Monday 15 November 2004

Subject to parliamentary approval the Northern Ireland Office (NIO) will be taking a 2004–05 winter supplementary estimate. The effect this will have is to increase the NIO's DEL by £29,789,000 from £1,206,401,000 to £1,236,190,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

RfR1

RfR2

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

• £58,251,000 to section A; £2,536,000 to section F;
• £2,862,000 to section G; £78,903,000 to section I being carry forward of 2003–04 DEL underspending into 2004–05 under the DEL EYF scheme.

Programme costs, £100,726,000:

• £36,760,000 to section A; £9,488,000 to section B;
• £20,099,000 to section D; £8,196,000 to section F;
• £14,535,000 to section G; £9,861,000 to section H;
• £1,500,000 to section I; £287,000 to section M being carry forward of 2003–04 DEL underspending into 2004–05 under the DEL EYF scheme.

Invest to Save fund totalling £2,091,000 comprising:

£285,000 to section A for the Inner London Detox Centre; £350,000 section E for providing seamless access to treatment for drug misusing offenders; £85,000 to section L for the south-west prisons family support service; £891,000 to section M to fund the Peterborough Migration and Asylum Service project and £480,000 to the Youth Justice Board for family group conferencing and youth inclusion and support panels.

Transfers from other government departments totalling £42,230,000 comprising:

£3,120,000 from the Department for Education and Skills comprising £1,002,000 to section E for substance misuse training for personal advisors as contribution to the pooled budget for the Young Peoples Substance Misuse Partnership Grant; £1,500,000 to section K for education funding in the contracted prison estate; £618,000 to section L to fund education and training of offenders and delivery of targets in Wales; £38,940,000 from the Department of Health to section E as a contribution to the pooled budget for the Young People's Substance Misuse Partnership Grant. £140,000 from HM Customs and Excise to section P for special projects and electro-mechanical services. £30,000 from HM Treasury to section F as contribution to group of states against corruption (GR ECO).

Transfer to other government departments totalling £193,297,000 comprising:

£285,000 from section D to the Assets Recovery Agency to implement a communications strategy for maximising transfer of skills. £89,170,000 to the Crown Prosecution Service comprising £1,129,000 from section B for 12 regional ASB prosecutors to tackle anti-social behaviour; £6,591,000 from section D to maintain a receiver's panel to contribute to regional asset recovery tribunals and contribution to costs of Proceeds of Crime Act and £81,450,000 administration costs from the Criminal Justice System reserve. £48,758,000 to the Department for Constitutional Affairs comprising £18,000 from section B for JSB—county court and juveniles; £337,000 from Section D for the centralisation of enforcement in centres of excellence and £23,580,000 admin and £24,823,000 programme costs from the Criminal Justice System reserve. £100,000 from section D to Defra as contribution to the Government Decontamination and Recovery Service Project.

£1,570,000 to the Department for Education and Skills comprising £1,500,000 from section G for funding Positive Activities for Young People and £70,000 admin costs from the DUP.

£13,403,000 to the Department of Health comprising £1,979,000 from section E for arrest referral grant payments to drug action teams to continue the development of heroin pilots; £10,400,000 from section K for prison healthcare payments and £1,024,000 from section I for Women's Services Primrose project; Sex Offenders Treatment Research community project; Cognitive Behavioural Therapy programme at Ashworth Hospital.

£2,000,000 to the Foreign and Commonwealth Office comprising £1,000,000 from section D and £1,000,000 from section E as contributions to the Afghanistan Drugs Plan. £6,537,000 from section D to H M Customs and Excise for Project Cyclamen; regional asset recovery teams; cash forfeiture litigation team and the CIDA project.

£782,000 from section D to the Inland Revenue for the Money Laundering team in London and four regional asset recovery teams.

£1,033,000 to the National Assembly for Wales comprising of £315,000 from section A for Operation Tarian; £654,000 from section B for crime reduction team and business crime reduction advisor in NAW; £64,000 from section G for CCU pathfinder grant programmes.

