Subject to parliamentary approval of the necessary supplementary estimate, HM Revenue and Customs departmental expenditure limit will be increased by £21,249,000 from £5,033,971,000 to £5,055,220,000 and the administration costs limit will be increased by £3,574,000 from £4,523,288,000 to £4,526,862,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL

£000s

*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 the draw down of £20,000,000 non-cash administration costs EYF as set out in the Public Expenditure Outturn White Paper; the draw down of £3,400,000 Resource Departmental Unallocated Provision, subsequently vired into capital; virement from administration costs to programme expenditure of £15,000,000; the balance reflects the net effect of PES transfers from the Cabinet Office of £1,974,000 administration costs in respect of Parliamentary Counsel Office funding; £707,000 programme expenditure to the Department for Transport to cover the cost of a transfer of work; £18,000 programme expenditure to Security and Intelligence Agencies as a contribution towards the purchase of computer-based tools.

The change in the capital element of the DEL arises from virement from administration costs of £3,400,000.

The Financial Secretary to the Treasury (John Healey): Subject to Parliamentary approval of any necessary Supplementary Estimate, HM Treasury resource DEL will be increased by £914,000 from £256,064,000 to £256,978,000. The administration budget will be reduced by £5,313,000 from £166,854,000 to £161,541,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL

*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 change in the resource element of the DEL arises from the Machinery of Government change transferring the Government Social Research Unit from Cabinet Office to HM Treasury, £914,000 for 2005–06.

The following items are DEL neutral:

the draw down of £600,000 administration costs from the Financial Inclusion Fund for expenditure on the promotion of banking services to those on low incomes. £1 million of funding for the FIF was classified as Treasury non-voted DEL administration budget at the start of the year; the other £400,000 remains within non-voted DEL.

Transfer between RfRs 1 and 3, £12,465,000, to fund OGC's work on its wider remit, including delivering the efficiency programme and changes in provisions relating to the residual vacant estate.

Transfer between RfRs 1 and 2, £3,700,000, for increased spend on coinage arising from higher metal prices.

Increase in appropriations-in-aid within all three RfRs (RfR1 £10,702,000, RfR2 £500,000, RfR3 £325,000) with increased expenditure switching from RfR1 to RfR 2 for coinage spend, see above, and RfR 3 for expenditure relating to OGC's fee earning services.

Movement of OGC Efficiency Challenge Fund allocation from non-voted to voted, £2,422,000. The allocation for the ECF within non-voted DEL for 2005–06 was £7,800,000, and total forecast ECF expenditure for 2005–06 is £8,868,000. The other £6,446,000 of funding is being transferred from RfR 1, as above.

The net reduction of £1,745,000 in the capital element of the DEL arises from:

Transfer of capital spend from Core Treasury (RfR 1) to fund planned expenditure by OGC (RfR 3). The transfer is DEL neutral. In addition, non-operating appropriations in aid are increased by £1,380,000 to cover loan repayments from OGCbuying.solutions to OGC. The increased net provision is to finance OGC's spend on its domestic IT systems and capital improvements to its Norwich office.

A further reduction in core Treasury and DMO capital for provision in the Main Estimate no longer required.

The non-voted resource DEL of £35.4 million in the table above includes banking and gilts registration services provided by the Bank of England and Computershare, plus MEPs' salaries and the Civil List. Latest forecasts indicate that those activities are likely to underspend the provision by around £3.9 million in aggregate. In addition, £400,000 of the original £1 million provision for the Financial Inclusion Fund and £5,378,000 of the original £7.8 million provision for the Efficiency Challenge Fund have not been transferred to voted resource DEL and will not be applied in 2005–06.

The Economic Secretary to the Treasury (Mr. Ivan Lewis): Subject to parliamentary approval of any necessary supplementary estimate, National Savings and Investments DEL will be increased by £2,500,000 from £179,794,000 to, £182,294,000 and the administration costs limits will be increased by £2,500,000 from £179,794,000 to, £182,294,000. Within DEL change, the impact on resources and capital are set out in the following table:

New DEL -- (£000s)

*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 increase in the DEL relates to resources only and arises from end year flexibility being drawn down. This is in order to allow National Savings and Investments to continue with the successful project investment, and to allow costs arising from more recent forecasts on the Evidence of Identity costs to be financed. More recent National Savings and Investments budgeting assumptions for 2005–06 showed an increase in costs associated with payments to Siemens Business Service (SBS) and other suppliers later in the year. These payments are necessary in order to meet National Savings and Investments financing targets.

There is no change in the capital element of DEL.

The Financial Secretary to the Treasury (John Healey): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office for National Statistics DEL will increase by £178,000 from £170,924,000 to £171,102,000 and the administration budget will increase by £178,000 from £170,374,000 to £170,552,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- (£000s)

*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 drawdown of £100,000 from HM Treasury's Evidence Based Policy Fund to fund work on the Wealth and Assets survey and £78,000 Machinery of Government change from GAD for the transfer of certain responsibility for demographic projections.

My hon. Friend the Secretary of State for Constitutional Affairs, Lord Falconer of Thoroton, has made the following written ministerial statement in the other place yesterday.

"The Government is continuing to look at ways to modernise our electoral system and to increase the opportunities that people have to vote. To test the effectiveness and robustness of these innovations and to build public confidence in them, we are continuing to conduct a programme of pilots in 2006 which maintains the momentum that was started in 2000.

With this aim in mind, at the end of October 2005, in conjunction with the Electoral Commission, we issued a prospectus inviting expressions of interest from local authorities seeking to run electoral pilots at the May 2006 local elections.

Today I am pleased to announce that I have accepted 16 applications from local authorities to hold pilots at the May 2006 local elections. The names of the successful local authorities are attached at the end of this statement. A background paper providing further details on the pilots has been placed in the House Library.

The local authorities will pilot innovations including:

trials of changes to the administration of elections proposed in the Electoral Administration Bill, such as changes to the ballot paper to support more secure efficient production of postal votes and the checking of signatures on postal ballots,

voting in alternative locations such as shopping centres and rural locations to allow us to further test how voting in different locations and at different times can enhance access,

electronic counting of ballots which will build on past work and test how this can be refined to ensure confidence and support future use of technology to gain efficiencies in the administration of elections. This will also enable us to identify how technology can support counting in the different voting systems used in local authority and regional elections.

Some of these pilots will assist us in planning the implementation of the proposals in the Electoral Administration Bill, in ensuring the ongoing integrity of electoral mechanisms and in refining and developing the programme of work for ensuring electoral processes fit with the needs of modern lifestyles.

The next step will be for us, working in consultation with the Electoral Commission and the local authorities, to draw up the statutory orders authorising the pilots.

We are grateful to all local authorities that applied to pilot in May 2006 and are keen to continue to engage local authorities in looking at innovative ways to improve the elections process and take advantage of new technologies."

Total: 16

London Borough of Brent

Brentwood Borough Council

Borough of Broxbourne

Epping Forest District Council

London Borough of Harrow

London Borough of Lewisham

Merseyside Authorities (Knowsley, Liverpool, St Helen's and Sefton)

London Borough of Newham

Peterborough City Council

Rushmoor Borough Council

Shrewsbury and Atcham Borough Council

Stevenage Borough Council

Swindon Borough Council

Stratford-on-Avon District Council

Tyne and Wear Authorities (Gateshead, Newcastle, South Tyneside and Sunderland)

City of Westminster

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Privy Council Office total DEL will be increased by £2,381,000 from £4,451,000 to £6,832,00 and the administration budget will be increased by £2,381,000 from £4,382,000 to £6,709,000. Within the DEL change, the impact on resources and capital is set out in the following table:

New DEL -- (£000)

The change in the resource element of the DEL arises from a Machinery of Government change, which transferred the Offices of the House of Commons and House of Lords Chief Whips from the Cabinet Office to the Privy Council Office (£2,097,000), and the take up of end-year flexibility (£230,000).

The change in the capital element of the DEL arises from the transfer of the Offices of the House of Commons and House of Lords Chief Whips from the Cabinet Office (£20,000) and the take up of end-year flexibility (£34,000).

The Minister of State, Department for Constitutional Affairs (Ms Harriet Harman): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Constitutional Affairs, Northern Ireland Court Service and National Archives: Public Records Office and Historical Manuscripts Commission Total Departmental Expenditure Limit (DEL) will be increased by £38,886,000 from £3,785,906,000 to £3,824,792,000 and the administration budget will be increased by £12,821,000 from £490,081,000 to £502,902,000

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

New DEL -- £'000

* 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 Department for Constitutional Affairs DEL arises from:

RfR1 Resource Change: Admin (total increase of £10,242,000)

Transfers from other Government Departments:

(i) £320,000 additional funding from the Cabinet Office for Parliamentary Counsel Office

(ii) £875,000 increase in resources in relation to the Implementation of the Adoption & Children Act 2002

(iii) £150,000 increase in resources in relation to the 21st Century CJ System.

(iv) £1,230,000 increase in resources in relation to funding for XHIBIT from the Home Office Criminal Justice Information Technology ring fenced funding.

(v) £1,690,000 increase in resources in relation to funding for LIBRA from the Home Office Criminal Justice Information Technology ring fenced funding.

Machinery of Government Transfer:

(vi) £1,035,000 increase in resources from Home Office in relation to Coroner's Reform.

(vii) £1,251,000 increase in resources from the Office of the Deputy Prime Minister in relation to the Boundary Commission.

(viii) £262,000 increase in resources from the Office of the Deputy Prime Minster in relation to Policy on the conduct of local Government Elections.

(ix) £18,000 increase in resources from the Office of the Deputy Prime Minster in relation to Government Offices.

Take up of End-Year Flexibility (EYF):

(x) £1,350,000 increase in resources for the Single Asylum Fund.

Transfers to other Government Departments:

(xi) £1,240,000 to the Crown Prosecution Service for the Case Progression Tool.

(xii) A reduction of £126,000 to reflect a transfer of budgetary cover to the Department of Trade & Industry for CEHR Funding SR04 & Equalities Review.

(xiii) A reduction of £1,310,000 to reflect a transfer of budgetary cover to the Home Office form the Criminal Justice Information Technology (CJIT) ring fence funding for the Case Progression Tool for the Effective Trial Management Programme (ETMP).

Other

(xiv) £3,200,000 increase as a result of clarification on VAT treatment for agency staff.

