paper Prosperous Places: Taking Forward the Review of Sub National Economic Development and Regeneration.

The consultation paper proposed action on a number of conclusions set out in the review of sub-national economic development and regeneration that I announced to the House on 17 July 2007.

The Government’s response today confirms plans for more effective economic decision-making and planning in England’s regions and localities. We believe that these reforms will put in place a legal and policy framework which will assist regions, sub-regions and local areas in responding to current economic difficulties, preparing for the upturn and strengthening jobs and business growth in all areas in the longer term.

The Government’s response is now available in the Libraries of both Houses and can also be accessed online at www.communities.gov.uk/publications/ citiesandregions/govresponseprosperousplaces.

Ministry of Defence: Winter Supplementary Estimate

My right honourable friend the Secretary of State for Defence (John Hutton) 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 £3,434,312,000 (voted and non-voted) from £34,075,771,000 to £37,510,083,000. The administration cost budget will be increased by £64,108,000 from £2,294,141,000 to £2,358,249,000.  Within the DEL change, the impact on resources and capital are as set out in the following table:

ChangeNew DEL

Voted

Non-Voted

Voted

Non-voted

Total

Resource

3,560,019

90,158

37,127,302

146,196

37,273,498

Of which:

Administration Budget

-45

64,153

2,294,096

64,153

2,358,249

Near-cash in RDEL

3,210,019

90,158

25, 836, 849

376,710

26, 213, 559

Capital

113,000

-

7,983,045

851

7,983,896

Depreciation*

-328,865

-

-7,737,825

-9,486

-7,747,311

Total

3,344,154

90,158

37,372,522

137,561

37,510,083

*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:

a net increase in the RfR2 of £2,302,000,000 Direct Resource DEL, £1,063,000,000 Capital DEL, and Indirect Resource DEL of £350,000,000 to reflect the forecast costs of peacekeeping operations in Iraq, Afghanistan and Balkans;

transfers in from the Foreign and Commonwealth Office of £2,400,000 for Balkans funding (RfR2) and £2,800,000 for helicopter pilot training for counternarcotics operations (RfR1); a transfer in from the Cabinet Office of £209,000 in respect of future funding arrangements for the expansion of the parliamentary Counsel Office (RfR1);

transfers out to the Department of Business, Enterprise and Regulatory Reform (BERR) of £4,000,000 being the MOD's contribution to BERR's chemical and nuclear weapons disposal pool (RfR1); transfers out to the FCO of £16,000,000 and the Department for International Development of £1,970,000 being the MOD's contribution to the Stabilisation Aid Fund (RfR2); a transfer out to the Cabinet Office of £40,000 being the MOD contribution to the Government Secure Zone Fund (RfRI); and a resource administration budget transfer of £45,000 to the Centre of Expertise for Sustainable Procurement (RfR1);

a transfer within RFR1 of £1,000,000,000 Capital DEL to Direct Resource within RfR1 relating to Single Use Military Equipment (SUME) flexibility with no overall impact on DEL;

to reflect the estimated indirect resource impact of the first stage of the International Financial Reporting Standards on derivatives and impairments of £215,000,000, with no overall impact on DEL;

to revise sub-head provisions to reflect Resource and Capital revisions in allocations between Top Level Budget Holders to match required defence outputs, with no overall impact on DEL;

additional fiscal Capital DEL provision of £50,000,000;

to increase non-operating Appropriations-in-Aid to reflect a QinetiQ receipt of £200,000,000 and a receipt for the Defence Aviation Repairs Agency of £60,000, 000, with a corresponding and offsetting, increase in Capital Expenditure (no overall impact on Capital DEL);

to re-allocate Royal Hospital Chelsea (RHC) costs of £9,232,000 from other current voted expenditure to non-voted expenditure;

to re-allocate DEL Grants in Aid from DEL to Non Budget Grants in Aid (non-voted) to reflect a classification changes for the Council of Reserve Forces & Cadets Association of £55,522,000; £8,631,000 for the Marine Society & Sea Cadets; and a re-classification of cost of capital for Public Corporations from Voted other current costs to grants of £21,396,000 with no impact on Resource DEL;

to increase Grants in Aid funding for the Royal Naval Museum of £75,000; Royal Hospital Chelsea of £1,000,000; the RAF Museum of £400,000; and the National Army Museum of £395,000 by reducing Resource DEL current costs and increasing Non Budget Grants in Aid with no overall impact on resource;

to increase Grants in Aid funding for the Armed Forces Memorial of £80,000 by reducing Resource DEL current costs and increasing Non Budget Grants in Aid (outside DEL); and

to reflect the re-classification of non-departmental public bodies (NDPBs) museums from voted to non-voted DEL of £14,903,000.