£19,596,000 to ODPM comprising £244,000 from section A for local delivery managers funding; £9,697,000 from section B for the following activity in government offices: RCU tariffs for crime: reduction teams; business crime reduction advisors; street crime work; Youth Crime Task Force (London) £6,579,000 from section E for: the former Drug Prevention Advisory Service following integration in government offices in the regions; capacity building in Criminal Justice Intervention Programme in the Regions; £2,356,000 from section G for: CCU pathfinder grant programmes; cross-government funding to DTA; capacity building framework and partnership work and £720,000 from the DUP for part of the core funding agreed in SR02 contribution for government office network. £10,033,000 from section A to the Scottish Executive for Airwave police communication systems. £30,000 from section D to the Cabinet Office as contribution towards the funding of serious crime project.

DEL reserve claims totalling £62,500,000 comprising:

£50,000,000 to section A for additional police funding and £12,500,000 to section O from the Efficiency Challenge Fund.

Classification changes totalling £45,000,000:

Re-classification of £45,000,000 Criminal Justice System reserve funding from capital to administration costs.

(b) The change in the capital element of the DEL arises from:

End year flexibility totalling £156,425,000 comprising:

£13,343,000 to section A; £653,000 to section B; £38,099,000 to section D; £608,000 to section F; £90,987,000 to section I; £8,789,000 to section K; £3,946,000 to section M being carry forward of 2003–04 DEL underspending into 2004–05 under the DEL EYF scheme.

Invest to Save funds totalling £360,000 comprising:

£300,000 to section A for the Inner London Detox Centre; £18,000 to section E for seamless access to treatment for drug mis-using offenders; £4,000 to section L for the south-west prisons family support service; £38,000 to the Youth Justice Board for family group conferencing and youth inclusion and support panels.

Transfer to other government departments totalling £11,610,000 comprising: £90,000 from section D to H M Customs and Excise for Project Cyclamen.

£5,000,000 from section I to the Department for Education and Skills for prison education.

£6,520,000 from the Criminal Justice System reserve to the Department for Constitutional Affairs as part of the capital reserve settlement.

DEL reserve claims totalling £100,000,000:

£100,000,000 to section M reflecting the revised settlement for the single asylum fund.

Classification changes totalling £45,000,000:

Re-classification of £45,000,000 Criminal Justice System reserve funding from capital to administration costs.

Private Action: Public Benefit (£450,000) and one-off accommodation costs (£524,000).

The change in the capital element of the DEL arises from a known peak in E-Business expenditure, reflecting controlled underspend in prior years.

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

A transfer from capital DEL to resource DEL of £350,000,000 as agreed in SR 04. Transfers totalling £14,750,000 from the Cabinet Office (£10,057,000), the Scottish Executive (£1,112,000), the Welsh Assembly (£611,000), the Department for Culture, Media and Sport (£770,000) and the Department of Trade and Industry (£2,200,000) as their share of the National Meteorological Programme and Weather Warning Service costs under a pan-government agreement.

A transfer of £13,000 from the Department for Work and Pensions as a contribution to the Veteran Agency's helpline.

An increase in resource appropriations in aid of £16,300,000 from receipt of a special dividend from the Hydrographic Office.

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

• the take up of end year flexibility of £168,000,000 CDEL;
• to reflect the balance sheet capitalisation of £335,000,000 for MOD Main Building, Whitehall, following a PFI refurbishment;
• a transfer from capital DEL to resource DEL of £ 350,000,000 as agreed in SR 04;
• to recognise a capital DEL reduction of £41 million in RfR1, for the advanced purchase of programmed equipment as UORs, under RfR 2 in 2003–04.

The changes to CDEL and RDEL will lead to an increased net cash requirement of £141,763,000.

www.cabinet-office.gov.uk.