Transfers between sections within the Estimates:

(xv) A correction of Public Guardianship Office income (£1,289,000) moved from administration resource to program. This results in an increase in the administration budget of £1,289,000.

(xvi) A transfer of £248,000 from administration to programme to correct a previous transfer to the Crown Prosecution service for Liverpool Justice Centre.

RfR1 Resource Change: Programme (total increase of £11,952,000)

Transfers from other Government Departments:

(xvii) £1,868,000 increase in resources in relation to the Implementation of the Adoption & Children Act 2002.

(xviii) A transfer of £150,000 additional funding for the Enforcement Programme.

(xix) £110,000 increase in resources in relation to the funding for EXISSR1.

Machinery of Government Transfer:

(xx) A transfer of £650,000 from the Home Office in relation to Coroner's Reform.

(xxi) £59,000 increase in resources from the Office of the Deputy Prime Minister in relation to the Boundary Commission.

Take up of End-Year Flexibility (EYF):

(xxii) £39,690,000 additional spending on Single Asylum Fund.

Transfers to other Government Departments:

(xxiii) A transfer of £2,500,000 to the Crown Prosecution Service for the Charging Initiative.

(xxiv) A transfer of £38,000 to the Department of Trade & Industry for CEHR Funding SR04 & Equalities Review.

(xxv) A transfer of £8,000,000 budgetary cover to the Scottish Executive for increased Judiciary Salary liability.

(xxvi) A transfer of £2,600,000 budgetary cover to the Northern Ireland Court Service for increased Judiciary Salary liability.

(xxvii) A transfer of £4,000,000 budgetary cover to the Northern Ireland Court Service in relation to increased Northern Ireland Legal Service Commission costs.

Other changes

(xxviii) £6,000,000 reduction to the CLS for the Clarification on VAT treatment for Asylum Legal Aid Bills.

(xxix) £5,900,000 Increase in Appropriation in Aid for Magistrates Courts fee income.

Transfers between sections within the Estimates:

(xxx) A correction of Public Guardianship Office income (£1,289,000) moved from administration resource to program. This results in a decrease in the programme budget of £1,289,000.

(xxxi) A transfer of £248,000 from administration to programme to correct a previous transfer to the Crown Prosecution service for Liverpool Justice Centre.

RfR3 Resource Change: Administration (total increase of £606,000)

Take up of End-Year Flexibility (EYF):

(xxxii) £329,000 in relation to Additional costs for increased work due to the Government of Wales Bill.

Transfers from other Government Departments:

(xxxiii) £57,000 funding for the Parliamentary Counsel Office.

Movements of provision between sections within RfR3:

(xxxiv) £220,000 increase in relation to Non Cash transfer from Assembly to Wales Office to cover increased impairment charges.

The change in the resource element of the Northern Ireland Court Service DEL arises from:

Resource Change: Admin (total decrease of £1,750,000)

Increase in Appropriations in Aid:

(i) To take up £750,000 additional appropriations in aid to offset project costs incurred by the Northern Ireland Court Service and Northern Ireland Office in respect of the safety camera netting off scheme.

(ii) To take up £1,000,000 additional appropriations in aid to offset a corresponding amount of "other current" expenditure on judicial salaries, non cash costs and lay magistrates fees.

Resource Change: Programme (total increase of £8,509,000)

Transfers from other Government Departments:

(iii) A transfer of non cash funding from the Department of Constitutional Affairs to fund an increased judicial salary liability (£2,600,000).

(iv) A transfer of funding from the Department for Constitutional Affairs to fund additional expenditure on publicly funded legal services (£4,000,000).

Other Increases:

(v) Additional expenditure on judicial salaries, non-cash costs and lay magistrates fees offset by additional appropriations in aid (£1,000,000).

(vi) Additional expenditure by Northern Ireland Court Service and Northern Ireland Office arising from the safety camera netting off scheme (£750,000).

Neutral Changes:

(vii) Increase in non cash costs for cost of capital (£1,064,000) and depreciation (£2,700,000) to release additional grant payable to the Northern Ireland Legal Services Commission for expenditure on publicly funded legal services (total of £3,764,000). This is offset in DEL terms by a reduction in the resource consumption of the Legal Services Commission.

Take up of End-Year Flexibility (EYF):

(viii) To take up resource EYF for additional expenditure on publicly funded legal services by the Northern Ireland Legal Services Commission (£159,000).

The change in the resource element of the National Archives DEL arises from:

The National Archives: Public Record Office and Historical Manuscripts Commission's DEL will be increased by £4,407,000 from £38,616,000 to £43,023,000 and the administration budget will be increased by £3,723,000 from £39,394,000 to £43,117,000.

The change in the resource element of the DEL arises in respect of expenditure on the further development to systems relating to the preservation of records and making these records accessible online. Additionally, to allow The National Archives to develop wider market sales operations, a neutral change is sought to allow for £2.6m of expenditure on events, on wholesale publishing, book purchases and record copying intended for sale through The National Archive's retail sales outlets and wholesale distribution channels. Additional wider market receipts generated by these retail sales of £2.6m offset this expenditure.

The 2005–06 Main Estimate provided £39.4m administration cost budget. The Spring Supplementary Estimate requests an increase in the original provision of £3.7m, making the new limit £43.1m.

The change in the capital element of the Department for Constitutional Affairs DEL arises from:

RfR1 Capital Change (total increase of £6,620,000)

Transfers from other Government Departments:

(i) £500,000 additional provision for Effective Trial Management Programme (ETMP) for the Case Provision Tool.

(ii) £1,500,000 additional provision for the Mental Health Review Tribunal.

(iii) £1,120,000 additional funding for the Case Progression Tool for the Effective Trial Management Programme (ETMP).

(iv) £500,000 to provide additional funding for the North Merseyside Local Criminal Justice Board (LCJB).

Take up of End-Year Flexibility (EYF):

(v) £3,000,000 in relation to GLMCA Capital Receipts.

Asset sale

(vi) £2,085,000 capital and £7,263,000 capital receipts (reflecting a £5,178,000 profit on disposal). Only the net book value of £2,085,000 will score against capital DEL.

The change in the capital element of the Northern Ireland Court Service DEL arises from:

Capital Change (total increase of £1,000,000)

Take up of End-Year Flexibility (EYF):

(i) Take up of capital EYF to fund refurbishment of accommodation for the Coroners Service (£1,000,000).

The change in the capital element of the National Archive DEL arises from:

Capital Change (total increase of £684,000)

Take up of End-Year Flexibility (EYF)

£0.684m end year flexibility draw down for the development of electronic service delivery and further development of online services for the National Archive website to further improve access to catalogues and records held.

Subject to parliamentary approval of any supplementary estimate, the Department for Culture Media and Sport's departmental expenditure limit (DEL) will be increased by £22,448,000 from £1,630,269,000 to £1,652,717,000 and the administration cost limit will increase £829,000 from £48,970,000 to £49,799,000. Within the DEL changes the impact on resource and capital are set out in the following table:

New DEL -- £000s

*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:

Drawdown of £12,000,000 non cash, non voted end-year flexibility to cover the borrowing of the London Organising Committee of the Olympic Games (LOCOG).

Transfers from other Government Departments of: £148,000 from Cabinet Office for Parliamentary Counsel and £100,000 from the Department of Trade and Industry for the Women and Equality Unit.

With agreement of HM Treasury the provision of £4,000,000 which had been incorrectly classified as resource DEL has been amended to capital DEL.

The administration cost limit has increased by £829,000 from £48,970,000 to £49,799,000. This is as a result of transfers to and from programme budgets and transfers from the Cabinet Office and the Department of Trade and Industry as detailed above.

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

Take up of end-year flexibility of £4,200,000 of which £3,000,000 is in respect of the listed places of worship project funded by the Capital Modernisation Fund and £1,200,000 is administration to cover refurbishment costs of the Cockspur Street offices.

A transfer of £6,000,000 from ODPM for Olympic-related regeneration projects. A £4,000,000 resource to capital re-classification detailed above.

Ministry of Defence Votes A 2006–07, will be laid before the House on 14 February as HC 869. This outlines the maximum numbers of personnel to be maintained for service in the armed forces for financial year 2006–07.

Copies of these reports will be laid in the Libraries of both Houses.

Following an open competition which attracted a strong field of applicants, I am pleased to advise the House of the appointment of four new members and the reappointment of one member to the National Employer Advisory Board (NEAB).

The new members are:

Mr David Brown

Dr Elizabeth Haywood

Mr Neil Johnson

Mr Tim Melville-Ross

The reappointment is:

Ms Nicola Carew

They join the other eleven members of the board, which is chaired by the noble Lord Glenarthur, and which continues to provide appropriate support in conjunction with the SaBRE campaign to reservists and their employers. I take this opportunity to thank NEAB for its work which is greatly valued by the Ministry of Defence.

I am pleased to announce that Subject to Parliamentary approval of the necessary Supplementary Estimate, the Ministry of Defence Departmental Expenditure Limits (DEL) will be increased by £1,303,494,000 from £31,053,831,000 to £32,357,325,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000s

*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 transfer of £104,000 from the Cabinet Office to the MOD in respect offuture funding arrangements with the Office of the Parliamentary Counsel;

a transfer of £2,100,000 from the Foreign and Commonwealth Office to theMOD in respect of an extension to aircraft operations;

a transfer of £167,000,000 from the MOD to the Department of Trade and Industry relating to start up costs for the newly-established Nuclear Decommissioning Authority;

to draw down the Department's Unallocated Provision of £885,000,000 to meet additional requirements for depreciation and provisions;

to increase Non-Budget Expenditure by £267,606,000 to reflect the impact of the revised Treasury discount rate on provisions;

to reduce resource provision by £65,000,000 to reflect a technical agreement in the 2004 Spending Review relating to changes in the handling of cash release of provisions;

an increase in income of £10,000,000 offset by Resource Appropriations in Aid in the same amount, relating to forecast income being above that requested at Main Estimates for the Central TLB;

an increase in RfR 2 Resource of £933,565,000 to reflect the costs of peace keeping in Iraq and Afghanistan;

transfers in of £64,000,000 and £3,200,000 Resource from the Foreign and Commonwealth Office to the MOD in respect of the Global Conflict Prevention Pool for Balkans programme costs and the Global rest of the World Conflict Prevention Pool costs;

to recognise a non-budget Grant in Aid payment of £175,000, offset by a corresponding reduction in DEL, to the Royal Hospital Chelsea and the National Army Museum to fund commercial insurance policies.