The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £3,389,122,000.

National Savings and Investments: Winter Supplementary Estimates

My honourable friend the Economic Secretary to the Treasury (Ian Pearson) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, National Savings and Investments DEL will be increased by £152,000 to £166,299,000 and the capital element of DEL will be increased by £950,000. Within DEL change, the impact on resources and capital are set out in the following table:

ChangeNew DELTotal

Voted

Non-voted

Voted

Non-Voted

Resource DEL

5,146

-4,994

166,299

-

166,299

Of which:

Administration budget

5,146

-4,994

166,299

-

166,299

Near cash in RDEL

5,146

-4,994

161,692

-

161,692

Capital

950

-

1,438

-

1,438

Depreciation*

-

-

-3,090

-

-3,090

Total

6,096

-4,994

164,647

-

164,647

* 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 capital element of the DEL arises from modernisation fund being drawn down of £950,000 to support running costs on capital expenditure on their estate.

The change in the resource element of DEL arises from:

A drawdown of £152,000 from the Modernisation Fund to support additional running costs associated with capital spending.

The change in the administration budget arises from the Modernisation Fund drawdown.

NATO: Defence Ministerial Meetings

My right honourable friend the Secretary of State for Defence (John Hutton) has made the following Written Ministerial Statement.

I attended an informal meeting of NATO Defence Ministers in Budapest, Hungary on 9-10 October 2008. It provided an important opportunity for discussions on operations and on the transformation of NATO capabilities, following the informal Defence Ministers’ meeting in London on 18-19 September 2008, which was attended by my predecessor as Secretary of State for Defence, the right honourable Des Browne.

The main focus of the meeting in London was the continuing transformation of the Alliance. Ministers expressed their strong support for NATO transformation and for proposals made during the meeting to increase the targets for Allies’ deployable capabilities. Over dinner, Ministers reflected on the implications for NATO of the events in Georgia in the preceding months. There was consensus that collective defence and discretionary, out-of-area operations required the same expeditionary capabilities.

The focus of the meeting in Budapest was on current operations. This was the first ministerial meeting in which Albania and Croatia participated fully. Ministers underlined the importance of the NATO operation in Afghanistan, and in response to a request from the Government of the Islamic Republic of Afghanistan, directed ISAF to take action, with the Afghan authorities, against narcotics facilities and facilitators supporting the insurgency within priority regions. Ministers stated their continued support for NATO’s KFOR mission and its work in providing a safe and secure environment in Kosovo. On Afghanistan, NATO Ministers also had a meeting with their counterparts from non-NATO nations making valuable contributions to the International Security Assistance Force in Afghanistan, together with the Defence Minister of Afghanistan, the United Nations Secretary-General’s special representative for Afghanistan and a European Union senior representative.

At the request of the United Nations, Ministers agreed that NATO will contribute to deter piracy in the waters off the coast of Somalia, by providing a number of ships from the Alliance’s Standing Naval Maritime Group to patrol the waters off the coast of Somalia and escort ships carrying food supplies for the World Food Programme.

At the meeting, Ministers re-affirmed the importance that they attach to developing deployable capabilities and agreed to increase targets for the deployability of allies’ land forces. In addition, the first ministerial-level meeting of the NATO-Georgia Commission took place, where the Defence Minister for Georgia set out the Georgian Government’s priorities in security and defence policy.

Non-Jury Trial Under the Justice and Security (Northern Ireland) Act 2007

The Minister of State for Northern Ireland (Paul Goggins) has made the following Ministerial Statement.

During the passage of the Justice and Security (Northern Ireland) Act 2007, Ministers undertook to make a Statement to Parliament each year on the volume of non-jury trial cases under the legislation. This is the first such Statement.

During the period 1 August 2007 to 31 July 2008 inclusive, the Director of Public Prosecutions for Northern Ireland issued 29 certificates, relating to 28 cases, under Section 1 of the Act. Some of those certificates relate to cases that were already in the system at the time the previous “Diplock” arrangements under the Terrorism Act 2000 were repealed, but where the indictment had not yet been presented.

During the same period, 48 non-jury cases have been dealt with before the Crown Court. This figure is made up of 13 cases under the 2007 Act, and a further 35 cases being dealt with under the transitional arrangements put in place for the repeal of Part VII of the 2000 Act. Under those transitional arrangements, cases where the indictment had been presented at the time of repeal continued to be tried under the 2000 Act arrangements.