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

recognition of a Capital DEL reduction of £15,000,000 in RfRl, the advanced purchase of programmed equipment as Urgent Operational Requirements, under RfR2 in 2004–05;

a reduction of capital provision by £55,000,000 to reflect a technical agreement agreed in the 2004 Spending Review relating to changes in the handling of cash release of provisions;

an increase in Capital Appropriations in Aid of £27,857,000 relating to the redemption of preference shares held by the MOD in QinetiQ;

an increase in RfR 2 Capital DEL of £329,997,000 to reflect the costs of peace-keeping in Iraq and Afghanistan.

The changes to Capital and Resource, together with changes in internal budgetary re-allocations and adjustments to working capital, will lead to an increased net cash requirement of £1,889,814,000.

I am pleased to announce new, alternative contracting arrangements for surface warship maintenance and repair. These arrangements were signalled as part of the wider Defence Industrial Strategy and today's announcement is an important step towards ensuring that the capability requirements of the Royal Navy can be met now and in the future.

Surface warship upkeep (generally known as refitting) contracts have increasingly been awarded following competition while operational (or fleet) time support is delivered through partnering arrangements under the Warship Support Modernisation Initiative. While these arrangements have delivered clear, value for money benefits to the MOD, recent force level reductions coupled with over capacity in the surface ship repair market prompted a review. The Department, in consultation with industry, undertook a study (the Surface Ship Support Study) to identify the optimum approach for the future maintenance and repair of surface warships (that is aircraft carriers, major amphibious vessels, destroyers, frigates and mine warfare vessels) that would deliver the most efficient, effective and sustainable support policy and offer best value for money to the taxpayer.

The study has concluded that the option best able to meet the needs of both the Department and industry would be the formation of a surface warship support alliance, which would include current providers of surface warship upkeep and fleet time support. We will now enter into detailed dialogue with industry to investigate the feasibility of delivering such support through an alliance. During this exploratory phase, which is planned to last up to two years, competition policy will be suspended, to enable the alliance concept to be developed and tested progressively in a controlled manner. The first package of surface warship upkeep to be included in the exploratory phase will be that for HMS Liverpool, HMS Iron Duke, HMS Cumberland, HMS Chiddingfold and HMS Penzance: it is currently planned to commence in autumn 2006. At the end of the exploratory phase there will be a review of the alliancing approach.

These new arrangements will promote a sustainable industrial base that retains key operational support and system upgrade capabilities within the UK, and are therefore vital to our ability to maintain and support the Royal Navy. We will be working closely with industry in a spirit of transparency and trust to ensure more effective joint planning for the longer term. The aim will be to improve the delivery of surface ship support, with benefits for the Royal Navy, industry and the taxpayer.

I am pleased to announce that the Ministry of Defence has today signed a contract with National Air Traffic Services (En Route) plc for approximately £725 million to provide an en route air traffic control facility to the Ministry of Defence until 2021. This contract enables military personnel to work alongside National Air Traffic Services (En Route) plc staff to manage air traffic within UK airspace.

The existing contract with National Air Traffic Services (En Route) plc expires in July. I am pleased to confirm that National Air Traffic Services (En Route) plc will continue to provide this facility for the next 15 years.

The signing of this new contract reflects the continued commitment of the Government to an integrated military-civilian approach to en-route air traffic control services. Such an approach, with military personnel working alongside National Air Traffic Services (En Route) plc staff, works to the benefit of all airspace users. This is a world leading concept and offers both operational and cost benefits to Defence.

I am pleased to announce that the following three companies have been chosen to compete for the role of Integrator for the Military Afloat Reach and Sustainability (MARS) programme:

AMEC

KBR

Raytheon Systems Ltd

MARS will form an essential part of the UK's Versatile Maritime Force, providing a suite of vessels to supply UK and allied vessels with fuel, food, ordnance and other support they need to sustain operations. MARS will also introduce a new capability, providing joint sea-based logistics for those operations where Host Nation Support is absent or limited or where we would wish to reduce our footprint ashore.

The MARS vessels, will have some military features, while being technically similar to specialist merchant ships. We therefore want the build of the MARS ships to harness the efficiency of specialist commercial shipbuilding practice. As indicated in the Defence Industrial Strategy, we expect the competition for the shipbuilding element of this project to be wide-ranging. UK yards and other suppliers will be given every opportunity to compete for this shipbuilding work and should see it as both a challenge and an opportunity to demonstrate world-class performance. With the high planned workload on CVF and Type 45, the complex warship design and integration capabilities that we intend to sustain in the UK will remain healthy for some years.

The Integrator's key role will be to use their expertise in engineering project management and supply chain relationships to drive good project management and partnering practice into a delivery team consisting of the MOD, the Integrator, and key suppliers. The selected Integrator will also help MOD identify the shipbuilders and other key suppliers, and develop the right partnering approach to ensure successful delivery of the MARS programme.

The shortlisting of potential Integrators marks a significant step forward for this project. The companies will now work with the Ministry of Defence to provide evidence of their suitability to be the MARS Integrator.

The MARS project, along with the future aircraft carriers, Type 45 destroyers and Astute submarines, forms part of the largest procurement programme of new ships for many years, reinforcing our firm commitment to provide UK Armed Forces with the enhanced naval capabilities needed to face the threats of the 21st Century.

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office of the Deputy Prime Minister's Departmental Expenditure Limits for 2005–06 will change as follows:

(1) The Office of the Deputy Prime Minister's Main Programmes DEL will be increased by £42,327,000 from £9,468,500,000 to £9,510,827,000 and the administration costs limit will also be increased by £454,000 from £335,358,000 to £335,812,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- (£000)

*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:

Take up of End Year Flexibility of £8,532,000 for Safer Communities Supported Housing Fund.

Drawdown of £21,234,000 in advance from the European Development Fund PES Pool for the European Regional Development Fund.

a net transfer of £6,797,000 to other Government Departments, comprising:

From Other Government Departments

Administration Costs (Central ODPM)

£524,000 baseline transfer from Cabinet Office for work by Parliamentary Counsel;

Administration Costs (Government Offices)

£210,000 from Department of Trade and Industry to cover work on UK Trade International.

To Other Government Departments

Programme Expenditure

£6,000,000 to the Department for Culture Media and Sport for the balance of the Office's contribution for 2005–06 towards the Olympic preparation infrastructure costs.

Administration Costs (Central ODPM)

£1,513,000 to the Department for Constitutional Affairs comprising of £262,000 for electoral work and £1,251,000 to cover resources for the Boundary Commission arising from the Machinery of Government change in May 2005.

Administration Costs (Government Offices)

£18,000 to the Department for Constitutional Affairs for electoral work arising from the Machinery of Government change in May 2005.

an increase in receipts of £91,429,000 offsetting increases in provision of £570,000 for Research; £500,000 for Planning Inspectorate; £9,000 for New Horizon programme; £40,000 for Green Flags programme; £250,000 for Ex-Housing Revenue Accounts Repayment; £2,681,000 for New Dimension; £96,000 for Firelink; £80,000 for Fire Services; £231,000 for administration costs; £853,000 for expenditure incurred on the Boundary Commission; £3,266,000 for Government Offices; £62,419,000 for non voted English Partnerships from land sales ; £21,234,000 for European Regional Development Fund and a reduction of £800,000 in receipts comprising of £700,000 for Fire Services and £100,000 for non voted Housing Corporation.

a transfer of £60,827,000 from resource to capital comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for Private Housing Renewal; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.

a transfer of £12,000,000 from capital to resource for Large Scale Voluntary Transfers.

a net transfer of £4,473,000 from voted to non voted provision comprising:

From voted to non-voted provision

a transfer of £6,598,000 to Housing Corporation comprising £22,000 from Housing Management Grant and £6,576,000 from Safer Communities Supported Housing Fund;

£1,600,000 to Thurrock Urban Development Corporation for approved projects;

£200,000 to Thames Gateway (London UDC);

£1,000 initial budget to FiReBuy.

To voted from non-voted provision

£135,000 from Thames Gateway South East of England Development Agency;

£1,291,000 from Housing Corporation to Homelessness

£2,500,000 from the Departmental Unallocated Provision to Better Services section .

As a result of the changes to Request for Resources 1, The Office of the Deputy Prime Minister's administration provision will be reduced by £797,000 from £337,324,000 to £336,527,000.

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

Drawdown of £22,930,000 in advance from the European Development Fund PES Pool for the European Regional Development Fund.

a transfer of £3,572,000 to other Government Departments comprising of £3,157,000 PES transfer to Wales from New Dimension; £415,000 to Department for Transport for administration capital.

an increase in receipts of £25,580,000 offsetting increases in provision of £2,328,000 for New Dimension (comprising of £1,147,000 from Northern Ireland; £1,033,000 from Scotland and £148,000 from Staffordshire ); £22,930,000 for European Regional Fund and £322,000 for the Emergency Fire Service in respect of Green Goddesses.

a transfer of £60,827,000 to capital from resource comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for National Register of Social Housing; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.

a transfer of £12,000,000 to resource from capital for Large Scale Voluntary Transfers

Within the capital element of the DEL there is a net transfer of £21,865,000 from non voted to voted provision comprising ;

From voted to non-voted provision

£6,652,000 for Departmental Unallocated Provision;

£600,000 from Growth Areas for capital projects;

£3,925,000 from Thames Gateway for capital projects.

To voted from non-voted provision

£1,800,000 to Thames Gateway;

£31,242,000 from Arms Length Management Organisations comprising £14,242,000 to Housing Market Renewal Fund, £5,000,000 to Growth Areas and £12,000,000 to Large Scale Voluntary Transfers programme.

The Office of the Deputy Prime Minister's Local Government DEL will be increased by £2,441,000 from £46,678,171,000 to £46,680,612,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000

*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:

take up of End Year Flexibility of £2,000,000 from Invest to Save Special Grant;

a transfer of £59,000 to the Department for Constitutional Affairs for the balance of the Machinery of Government change for 2005/06.

a transfer of £1,130,000 from voted Best Value Inspection to non voted to provide Valuation Tribunals with funding for early exits.

an increase in receipt of £254,000 fully offset by an increase in provision for Electoral law.

The change in the capital element of the DEL arises from a take up of End Year Flexibility of £500,000 from Invest to Save Special Grant.

The Government will legislate to modernise the Housing Corporation's decision making arrangements as necessary, at the earliest opportunity. This will clarify its ability to delegate decisions from the Board to subcommittees and to officers.

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Education and Skills Departmental Expenditure Limit (DEL) (including the Office for Her Majesty's Chief Inspector of Schools (OFSTED) which has a separate Estimate) will be increased by £264,668,000 from £30,765,762,000 to £31,030,430,000 and the administration costs limits will be increased by £337,000 from £276,418,000 to £276,755,000.

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

* 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.

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

Resource DEL

The increase in the resource element of the DEL of £390,798,000 arises from a £445,175,000 decrease in the voted element of the resource DEL and an increase of £835,973,000 in the non-voted element of the resource DEL mainly to the Department's Non-Departmental Public Bodies.

Voted Resource DEL

The £445,175,000 decrease in the voted element of the resource DEL arises from:

RFR 1

A £785,273,000 movement to non-voted, to support Schools and Teachers £226,489,000, to support Further Education and Lifelong Learning £427,958,000, to support Higher Education £118,192,000 and to support Children and Families £12,634,000. A movement from Schools capital £148,065,000 for City Academies £125,934,000, for Information Technology in Schools £13,369,000, Music and Ballet Schools £1,502,000 and for the Children and Workforce Development Council £7,260,000. The take up of End Year Flexibility of £29,267,000 for 14–19 Year Old programmes £16,615,000, Schools Standards £3,992,000, City Technology Colleges £3,790,000, Offender education £3,275,000, Foundation Degrees £1,000,000, Departmental Publicity and Research £539,000 and Derby College £56,000. A movement from RFR2 £29,800,000 for Childcare Support. A movement from RFR3 £22,196,000 for Local Area Agreements. A reduction of £56,900,000 of receipts for the Scientific Research Investment Fund. An increase of £3,586,000 in receipts for the Knowledge Transfer Funding for Universities. Transfers from the Cabinet Office £337,000 for the Parliamentary Council Office, from the Home Office £500,000 for Offender Education. Transfers to the Home Office £1,000,000 for the Leave to Remain Programme, the Department of Constitutional Affairs £2,743,000 for the Children's Adoption Act, to the Department of Health £125,000 for the Bichard Vetting Project and to the National Assembly for Wales £84,000 for students studying at the Open University.

RFR2

A movement to RFR1 voted of £29,800,000 for Childcare Support. The take up of End Year Flexibility £112,567,000 for Sure Start current £74,758,000 and capital £37,809,000 grants.

RFR3

A movement to RFR1 of £22,196,000 for Local Area Agreements.

Administration Cost Limits

The £337,000 increase in the Administration Cost Limit arises from the transfer from the Cabinet Office for the Parliamentary Council's Office.

Non-voted Resource DEL

The £835,973,000 increase in Non-voted resource DEL arises from the movement of £785,273,000 from RFR1 voted resource DEL. The take up of End Year Flexibility £39,588,000 for Higher Education Funding Council for England Science and Research £33,000,000, Qualifications and Curriculum Authority modernisation £6,338,000, Adult Learning Inspectorate administration £250,000. The movement from voted schools capital £50,000,000 for Higher Education Funding Council for England teaching infrastructure. A reduction of £56,900,000 Higher Education Funding Council for England for the Scientific Research Investment Fund and an increase of £3,586,000 for the Knowledge Transfer Funding for Universities. Transfers from the Department of Health £18,979,000 for University Medical Schools £10,500,000, Pensions Indexation £5,669,000, Clinical Academies £2,328,000 and College Social work £482,000. Transfer to the National Assembly for Wales £4,553,000 for students studying at the Open University.

Capital DEL

The decrease in the capital element of the DEL of £126,130,000 arises from a £210,769,000 decrease in the voted element of capital DEL and an increase of £84,639,000 in the non-voted element of capital DEL.

Voted Capital DEL

The £210,769,000 decrease in the voted element of the resource DEL arises from:

RFR1

A £82,640,000 movement to non-voted to support Schools and Teachers £77,867,000, to support Further Education and Lifelong Learning £3,901,000 and support for Higher education £872,000. A movement to voted resource £148,065,000 for City Academies £125,934,000, for Information Technology in Schools £13,369,000, Music and Ballet Schools £1,502,000 and for the Children and Workforce Development Council £7,260,000. A movement to non-voted capital £50,000,000 for Higher Education Funding Council for England teaching infrastructure. The take up of End Year Flexibility of £11,289,000 for Cybrarian capital modernisation £10,450,000 and Secure Accommodation £839,000.

RFR2

The take up of End Year Flexibility of £58,647,000 for Local Authority Capital grants.

Non-voted Capital DEL

The £84,639,000 increase in the non-voted capital DEL arises from the movement of £82,640,000 from voted capital DEL. The take up of End Year Flexibility £1,999,000 for Education Funding Council for England Technology Institutions £982,000, Qualifications and Curriculum Authority capital investment £820,000, Sector Skills Development Agency capital investment £195,000 and Investors in People capital investment £2,000.

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Environment Food and Rural Affairs DEL will be increased by £187,231,000 from £3,164,819,000 to £3,352,050,000 and the Administration Budget will be increased by £30,311,000 from £342,064,000 to £372,375,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000s

*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 (i) take up of £57,000,000 administration resources through end year flexibility; (ii) a switch of £5,000,000 from administration resources to capital; (iii) a transfer from the Cabinet Office of £311,000,000 of administration resources for Parliamentary Counsel costs; (iv) a transfer to the Welsh Assembly of £110,000 of programme resources for policy advice; a transfer from the Department of Agriculture and Rural Development for Northern Ireland of £1,500,000 of programme resources for the National Fallen Stock scheme; (v) transfer from the Department of Health of £60,000,000 for the Over Thirty Months scheme; (vi) take up of £8,000,000 of programme resources through end year flexibility; (vii) take up of £20,000,000 of programme resources from the reserve for Fuel Poverty;

The change in the capital element of the DEL arises from (i) take up of £40,530,000 of capital through end year flexibility; (ii) a switch of £5,000,000 from administration resources to capital.

I am today announcing publication of the consultation document on the review of England's Waste Strategy.

The consultation document sets out the progress made since 2000 in meeting the Government's objectives and implementing its policies with respect to waste, and consults on proposals for a revised strategy and the policies for implementing it. The consultation document is supported by a partial Regulatory Impact Assessment and Environmental Report.

We have made considerable advances since the original waste strategy was published in 2000. In particular recycling and composting of household waste has doubled in the last four years; nearly 50 per cent. of packaging waste is being recycled; and less of most types of waste is going to landfill.

But Government cannot be complacent despite these positive trends. There is much more that needs to be done to achieve our aim of reducing the amounts of waste generated and to meet our targets for diverting waste from landfill.

The approach set out in our consultation document has benefited from extensive discussions with stakeholders on the issues and options for the review. It includes a substantial shift in direction, with a broader approach and stronger emphasis on:

Reducing the growth in the amount of waste produced and decoupling its environmental impacts from economic growth, set firmly within our broader context of sustainable consumption and production;

achieving greater progress in the diversion of waste from landfill and reusing, recycling or composting more of what is left or, where this is not possible, using it for energy;

highlighting sustainable management of non-municipal waste, and greater integration between municipal and non-municipal waste;

The consultation document reflects the need to reduce the environmental impact of waste, including reducing the impact on climate change, conserving limited natural resources and reducing risk to health and the environment from potentially harmful substances in waste.

Waste prevention stands at the top of the waste hierarchy, but only limited progress has been made to decouple waste generation from economic growth. The waste strategy review proposes measures aimed at producing less waste by putting greater emphasis on eco-design, including through more agreements with producers and increased engagement in waste prevention of businesses and householders.

For waste that is produced there is a need to recover more resources. The revised strategy aims to facilitate development of a recycling culture by shifting our thinking so that the reuse and recycling of resources is part of our everyday activities whether at home, at work or during leisure. New, more ambitious national recycling and composting targets for household waste—40 per cent. in 2010 and 50 per cent. by 2020 —are being proposed, alongside advice and information to the public and more agreements with businesses to take responsibility for their end of life products.

Consultation has shown strong support for better integration between municipal and other waste streams, such as commercial, industrial, construction and demolition waste, which make up most of the waste produced, to gain potential economies of scale. The strategy review proposes new targets for a reduction in the percentage of commercial and industrial waste landfilled, helping small businesses to reduce and recycle their waste and a more joined up approach in managing waste from different sources facilitated by local authorities and regional bodies.

Subject to the outcome of this consultation and continuing policy development, the Government intend to publish a revised waste strategy for England later this year, setting out Government's vision and strategic direction on waste for the next 20 years, as well as the policies and actions which will be necessary to deliver the new strategy.

In his opening remarks to the London Conference on Afghanistan held on 31 January to 1 February, His Excellency Hamid Karzai, President of the Islamic Republic of Afghanistan, described narcotics and terrorism as the two gravest threats facing Afghanistan.

Despite a 21 per cent. reduction in opium poppy cultivation in 2005 (130,000 hectares in 2003–04 to 104,000 hectares in 2004–05), the trade in Afghan drugs remains a significant challenge to Afghanistan's long-term security, development and effective governance. It undermines the stability of the region and accounts for almost 90% of the world supply of opiates.

President Karzai has taken a strong lead in the struggle against the pervasive and corrosive threat posed by the cultivation, production and trafficking of narcotics. His Government has, with the support of the UK as the key partner nation for counter narcotics, recently reviewed and updated its National Drug Control Strategy to ensure its policy approach is the right one. The Strategy was endorsed by the Cabinet Sub-Committee on Counter Narcotics and approved by President Karzai in January. The international community also expressed its strong collective support for the updated Strategy following its presentation by the Afghan Minister for Counter Narcotics, Engineer Habibullah Qaderi, during the counter narcotics session of the London Conference.

The National Drug Control Strategy represents a balanced and comprehensive approach to the drug problem. It sets out four key priorities, which I believe will help make a greater impact on the trade and sustain the reduction in cultivation we have seen in 2005. These are:

disrupting the drugs trade by targeting traffickers and their backers

strengthening and diversifying legal rural livelihoods

reducing the demand for illicit drugs and treatment of problem drug users

developing state institutions at the central and provincial level

The Strategy also notes that "where there are legal livelihoods, a credible threat of eradication is needed in order to incentivise the shift away from poppy cultivation". It also highlights the importance of raising public awareness and improving international and regional co-operation on counter narcotics.