A further 24 cases were in the system at 31 July 2008. This figure is made up of 15 cases where certificates have been issued under the 2007 Act and nine transitional Diplock cases. These nine cases will be the last tried under the Terrorism Act 2000 arrangements.

Northern Ireland Office: Winter Supplementary Estimates

The Secretary of State for Northern Ireland (Shaun Woodward) has made the following Ministerial Statement.

Subject to parliamentary approval, the Northern Ireland Office (NIO) will be taking a 2008-09 winter supplementary estimate. The effect this will have is to increase the NIO’s DEL by £31,542,000 from £1,183,975,000 to £1,215,517,000.

Change New DEL

£’000

Voted

Non-Voted

Voted

Non-voted

Total

Resource

20,146

11,396

335,397

902,967

1,238,364

Admin budget

146

-

77,285

-

77,285

Near-cash

146

-

252,800

675,212

928,012

Capital

-

-

28,137

43,766

71,903

Depreciation

-

-

- 38,526

- 56,224

- 94,750

Total

20,146

11,396

325,008

890,509

1,215,517

The change in total DEL of £31,542,000 relates to: £20,000,000 rephasing of Compensation Agency non-cash provisions budget from 2009-10 and 2010-11 into 2008-09; £146,000 admin budget near-cash transfer from the Cabinet Office for Parliamentary Counsel’s Office costs; and £11,396,000 addition of police pension funding.

Office for Strategic Co-ordination of Health Research

My right honourable friend the Secretary of State for Health (Alan Johnson) has made the following Written Ministerial Statement.

The Office for Strategic Co-ordination of Health Research (OSCHR) was established 22 months ago following Sir David Cooksey’s recommendations for better co-ordination of health research activities across the UK, and a stronger focus on translating basic science into improved care for NHS patients. Sir David’s report A Review of UK Health Research Funding was published in December 2006. The first progress report from the chairman of OSCHR, Professor Sir John Bell, was published on 18 November 2008.

Sir John’s report Office for Strategic Coordination of Health: Chairman’s First Progress Report highlights the main elements of the combined approach that has been put in place by the National Institute for Health Research (NIHR) and the Medical Research Council (MRC) since the Cooksey review. This period has seen an unprecedented commitment to health research in terms of funding, infrastructure, research programmes and the volume of health research commissioned.

The Government’s single health research fund, which will soon top £1.7 billion a year, is allocated by the Department of Health to the National Institute for Health Research in England, and by the Department of Innovation, Universities and Skills to the Medical Research Council, which supports research throughout the United Kingdom.

The progress report also announces that the Prime Minister has asked for a set of national ambitions for health research to be developed to build on the progress so far and encourage the translation of major research breakthroughs into new NHS treatments and services. The national ambitions will be developed independently of government by the research funding bodies, under the auspices of OSCHR, in consultation with the academic community.

A copy of the report has been placed in the Library.

Regional Development Agencies

My right honourable friend the Minister of State for Employment Relations and Postal Affairs (Pat McFadden) has made the following Written Ministerial Statement.

I am pleased to announce that I have decided to appoint 23 RDA board members, who between them will serve seven of our Regional Development Agencies. Their names are listed below.

RDA

Board member appointees

Advantage West Midlands

Cllr Mike Whitby

East of England Development Agency

Mr Nitin Dahad

Cllr Shona Johnstone

Cllr Madeline Russell

East Midlands Development Agency

Ms Elizabeth Donnelly

Mr James Harker

North West Regional Development Agency

Mrs Anne Selby

Ms Brenda Smith extended for one year

Lord Peter Smith

Dr John Stageman

South East England Development Agency

Ms Zenna Atkins

Cllr Jeremy Birch

Mr Leslie Dawson

Cllr Keith Mitchell

South West of England Regional Development Agency

Mr Ian Ducat

Mr Peter Madden

Professor Steve Smith

Ms Judith Reynolds and Sir Henry Studholme reappointed after applying through open competition

Yorkshire Forward

Mr Bill Adams

Mr Ajaz Ahmend

Mr John Vincent

Mrs Julie Kenny—reappointed after applying through open competition

The RDAs are playing a crucial role in supporting the national and regional economies in this critical and exceptional economic climate. All the appointees will bring a wealth of experience and knowledge to their RDA, adding a vast amount of value.

I have agreed to the appointments starting on 14 December 2008 for a period of three years, expiring in December 2011.