In recognition of the serious threat that narcotics pose to the broader reconstruction effort in Afghanistan and the importance of adopting a comprehensive approach equal to the scale of the challenge, counter narcotics is also included as a cross-cutting theme in the Afghanistan Compact between the Afghan Government and the international community which was also launched at the London conference. The Compact includes high level benchmarks to measure progress in the counter narcotics effort. These benchmarks are underpinned by the more detailed planning in the National Drug Control Strategy and the interim Afghan National Development Strategy, the third of the interlocking documents launched in London.

The challenge now is implementation. In support of the Government of Afghanistan's efforts, the UK will spend £270 million over this and the next two financial years, including some £130 million on legal rural livelihoods and institutional development from the Department for International Development. In the current financial year, about 70 per cent. of the rest of UK spending has been channelled into efforts to target traffickers and disrupt the trade. We expect this to remain a top priority.

As part of the activity to date, the UK has helped to establish and provide training for the Counter Narcotics Police of Afghanistan—the lead drug law enforcement agency, headquartered in Kabul, with seven provincial offices. The UK is also providing training for the Afghan Special Narcotics Force, an elite and highly trained force equipped to tackle high value targets across the country. We are also working with the international community to recruit and train a counter narcotics Criminal Justice Task Force of Afghan investigators, prosecutors and judges to work with the Counter Narcotics Police, to be able to push through successful drugs investigations and prosecutions.

The UK has funded the development of five drug treatment centres and is working with the Ministry of Counter Narcotics to determine how best to support activity in this area following the completion of UNODC's survey on drug use within Afghanistan late last year. We are also supporting the US led Poppy Elimination Programme (PEP) by funding the salaries of Afghan staff charged with raising awareness of the illegality of the opium industry and monitoring Governor-led eradication in priority poppy growing provinces.

From the spring, as my right hon. Friend the Secretary of State for Defence (Dr. John Reid) announced on 26 January, UK troops will be deployed to the South of Afghanistan, to Helmand province, in support of the UN authorised, NATO-led International Security Assistance Force. They will work to counter insurgency and help the appropriate authorities build security and government institutions to continue the progress of recent years. Above all, their presence will help the Afghans create the environment in which economic development and institutional reform—both essential to the elimination of the opium industry—can take place. ISAF forces will be able to help with the provision of training to Afghan counter-narcotics forces and will, when necessary, provide support to their operations. They will also help the Afghan Government explain their policies to the Afghan people. ISAF forces will not take part in the eradication of opium poppy or in pre-planned and direct military action against the drugs trade. As President Karzai has pointed out, this is a job for the Government of Afghanistan.

The UK is working hard to increase international support, including NATO and Coalition support, for the counter narcotics campaign. It was heartening to note the collective recognition at the London Conference of the need to increase resources to help the Government of Afghanistan deliver against the ambitious, but essential, benchmarks it has set itself. Several delegations, including the US (US$2 million), Sweden (US$2 million), Korea and the UK (at least £30 million (US$52.9 million) announced contributions to the Counter Narcotics Trust Fund set up to support the strategy in London. These contributions add to those already committed by Australia, New Zealand, the EC and Estonia (US$1.5 million, US$338,000, US$18.4 million and US$50,000 respectively), giving a total of $77 million pledged to the CN Trust Fund. The Fund will bring counter narcotics funding on budget; give the Afghans greater ownership over this important agenda; and ensure that assistance is targeted as effectively as possible.

The commitment of the Government of Afghanistan and the support of the international community are starting to yield results. Progress is being made. 2005 saw the establishment of a Ministry for Counter Narcotics in Afghanistan, the passage of vital counter narcotics legislation, the conviction of over 90 drug traffickers and the seizure of some 165 tonnes of opiates. The Counter Narcotics Police of Afghanistan is now 500 strong and the operations of the Afghan Special Narcotics Force are starting to make an impact on the trade, forcing traffickers to shift their modus operandi, moving and storing drugs in smaller quantities.

In parallel, the National Rural Access Programme has restored thousands of kilometres of roads and renovated hundreds of irrigation systems through labour-intensive cash for work schemes aimed at providing basic employment opportunities for the rural poor. Work is also taking place to improve social protection for the poor (through the creation of social safety nets); to improve access to finance and credit; to develop better provincial development planning processes and research programmes into new crops and markets.

It will not be easy to sustain last year's reduction in cultivation. Sustainable drug elimination strategies take time. Afghanistan will continue to require the strong support of the international community and the firm commitment of its own Government. As the key partner nation for counter narcotics the UK remains committed to the challenge and to supporting the delivery of the National Drug Control Strategy. We believe this represents the best means of securing a sustainable reduction in the cultivation and trafficking in opium.

Subject to parliamentary approval of any necessary supplementary estimate, the Foreign and Commonwealth Office departmental expenditure limit (DEL) will be increased by £185,034,000 from £1,818,884,000 to £2,003,918,000. The administration budget will be increased by £29,439,000 from £796,238,000 to £825,677,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000s

*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:

Request for Resources 1 (RfRl) Administration

I. Reserve claim of £1,386,000 in respect of Overseas Pricing Mechanism.

II. Take up of £5,000,000 End Year Flexibility (EYF) entitlement.

III. Take up of £23,092,000 Non-Cash End Year Flexibility (EYF) entitlement of which £20,000,000 is impairments DUP and £3,092,000 is administration non cash.

IV. Budget Cover transfer from the Cabinet office of £61,000 for the Parliamentary Counsel Office. Budget Cover transfer to the Security and Intelligence Agencies (SIA) of £100,000 in respect of Planned Activity.

Programme

I. Reserve claims of £8,000,000 from the Emergency Disaster Reserve, £10,500,000 from the reserve to pay for costs incurred from the Tsunami.

II. Reserve claims of £10,000,000 for the international organisations cost sharing agreement, £12,600,000 for Consular premium collected in the UK and £1,407,000 for the British Council Overseas Pricing Mechanism.

III. Transfer of £8,500,000 from RfR2 for the Afghan Delivery Plan.

IV. Budget Cover transfer from the Home Office, £4,000,000 in respect of the Afghan Delivery Plan

V. Draw down of £4,000,000 and £12,000,000 from the Departmental Unallocated Provision

VI. Transfer to the DEL Reserve of £4,349,000 in respect of the Overseas Pricing Mechanism.

VII. Transfer of £1,500,000 to RfR 2 to meet Conflict Prevention activity costs in Iraq.

VIII. PES transfer to the SIA of £875,000 for Planned Programme Activity

IX. PES transfer to the MOD of £2,100,000 for overseas Programme funding.

X. Draw Down from the Departmental Unallocated Provision (DUP) of £20,000,000 for Impairments

Neutral Changes

I. An increase in income and expenditure of £10,000,000 due to an increase in sales into wider markets.

II. A non cash to near cash switch of £20,000,000

III. An increase in income and expenditure of £14,400,000 relating to Consular activity and income. An increase in income and expenditure of £39,100,000 relating to increased Visa activity and income.

Request for Resources 2 (RfR2)

Programme

I. Draw down of £78,533,000 from the Africa Peacekeeping Main Estimate Provision.

II. Draw down of £92,124,000 from the Global Peacekeeping Main Estimate Provision of which £64,000,000 is transferred to the Ministry of Defence.

III. Take up of £6,812,000 EYF entitlement from the Global Conflict Prevention Pool.

IV. Draw down of £10,000,000 DUP from the Global Conflict Prevention Pool.

V. Transfer from RfRl; £1,500,000 to meet Conflict Prevention activity costs in Iraq.

VI. Budget cover transfer from Global Conflict Prevention pool of £334,000 to the SIA, £2,000,000 to DfID and £3,200,000 to the MOD.

VII. Budget cover transfer to DfID from the Africa Conflict Prevention Pool of £150,000 for agreed programme activity.

VIII. A transfer of £8,500,000 to RfRl for the Afghan Delivery Plan of which £2,500,000 comes from the Africa Peacekeeping provision and £6,000,000 from the Global Peacekeeping provision.

Capital

I. Budget cover transfer from the Home Office of £3,359,000 for capital costs incurred as part of UK Visas Biometrics programme.

II. Claim on the DEL reserve for £360,000 in respect of the Overseas Pricing Mechanism

III. Take up of £10,000,000 EYF entitlement.

Neutral Change

I. An increase in income and expenditure of £3,000,000 relating to the asset recycling agreement.

Subject to the necessary Supplementary Estimate, the Department of Health's element of the Departmental Expenditure Limit (DEL) will be increased by £112,322,000 from £78,591,189,000 to £78,703,511,000 and the Administration Cost Limit will be increased by £484,000 from £247,629,000 to £248,113,000. The Food Standards Agency DEL will be increased by £951,000 from £144,424,000 to £145,375,000. The overall DEL including the Food Standards Agency will be increased by £113,273,000 from £78,735,613,000 to £78,847,886,000. The impact on resource and capital are set out in the following table.

*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 increased by £112,322,000 to reflect take up of £200,000,000 capital end year flexibility as announced in the public expenditure white paper (Cm 6639) July 2005 and £1,461,000 from the invest to save budget for social care projects. In addition, transfers have been agreed with the DHSS Northern Ireland of £554,000 for out of area treatments and from the Cabinet Office of £484,000 (administration costs) for services of the Parliamentary counsel. These increases are offset by transfers to the Department for Education and Skills of £18,854,000 mainly for capital building programmes and pension costs; a transfer to the Department for Environment and Rural Affairs of £60,000,000 for a contribution towards the over thirty months scheme; to the Department for Constitutional Affairs of £1,500,000 capital associated with the transfer of the mental health review tribunals; to the Scottish Executive of £4,140,000 for out of area treatments; to the National Assembly for Wales of £5,684,000 mainly for out of area treatments and cross border flows.

The Department of Health's administration cost limit has increased by £484,000 from £247,629,000 to £248,113,000 as detailed above.

The changes to the Food Standards Agency resource element of the Departmental Expenditure Limit arises from an increase in MHS gross cost of £5,000,000 offset by a similar increase in the income limit. Due to this neutral change the Programme DEL has been increased by £1,000 to ensure there is a token Supplementary amount to be voted.

The changes to the Food Standards Agency capital element of the Departmental Expenditure Limit arises from increased capital expenditure of £950,000 for the renewal of IT infrastructure and strengthening IT contingency arrangements.

New DEL

Plans to change the Charity Commission's Departmental Expenditure Limit (DEL) and administration budget for 2005–06.

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Charity Commission DEL will be increased by £250,000 from £32,607,000 to £32,857,000 and the administration budget will be increased by £250,000 from £32,153,000 to £32,403,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000

*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: take up of £250,000 Efficiency Challenge Fund (ECF) monies to assist with the delivery of efficiency targets.

The increases will be funded by the take up of ECF monies allocated in the SR04 settlement.

The Secretary of State for the Home Department (Mr. Charles Clarke): Plans of changes to the Departmental Expenditure Limits ("DEL") and Administration Budget for 2005–06.

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Home Office's Departmental Expenditure Limits for 2005–06 will be increased by £30,348,000 from £13,645,786,000 to £13,676,134,000 and the Administration Budget will be increased by £833,000 from £704,526,000 to £705,359,000.

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

New DEL -- £000s

*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.

£000s

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department for International Development departmental expenditure limit (DEL) will be increased by £46,111,000 from £4,472,082,000 to £4,518,193,000. The administration budget will be increased by £11,000 from £238,970,000 to £238,981,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

New DEL -- £000s

*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 change in the resource element of the DEL arises from

Voted

A partial draw down of £50,000,000 of other resource end year flexibility, as set out in the Public Expenditure 2004–05 Provisional Outturn White Paper (Cm 6639) within Request for Resources 1 for humanitarian assistance following the earthquake in Pakistan.

An increase of £11,000 in administration costs within Request for Resources 1 relating to funds transferred from the Cabinet Office in respect of DFID's use of the Parliamentary Counsel's Office.

An increase of £2,500,000 within Request for Resources 2 from the take up of Africa conflict prevention departmental unallocated provision for planned programme activity on conflict prevention.

A transfer of £2,000,000 within Request for Resources 2 in respect of a transfer from the Foreign and Commonwealth Office for planned programme activity on global conflict prevention.

Non -voted

A reduction of £2,500,000 in Africa conflict prevention departmental unallocated provision relating to the take up of provision within DFID's Request for Resources 2

A reduction of £500,000 in Africa conflict prevention departmental unallocated provision relating to a transfer to the Ministry of Defence to fund approved projects on conflict prevention in Africa.

An increase of £150,000 in Africa conflict prevention departmental unallocated provision in respect of a transfer from the Foreign and Commonwealth Office from savings on conflict prevention projects in Africa.

A reduction of £3,050,000 following the classification of the Retrospective Terms Adjustment charge on interest foregone by the Consolidated Fund on the conversion of loans to grants, as outside public expenditure.

A reduction of £2,500,000 following the reclassification of interest income on bilateral and multilateral loans from outside the OFID resource budget to the Resource DEL.

Subject to Parliamentary approval the Northern Ireland Office (NIO) will be taking a 2005–06 Spring Supplementary Estimate. The effect this will have is to increase the NIO's Resource DEL by £36,241,000 from £1,199,288,000 to £1,235,529,000 and decrease Capital DEL by £580,000 from £65,928,000 to £65,348,000. Within the DEL change, the impact on resource and capital are as set out in the following table:

The change in the resource element of the DEL by £36,241,000 arises from an increase in PSNI pension current service cost of £36,000,000 and the surrender of PES transfers from other Government Departments of £241,000.

The change in capital DEL by £580,000 is due to the surrender of a PES transfer to another Government Department.

Subject to parliamentary approval of the necessary Supplementary Estimates, the Scotland Departmental Expenditure Limit (DEL) will be increased by £108,539,000 (net of depreciation) from £23,049,735,000 to £23,158,274,000.

The DEL increase takes account of the following:

the take-up of End Year Flexibility (EYF) by the Scottish Executive amounting to £135,186,000; and

the take-up of 2005 Pre-Budget consequentials by the Scottish Executive amounting to £2,124,000.

The DEL increase also includes the following transfers between the Scottish Executive and other Government departments, amounting to a net increase of £14,648,000. These are:

a transfer of £2,280,000 from the Department for Transport (Rail);

a transfer of £4,140,000 from the Department of Health (Out of Area Treatments);

a transfer of £228,000 from the Northern Ireland Executive (Out of Area Treatments); and

a transfer of £8,000,000 from the Department for Constitutional Affairs (Judicial Salaries).

The increases will be offset by interdepartmental transfers as detailed above or charged to the DEL Reserve and will not therefore add to the planned total of public expenditure.

Subject to Parliamentary approval of any necessary Supplementary Estimate, the Attorney General's DEL will be increased by £14,290,000 from £702,733,000 to £717,023,000 and the Administration budget will be increased by £167,000 from £114,761,000 to £114,928,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

* 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 Crown Prosecution Service's (CPS) element of the Attorney General's DEL will be increased by £13,708,000 from £601,813,000 to £615,521,000 and the Administration budget will be reduced by £415,000 from £57,953,000 to £57,538,000.

The change in the CPS's DEL arises from:

The utilisation of £10,400,000 resource End Year Flexibility to support increased expenditure on the prosecution of criminal cases

An increase of £550,000 Programme resources due to the reallocation of resource DEL budgetary cover from the Home Office to the Crown Prosecution Service. This is required to provide additional resources from Criminal Justice Information Technology (CJIT) to fund the re-commissioning of a test environment for Exchange Integration Service Stream Release 1 (EXISSR1) and enhancements to the Witness Management System.

An increase of £1,240,000 Programme resources due to the reallocation of resource DEL budgetary cover from the Department for Constitutional Affairs to the Crown Prosecution Service. This is required to provide additional resources from Criminal Justice Information Technology (CJIT) to aid the development of the IT tools necessary to support Case Progression Officers.

An increase of £2,500,000 Programme resources due to the reallocation of resource DEL budgetary cover from the Department for Constitutional Affairs to the Crown Prosecution Service. This is required to provide additional resources to help fund the Statutory Charging programme.

A decrease of £173,000 Programme resources due to the reallocation of resource DEL budgetary cover from the Crown Prosecution Service to the Home Office. This is required to provide additional resources to fund the "No Witness No Justice" partnership programme to improve services to prosecution witnesses in Court.

A decrease of £415,000 Administration resources due to the reallocation of resource DEL budgetary cover, within the Attorney General's resource DEL, from the Crown Prosecution Service to HM Procurator General & Treasury Solicitors. This is required to provide additional resources to help fund the Legal Secretariat to the Law Officers.

A decrease of £394,000 Capital due to the reallocation of capital DEL budgetary cover from the Crown Prosecution Service to the Home Office. This is required to provide additional resources to fund the "No Witness No Justice" partnership programme to improve services to prosecution witnesses in Court.

Other changes which have no net effect on the CPS's DEL are:

Programme expenditure changes in respect of an increase in the Crown Prosecution Service's other current expenditure costs offset by a corresponding increase in Programme income received in respect of costs awarded to the CPS in court. This has increased by £4,000,000 from £29,300,000 to £33,300,000.

The Serious Fraud Office's (SFO) element of the Attorney General's DEL will not change from £46,275,000 and the Administration budget will not change from £27,175,000.

The Revenue and Customs Prosecutions Office's (RCPO's) element of the Attorney General's DEL will be reduced by £16,000 from £37,788,000 to £37,772,000 and the Administration Budget will be reduced by £766,000 from £19,412,000 to £18,646,000.

The changes in RCPO's DEL arise from:

The transfer of £750,000 resource DEL to capital DEL to cover additional capital spending. This is required to provide additional resources to help fund the accommodation improvements demanded by the Gower Hammond and Butterfield Reviews.

A decrease of £16,000 Administration resources due to the reallocation of resource DEL budgetary cover, within the Attorney General's resource DEL, from the Revenue and Customs Prosecutions Office to HM Procurator General & Treasury Solicitors. This is required to provide additional-resources to help fund the provision of administrative services by the Legal Secretariat to the Law Officers.

The Treasury Solicitor's Department (TSD) element of the Attorney General's DEL will be increased by £598,000 from £16,857,000 to £17,455,000 and the Administration Budget will be increased by £1,348,000 from £10,221,000 to £11,569,000.

The change in TSD's DEL arises from:

Administration costs changes in respect of a reallocation of resource DEL budgetary cover, within the Attorney General's resource DEL, of £415,000 from the Crown Prosecution Service, and £16,000 from the Revenue and Customs Prosecutions Office to the Treasury Solicitors Department to meet the cost of policy support to the Attorney General provided by the Legal Secretariat to the Law Officers (LSLO).

Take up of capital End Year Flexibility of £750,000 to meet the capital commitments of TSD and LSLO.

Other changes, which have no net effect on TSD's DEL, are:

Administration costs changes in respect of the transfer of £61,000 from the Treasury Solicitors' Department Agency to meet the cost of policy support to the Legal Secretariat to the Law Officers (LSLO).

Administration costs changes in respect of a £15,750,000 increase in Treasury Solicitors' Department Administration costs offset by a corresponding increase in Administration income to meet an additional demand for legal services provided to other Government Departments.

Administration costs changes in respect of a £45,000 increase in Treasury Solicitors' Department Administration costs offset by a corresponding increase in Administration income for the cost of shared finance services provided to the Revenue and Customs Prosecutions Office.

Administration costs changes in respect of a £73,000 increase in Treasury Solicitors' Department Administration costs offset by a corresponding increase in Administration income arising from a rate rebate.

Administration costs changes in respect of a £917,000 transfer of depreciation costs from other current to administration costs.

New DEL

My right hon. Friend the Attorney General has made the following Oral Statement.

"I wish to make a statement announcing the outcome of my review of Shaken Baby Syndrome cases and to also make the House aware of new guidance relating to expert witnesses in court.

The House will recall the high profile cases of Sally Clark, Trupti Patel and Angela Cannings, all of which related to allegations of unlawful killing of children. It was following these cases that I undertook to review past cases where a parent or carer had been convicted of killing a baby or infant under the age of two, in the past 10 years.

In December 2004 I reported to the House that 297 cases had been reviewed and 28 were found to have questionable convictions. Today I report that I have fulfilled my pledge to re-examine the 88 cases which were identified at the outset of this process as shaken baby cases.