I have placed further details of these appointments, including biographies, in the Libraries of both Houses. I can confirm that the appointments were made in accordance with the Code of Practice of the Commissioner for Public Appointments.

Remploy

My right honourable friend the Parliamentary Under-Secretary of State for Work and Pensions (Jonathan Shaw) has made the following Ministerial Statement.

Remploy’s achievement against its targets set by Government for 2007-08

Target Description

Target

Achievement

To live within the company’s financial means in the 2007-08 financial year

Operating result £145.8 million

£145.8 million

To meet the financial target for the overall cost of the factory network

within £100 million

£95.7 million

To meet job entry targets through the company’s Employment Services business

Total job entries 6,000;

6,472

of which Workstep 4,600

4,632

Remploy is due to publish its annual report and accounts in November 2008 giving further details of its performance throughout 2007-08. Copies of the annual report and accounts will be placed in the Libraries of both Houses, when it is published.

On behalf of my right honourable friend the Secretary of State for Work and Pensions, I have written to the chairman of Remploy formally approving the provisionally agreed 2008-09 performance and resources agreement between the department and the company. The performance and resources agreement includes targets for the current year. The agreement has been negotiated on behalf of my right honourable friend the Secretary of State for Work and Pensions. The targets for 2008-09 are:

Target Description

Target

To live within the company’s financial means in the 2008-09 financial year

To achieve an operational funding result of £121.5 million; and to modernise the business within a cost of £23 million.

Factory businesses

To achieve an operating result of £67.6 million; and a cost per disabled employee of £22,000.

Employment Services business—Job Entries

To achieve a total of 7,500 job entries, of which 5,500 will be Workstep job entries, to be achieved within an operating result of £29.1 million

The full agreement for 2008-09 will be placed in the Libraries of both Houses.

Scotland: Winter Supplementary Estimates

My right honourable friend the Secretary of State for Scotland (Jim Murphy) has made the following Written Ministerial Statement.

Subject to parliamentary approval of the necessary supplementary estimates, the departmental expenditure limit (DEL) provision for the Scotland DEL will be increased by £329,774,000 (of which £157,206,000 is depreciation) from £27,287,375,000 to £27,459,943,000.

The administration of the Scotland Office DEL will remain unchanged.

The Scotland DEL increase takes account of the following routine adjustments to the Scottish Executive provision:

the take-up of end-year flexibility (EYF) by the Scottish Executive amounting to £300,000,000;

the take-up of 2008 Budget consequentials by the Scottish Executive amounting to £13,095,000;

and a switch of £115,562,000 from near-cash to non-cash in respect of increased depreciation charges in the Scottish NHS.

The DEL increase also includes the following changes, amounting to a net increase of £16,679,000. These are:

a transfer for £15,910,000 from the Department for Transport; and

a transfer for £769,000 from the Department for Transport.

The increases will be added to the planned total of public expenditure to fund spending commitments in the current financial year.

Transport: Delivering Sustainability

My right honourable friend the Secretary of State for Transport (Geoff Hoon) has made the following Written Ministerial Statement.

I am announcing today the publication of Delivering a Sustainable Transport System. This document marks the latest milestone in our longer-term planning process, setting out our goals and identifying the various challenges that future transport schemes will need to address.

The publication of Towards a Sustainable Transport System in October 2007 outlined our approach to long-term transport planning. Since then, the department has been undertaking further work and accelerating the process for identifying the strategic national corridors where we face our most immediate transport challenges. The national networks strategy group I announced on 29 October will be focusing on measures to ensure that we make best use of investment in key strategic national corridors and develop these for the longer term. The development of solutions for international networks will also be led by the department. Regions and local authorities will undertake similar work for the remaining networks.

Transport is a critical enabler for the economy and underpins many of the things we regard as important for our quality of life but we are also committed to addressing climate change, both now and for future generations.

A copy of the document has been placed in the House Library.

I am also announcing today that I am bringing forward over £1 billion of investment in improving our nation’s transport infrastructure, in particular to tackle bottlenecks and improve access to key international gateways. This comprises an extra £700 million which will be invested in major transport projects next year to accelerate government plans to cut congestion and significantly increase rail capacity. This includes:

dualling of the A46 between Newark and Widmerpool (£100 million—as part of £174 million government funding overall);

an additional 200 train carriages to relieve congestion on the Great Western, Northern and TransPennine rail franchises (£300 million);

and introducing more managed motorways schemes to make best use of our existing motorway capacity (£300 million).