The review of the shaken baby cases was undertaken once the Court of Appeal ruled in July last year. Today I am able to report that three cases have been found to have questionable convictions.

The three convictions identified as questionable include:

one male convicted of murder in 2001 and sentenced to life imprisonment [and currently still serving that sentence]

one male convicted of manslaughter in 2001 and sentenced to three years imprisonment [no longer in prison]

one female convicted of manslaughter in 1994 and sentenced to seven years imprisonment [no longer in prison—carried out extensive searches but appears to have left the country or changed her name]

The cases of Sally Clark, Trupti Patel and Angela Cannings generated a wide ranging medical debate about infant deaths and also the causes of shaken baby syndrome.

The judgment of the Court of Appeal, which considered the evidence of 25 expert witnesses from all disciplines, is now considered the case law authority on shaken baby syndrome and has helped clarify the law.

It stated that the presence of all or some of three particular injuries is a strong pointer towards shaken baby syndrome. The Court was therefore uniquely placed to comment upon this difficult area, and the differing medical evidence put before it.

The Court's primary focus was on the significance of the so-called "triad" of injuries which, when all or some are present in an infant, is suggestive of deliberate harm. These consist of subdural haemorrhaging, retinal haemorrhaging and encephalopathy or brain swelling.

The Court's critical focus was on the degree of force required to cause those injuries, or indeed whether any force was required. The Court of Appeal found that:

The presence of the triad of injuries is consistent with shaken baby syndrome, but the triad alone cannot automatically lead to a conclusion that the infant has been shaken;

The triad however remains ". . . a strong pointer . . . " to shaken baby syndrome.

Taking into account the judgment of the Court of Appeal, a thorough review of the 88 cases was carried out by a senior CPS lawyer and independent Counsel, who were part of a team that conducted my wider review into infant homicides in 2004. I have taken an active personal role in supervising the review and believe we have acted carefully, and as swiftly as practicable, in reaching conclusions.

The review has found that three convictions may give cause for concerns as to the safety of those convictions. In the considerable majority of the remaining SBS cases, other extraneous evidence existed to support the findings of shaken baby syndrome.

A few examples are: evidence the infant had been struck against a wall causing catastrophic injuries; admissions to shaking and punching the infant; earlier fractures; and head injuries occurring on two separate occasions.

My office has written to the legal representatives of those involved in the three cases suggesting that it might be appropriate for the safety of their client's conviction to be referred to the Court of Appeal or the Criminal Cases Review Commission.

The letters stress that the determination of the review does not mean that the convictions are unsafe. That will be a matter for the Court of Appeal to decide in due course, if the defendants decide to take the matter further.

While I believe, after careful review, the vast majority of shaken baby syndrome convictions do not give rise to concern, it remains open to anyone with such a conviction to seek leave to appeal to the Court of Appeal or a referral to the Criminal Cases Review Commission.

To ensure that this problem does not happen again, the DPP will be issuing further guidance to prosecutors as a result of this review.

Infant death cases such as those of Angela Cannings and Sally Clark led to concern among practitioners and the public at the way in which the criminal dealt with the issues surrounding expert evidence. It is a concern I share.

I can therefore announce today that, as a result of that work between the Crown Prosecution Service and ACPO, we will now be implementing new guidance that focuses on the requirements made on such witnesses in terms of disclosure. Where experts are police employees, they will continue to work to the requirements of the Criminal Procedure and Investigations Act 1996, and in particular the obligations to retain, record and reveal.

Experts who are not police employees will receive a guidance booklet setting out what is required of them, including the need to reveal to the investigator all the material they will have created in working on the case. They will also be required to certify that they have revealed to the prosecution any information that might adversely affect their credibility and/or competence as an expert witness. They are reminded that they must not give expert opinion beyond their area of expertise. This guidance will set standards across the criminal justice system for the use of expert witnesses.

The new guidance is one of a number of initiatives underway across government which will improve the management of expert evidence in the criminal courts. In addition the Criminal Procedure Rule Committee is considering new rules that would provide explicitly for pre-trial discussion between experts to identify areas of agreement or disagreement and so save court time.

I believe the clear and thorough guidelines I have announced today will assist in bringing about greater confidence in the criminal justice system in handling such difficult cases where expert witnesses are called on".

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department of Trade & Industry's DEL will be increased by £576,302,000 from £6,374,488,000 to £6,950,790,000 and the administration costs limit will be reduced by £27,917,000 from £391,523,000 to £363,606,000.

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

*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:

RfRl

i) utilisation of £2,444,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of University Innovation Centres capital grants;

ii) utilisation of £2,055,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of increased balance sheet provisions for Enemy Property liabilities;

iii) utilisation of £87,000,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of increased balance sheet provisions for British Shipbuilders liabilities;

iv) utilisation of £ 10,000,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of the non-cash costs of the Concessionary Fuel liability and associated assets;

v) a transfer of £305,000 from the Home Office in respect of the Commission for Equality and Human Rights transition costs;

vi) a transfer of £38,000 from the Department for Constitutional Affairs in respect of the Commission for Equality and Human Rights transition costs;

vii) a transfer of £229,000 from the Department for Work and Pensions in respect of the Commission for Equality and Human Rights transition costs;

viii) a virement of £18,500,000 to non-voted expenditure (of which £2,000,000 vired to non-voted capital) in respect of the MG Rover support package funded by the Regional Development Agencies;

ix) a transfer of £167,000,000 from the Ministry of Defence in respect of non-voted expenditure of the Nuclear Decommissioning Authority;

x) a transfer of £224,000 to the Cabinet Office in respect of the Commission for Equality and Human Rights transition costs;

xi) a virement of £11,497,000 voted non-cash to non-voted near-cash expenditure in respect of British Energy liabilities;

xii) a virement of £21,062,000 from capital grants to capital expenditure, utilising underspends to fund increased expenditure on the National Physical Laboratory (£2,300,000), the Employment Tribunals Service (£4,600,000) and Excellent Corporate Services (£14,162,000);

xiii) utilisation of £31,503,000 from the unused balance of the Department's non-Science End-Year Flexibility entitlement (£3,000,000 near-cash, £8,503,000 non-cash vired to near-cash and £20,000,000 administration vired to programme) in respect of non-voted expenditure on British Energy liabilities;

xiv) utilisation of £ 114,021,000 loaned from the unused balance of the Department's Science End-Year Flexibility entitlement in respect of non-voted expenditure on British Energy liabilities;

xv) utilisation of £979,000 loaned from the unused balance of the Department's End-Year Flexibility entitlement to fund programmes reduced in order to fond British Energy liabilities;

xvi) a virement of £54,024,000 from non-voted near-cash resource expenditure to non-voted capital expenditure in respect of the Nuclear Decommissioning Authority;

xvii) a virement of £1,500,000 from non-voted capital expenditure to voted non-cash resource expenditure in respect of the Nuclear Decommissioning Authority;

xviii) utilisation of £5,000,000 from the unused balance of the Department's non-cash End-Year Flexibility entitlement in respect of non-voted expenditure of the Regional Development Agencies;

xix) utilisation of £3,000,000 from the unused balance of the Department's non-cash End-Year Flexibility entitlement in respect of non-voted expenditure of the Competition Commission;

xx) a virement of £71,265,000 from non-voted capital grants expenditure to non-voted capital expenditure in respect of the Regional Development Agencies;

RfR2

i) a reduction of £4,400,000 in the non-voted non-cash expenditure of the Natural Environment Research Council due to a windfall gain to the Council's non-cash following implementation of FRS15;

ii) a virement of £18,717,000 from non-voted capital expenditure to non-voted capital grants expenditure of the Research Councils;

Also within the change to resource DEL, the changes to the administration costs limit are (RfRl):

i) a transfer of £1,587,000 from the Cabinet Office in respect of the Parliamentary Counsel Office;

ii) a transfer of £24,000 from the Home Office in respect of the Commission for Equality and Human Rights transition costs;

iii) a transfer of £126,000 from the Department for Constitutional Affairs in respect of the Commission for Equality and Human Rights transition costs;

iv) a transfer of £165,000 to the Cabinet Office in respect of the Commission for Equality and Human Rights transition costs;

v) a transfer of £210,000 to the Office of the Deputy Prime Minister in respect of Government Offices for the Regions;

vi) a transfer of £100,000 to the Department for Culture Media and Sport in respect of the Minister for Women; and

vii) a virement of £29,179,000 to non-voted programme expenditure in relation to British Energy liabilities.

Office of the Deputy Prime Minister Main Estimate

i) utilisation of £120,000,000 of the Department's 2006–07 Departmental Expenditure Limit for European Regional Development Fund expenditure borne of the Office of the Deputy Prime Minister's Estimate under the procedures for anticipating future years' expenditure that apply to this budget.

The change in the capital element of the DEL arises from: RfRl

i) virement of £14,000,000 from non-voted expenditure of the Regional Development Agencies to voted expenditure in respect of the London Development Agency;

ii) virement of £500,000 to non-voted expenditure in respect of increased contributions from other Government Departments for the Regional Development Agencies for the Northern Way Growth Fund;

iii) a virement of £21,062,000 from capital grants to capital expenditure, utilising underspends to fund increased expenditure on the National Physical Laboratory (£2,300,000), the Employment Tribunals Service (£4,600,000) and Excellent Corporate Services (£14,162,000);

iv) utilisation of £6,190,000 from the unused balance of the Department's End-Year Flexibility capital grants entitlement to provide cover for an in-year shortfall in recovery of a loan to Ofcom due to early repayment in 2004–05;

v) utilisation of £6,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for the Enterprise Capital Fund/Early Growth Fund;

vi) utilisation of £23,900,000 from the unused balance of the Department's End-Year Flexibility entitlement to provide for a shortfall in non-voted Launch Investment receipts;

vii) a virement of £54,024,000 from non-voted near-cash resource expenditure to non-voted capital expenditure in respect of the Nuclear Decommissioning Authority;

viii) a virement of £1,500,000 from non-voted capital expenditure to voted non-cash resource expenditure in respect of the Nuclear Decommissioning Authority;

ix) a virement of £2,000,000 from voted capital grants to non-voted capital in respect of the MG Rover support package funded by the Regional Development Agencies;

x) a virement of £71,265,000 from non-voted capital grants expenditure to non-voted capital expenditure in respect of the Regional Development Agencies;

RfR2

i) an increase of £4,000,000 in the non-voted expenditure of the Biotechnology and Biological Sciences Research Council and an equivalent increase in voted receipts;

ii) a virement of £ 18,717,000 from non-voted capital expenditure to non-voted capital grants expenditure of the Research Councils.