Alongside that, £300 million of new government funding will be committed to speeding up the delivery of other key schemes that improve transport links to some of the UK’s most important airports and ports, as well as offering more environmentally friendly options for transporting freight. This includes:

improvements to the A180/A160 junction to enhance access to Immingham Port (£30 million);

technology improvements to enhance traffic flow on the A12 between the M25 and Ipswich, improving access to Felixstowe and Harwich ports (£60 million);

the south-east Manchester relief road, to improve access to Manchester Airport (£165 million);

and enhancements to the North London Line to enable increased movements of rail freight on this important link (£54 million).

Delivery of the A46, A12, A180/A160 and access to Manchester Airport schemes is subject to agreeing regional funding contributions and, with the exception of the A12, the completion of statutory planning processes.

UK Statistics Authority: Winter Supplementary Estimate

My honourable friend the Parliamentary Secretary, Cabinet Office (Kevin Brennan) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary supplementary estimate, the UK Statistics Authority’s total departmental expenditure limit (DEL) will be increased by £805,000 from £210,060,000 to £210,865,000, and the programme budget will be increased by £805,000.

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

 Change (£,000)New DEL (£,000)

 

Voted

Non-Voted

Voted

Non-voted

Total

Resource DEL

805

-

210,865

6,000

216,865

Of which:

Administration Budget*

-

-

-

-

-

Near-cash in RDEL

805

-

188,365

8,000

196,365

Capital**

-

-

21,000

-

21,000

Less Depreciation †

-

-

- 16,500

-

- 16,500

Total

805

-

215,365

6,000

221,365

* 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.

** 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 change in the resource element of DEL arises from:

public expenditure survey transfers from other government department in support of migration statistics; and

transfer to HMT in respect of the Centre of Expertise in Sustainable Procurement.

The change in the programme budget arises from transfer from other government department of £850,000 and transfer of £45,000 to HMT in respect of the Centre of Expertise in Sustainable Procurement.

Value Added Tax

My right honourable friend the Financial Secretary to the Treasury (Mr Stephen Timms) has made the following Written Ministerial Statement.

The Chancellor of the Exchequer yesterday announced as part of the Pre-Budget Report a temporary reduction in the standard rate of VAT to 15 per cent from 1 December 2008 to 1 January 2010 when the rate will return to 17.5 per cent.

The Government have taken these steps to provide further support for growth and incomes during the economic downturn. The Government’s discretionary fiscal action will deliver support of around 1 per cent of GDP to the economy in total in 2009-10.

However, it is also important that the Government protect the public finances from artificial avoidance seeking to exploit the change in VAT rates where there is no current economic activity. Therefore, the Finance Bill 2009 will contain anti-forestalling legislation to ensure that the announced VAT rate changes are fully effective. The Government will expose the draft legislation for comment as soon as possible.

Anti-forestalling legislation will apply from today to ensure that, in the circumstances set out below, supplies with a basic time of supply after a VAT rate increase takes effect will be subject to the rate of VAT in force at that time. The provisions are designed to prevent artificial forestalling while being straightforward for business to understand and operate and not affecting genuine commercial transactions. This legislation is not intended to catch the normal commercial activity of providing goods and services.

The anti-forestalling legislation will apply in the circumstances set out below where the supplier receives a prepayment for the goods or services or issues a VAT invoice in advance of the rate increase. It will also apply where, in advance of the rate increase, the supplier grants the customer an option or a right to obtain goods or services at a discount or free of charge after the rate increase takes effect.

The circumstances are that the customer cannot recover VAT in full on the supply and that:

the supplier and customer are connected parties;

the supplier receives a prepayment, or grants the customer an option or a right, and the prepayment, or the acquisition of the option or right, is wholly or partly funded (directly or indirectly) by the supplier;

or a VAT invoice is issued by the supplier showing an amount any part of which is due more than six months after the date of the invoice.

The basic time of supply is normally when goods are delivered or made available, or when services are performed. For continuous supplies of goods or services, with consideration payable periodically or from time to time, the basic time of supply will be the end of the period to which a payment or invoice relates (e.g. a billing period).

Although the anti-forestalling legislation will apply from today, any extra VAT arising from its operation will not become due until after Royal Assent of the Finance Bill 2009. Until then, suppliers should continue to account for VAT as normal, applying the VAT rate at the time of the prepayment, VAT invoice issue or grant of the right or option.

The operation of the legislation will be kept under review to ensure that the provisions work as intended. Any additional or alternative anti-forestalling provisions included in the Finance Bill 2009 will only take effect at the earliest from the date that they are announced.