Office of Fair Trading

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Office of Fair Trading's DEL will be increased by £1,237,000 from £58,403,000 to £59,640,000.

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

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

i) utilisation of £487,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of the launch of "Codes Program" delayed from prior year.

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

ii) utilisation of £750,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of the launch of "Codes Program" delayed from prior year.

Subject to parliamentary approval of any necessary supplementary estimate, the Department for Transport DEL for 2005–06 will be increased by £270,488,000 from £11,723,915,000 to £11,994,403,000 and the administration costs limits will be increased by £5,365,000 from £264,558,000 to £269,923,000.

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

*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 £5,365,000)

Voted: total increase of £5,365,000.

RfR1

(i) Partial repayment of £5,000,000 from the Driver and Vehicle Licensing Agency for Continuous Registration start up costs arising from receipts on the scheme; and

(ii) a transfer of £365,000 from the Cabinet Office (Parliamentary Counsel Office) to provide for the introduction of inter departmental charges for Parliamentary Counsel costs.

Resource Change: Programme (total increase of £751,444,000)

Voted: total decrease of £74,248,000

RfR 1

(i) take up of £350,843,000 non cash reserve claim for the Highways Agency in respect of depreciation of the road network, writedown of fixed assets, net increase in provisions and loss on disposal of assets.

(ii) take up of £1,421,000 end year flexibility, comprising:

(a) £536,000 Invest to Save Budget for the Mobility and Inclusion Unit and;

(b) £885,000 for European Regional Development Fund projects.

(iii) £17,163,000 Machinery of Government transfer and equivalent receipts from the Cabinet Office in respect of the Government Car and Despatch Agency. The resource costs and income of the Agency are included within the DfT Administration Cost Limit.

(iv) a net transfer of £5,881,000 to other government departments comprising:

(a) £3,808,000 to the Ministry of Defence in respect of the National Metrological Programme and Severe Weather Warning Service;

(b) £2,280,000 to the Scottish Executive in respect of the change in responsibility for making payments to the Strathclyde Passenger Transport Executive from the Strategic Rail Authority;

(c) £500,000 to the Office of the Rail Regulator in respect of the write back of assets; partially offset by

(d) £707,000 from HM Revenue and Customs for the design panel funding associated with work on road pricing; and

(v) a net transfer to non-voted resource provision of £866,572,000 comprising:

(a) £796,265,000 to the Strategic Rail Authority to allow it to continue paying network grants until the end of the financial year;

(b) £21,753,000 to cover the shortfall in the Strategic Rail Authority budget arising from the reclassification of the British Rail Board (Residuary) as a public corporation where only its subsidy and borrowing score within DEL;

(c) £1,313,000 for the Rail Passenger Council;

(d) £13,822,000 in respect of an adjusted budget requirement for the Strategic Rail Authority, which is to continue making Network Grant payments until the end of 2005–06;

(e) £165,000 net reduction in utilisation of National Freight Company provision;

(f) £1,065,000 to cover Driver and Vehicle Licensing Agency cost of capital and depreciation costs; and

(g) £32,189,000 to the Departmental Unallocated Provision including £31,604,000 arising from detrunking requirements transferred from the Highways Agency.

(vi) a net transfer of £442,141,000 from non voted resource provision.

(vii) a net transfer of £8,800,000 from the capital voted provision, comprising:

(a) £7,500,000 in respect of Trans European Network capital grants; and

(b) £1,300,000 for development of improved e-services in DVO Group.

(viii) Increased receipts of £5,000,000 generated by the Continuous Registration scheme to support the equivalent increase on administration resource.

Non Voted: total increase of £825,692,000.

RfR 1

(i) take up of £138,066,000 non cash reserve claim for the Highways Agency for an adjustment in respect of utilisation of provisions;

(ii) take up of £174,833,000 end year flexibility (including £58,540,000 vired from capital to capital grants) in respect of Network Grant;

(iii) a net transfer of £57,527,000 from the non voted capital Departmental Unallocated Provision for Network Grants;

(iv) a net transfer of £866,572,000 from the voted resource provision;

(v) a net transfer of £30,835,000 from voted capital provision in respect of Network Grant; partially offset by:

(vi) a transfer to the voted resource provision of £442,141,000 comprising:

(a) £391,729,000 machinery of government adjustment to reflect the transfer of Strategic Rail Authority activities to the Department;

(b) £7,100,000 from the Strategic Rail Authority to Rail Group budgets;

(c) £25,042,000 Channel Tunnel Rail Link de-risked capital grant budget to non—de-risked grants; and

(d) £18,270,000 cover reflecting increased Driver and Vehicle Licensing Agency receipts.

Capital Change (total decrease of £94,124,000)

Voted: total decrease of £90,950,000

RfR1

(i) take up of £1,385,000 end year flexibility for European Regional Development Fund projects;

(ii) £1,110,000 Machinery of Government net transfer (including receipts of £150,000 from the Cabinet Office in respect of the Government Car and Despatch Agency);

(iii) £415,000 transfer from the Office of the Deputy Prime Minister in respect of its share of joint IT project costs;

(iv) £600,000 from capital non voted Departmental Unallocated Provision for the Promoting Sustainable Travel Initiatives;

(v) a transfer to non voted capital provision of £55,215,000 comprising:

(a) £39,571,000 for de-trunking;

(b) £5,500,000 for the British Transport Police Authority;

(c) a transfer of £3,506,000 to the Driver and Vehicle Licensing Agency for capital projects including Vehicle System Software Re-Platforming and PFI schemes;

(d) a transfer of £4,000,000 to the British Transport Police Authority (£3,327,000) and the Greater London Authority (£673,000);

(e) £2,311,000 from National Air Traffic Services additional receipts to the Driver and Vehicle Licensing Agency; and

(f) £327,000 from National Air Traffic Services additional receipts to the Greater London Authority.

(vi) a transfer of £30,835,000 to non voted resource provision;

(vii) a transfer of £8,800,000 to voted resource provision and;

(viii) reduction of £390,000 in the Highways Agency receipts to compensate for loss on sale of assets.

Non-Voted total decrease of £3,174,000

RfR1

(i) a transfer of £57,527,000 to resource non voted provision;

(ii) a transfer of £600,000 to capital voted provision;

(iii) £262,000 decrease in respect of increased Humber Bridge receipts; partially offset by:

(iv) a transfer of £55,215,000 from capital voted provision.

With construction of the link nearing completion, my Department has been considering its future relationship with the project and with London and Continental Railways, who are responsible for the construction and operation of the Rail Link. A number of options have been considered, touching on future financial arrangements, the current structure of controls in light of current best practice in such projects and the structure of LCR and its subsidiary companies. Officials have for some time held discussions with LCR about the best long term commercial structure. Separately, my Department has recently been approached by a third party, asking about the Department's attitude to their discussing with LCR's shareholders the potential acquisition of their current holdings, and about the issues of finance, structure and control mentioned above. My Department has made clear that any changes to LCR's ownership, corporate structure or controls structure will be considered against the primary objective of ensuring continuing value for taxpayers' money.

From 11 November 2007, responsibility for Silverlink Metro services will be transferred to Transport for London (TfL).

Silverlink Metro consists of train services between Richmond and North Woolwich, Gospel Oak: and Barking, Clapham Junction to Willesden Junction and between Watford and Euston.

The transfer is in line with the Department for Transport's White Paper commitment to examine mechanisms for giving the London Mayor more control over rail services within London.

After the date of transfer, TfL will have complete responsibility for services levels on Silverlink Metro. TfL will now begin the process of procuring a concession to operate services after the transfer.

Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department for Work and Pensions DEL will be increased by £120,787,000 from £8,827,404,000 to £8,948,191,000 and the administration budget will be reduced by £30,335,000 from £6,059,262,000 to £6,028,927,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

Note:

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.

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

RfRl i.

an increase in provision of £4,000,000 (other current) due to increased spending by the Child Support Agency (take up of end of year flexibility);

RfR2

ii. an increase in provision of £37,000,000 (grants) due to increased spending on Employment Programmes (take up of end of year flexibility);

iii. an increase in provision of £74,000,000 (other current/grants) due to increased spending by Jobcentre Plus (£50,688,000), Health and Safety Executive (£8,763,000) and Housing Benefit Administration (£14,549,000) (take up of end of year flexibility);

iv. a reduction in provision of £229,000 (other current) due to a transfer to the Department of Trade and Industry for the transition costs of the Commission for Equality and Human Rights;

v. a reduction in provision of £62,000,000 (other current) due to a switch of funding into capital to reflect revised spending plans;

RfR4

vi. an increase in provision of £3,000,000 (other current) due to increased spending by the Pensions Service (take up of end of year flexibility);

RfR4

vii. an increase in provision of £2,000,000 (other current) due to increased spending by the Disability and Carers Service (take up of end of year flexibility);

RfR5

viii. an increase in provision of £387,000 (administration) due to a transfer of funding from the Cabinet Office for the transfer of the functions of the Parliamentary Counsel Office.

Capital

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

RfR2

ix. an increase in provision of £62,000,000 due to a transfer from other current to better reflect spending plans.

Administration Costs

The movement in the Administration Cost limit arises from:

RfR2

x. a transfer of provision of £30,000,000 within Job Centre Plus from administration to other current to more accurately reflect spending plans;

RfR4

xi. a transfer of provision of £722,000 from Disability Client Group (administration) to Disability Rights Commission (other current);

RfR5

xii. an increase in provision of £387,000 (administration) due to a transfer of funding from the Cabinet Office for the transfer of the functions of the Parliamentary Counsel Office.

Movements from non-voted expenditure

Additionally there are the following drawdowns that are neutral in overall DEL terms:

Welfare Modernisation Fund

xiii. £64,564,000 into RfRl for Child Support Reform;

xiv. £70,000,000 into RfR2 for Jobcentre Plus modernisation;

xv. £26,000,000 into RfR3 for the Pensions Transformation Project;

xvi. £18,000,000 into RfR4 for Disability and Carers Service modernisation;

Employment Development Fund

xvii. £285,000,000 into RfR2 for Jobcentre Plus roll out.

Financial Assistance Scheme

xviii. £17,000,000 into RfR 3 to reflect spending plans.