We would welcome comments on the consultation paper and the draft Bill by 28 February 2005.

Voted

an increase in total Treasury administrative costs of £5,618,000 resulting from:

• a partial draw down of end year flexibility (EYF) of £98,000 for administration of the Invest to Save Budget (ISB);
• a transfer from the Evidence Based Policy Fund (EBPF) of £35,000 for a research project on regional inequalities in the United Kingdom;
• a transfer of £5,485,000 from the Inland Revenue and H M Customs and Excise to fund the switch of taxation policy responsibility to HM Treasury as recommended by the O'Donnell review;
• an increase in A in A of £200,000 and a matching £200,000 expenditure for secondments.
• a partial draw down of programme EYF of £139,000 for the ISB team;
• a draw down of £300,000 EBPF programme and its subsequent transfer to the Office for National Statistics for a project on the measurement of public sector output as recommended by the Atkinson review. This transfer is DEL neutral for H M Treasury;
• a transfer to Home Office of £30,000 programme spend for the GRECO project, which assesses national anti-corruption arrangements;
• an increase in A in A programme of £5,900,000 and a matching £5,900,000 increase in spend for the Office of Paymaster-General to bring the estimate in line with forecasts;
• a DEL neutral virement of £316,000 between sections in H M Treasury's RfR1;
• an increase in A in A programme of £229,000 and a matching £229,000 increase in spend for the coinage RfR 2, following the sale of scrap metal.

Non-voted

• a partial draw down of programme EYF of £3,810,000 for an increase in Bank of England agency payments, to cover restructuring costs of gilt administration;
• a partial draw down of programme EYF of £232,000 for resettlement payments to Members of the European Parliament;
• an increase in OGC programme spend of £7,800,000, funded by the Efficiency Challenge Fund, as agreed in the 2004 spending review (to be drawn down for use via the estimates as initiatives are identified and agreed with H M Treasury).
• an increase in DEL CFERs of £454,000.

administration costs increases resulting from the take up of £41,914,000 end year flexibility entitlement (EYF) as set out in the Public Expenditure Outturn White Paper (CM 6293). This is partially offset by a transfer of £1,645,000 to H M Treasury to meet the costs of the transfer of policy work and virement from administration costs to programme expenditure of £5,793,000; and

programme expenditure changes relating to: the draw down of £25,000,000 to cover additional costs of lorry road user charging, which formed a part of spending review 2004; an award from the Efficiency Challenge Fund of £300,000; transfers from the Home Office to meet additional costs of anti-terrorism work of £2,336,000, funding from the Recovered Assets Incentivisation Fund of £4,161,000 to meet operational and legal costs and £40,000 towards the CIDA project. Further there is a transfer to the Home Office of £140,000 in support of two specific projects and electromechanical services.

The change in the capital element of the DEL arises from the draw down of capital EYF amounting to £3,680,000 and a transfer from the Home Office of £90,000 to support anti-terrorism work.

Expenditure Limits

Subject to parliamentary approval of the necessary supplementary estimate, the Department of Trade and Industry's DEL will be increased by £527,542,000 from £4,966,261,000 to £5,493,803,000 and the administration costs limit will be increased by £7,958,000 from £428,847,000 to £436,805,000.

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 (all RfR1) arises from:

Also within the change to resource DEL (all RfR1), the changes to administration costs limit are:

Non-voted

There is also utilisation of £185,000,000 from the unused balance of the department's end-year flexibility entitlement in respect of payments in relation to British Energy liabilities, an increase of £77,169,000 to reflect the transfer of non-voted, non-cash RDA budgets from the Office of the Deputy Prime Minister, utilisation of £300,000 from the unused balance of the department's end-year flexibility entitlement for non-voted expenditure of the Equal Opportunities Commission, and utilisation of £2,400,000 resource and £69,642,000 capital grants from the unused balance of the department's end-year flexibility entitlement for non-voted expenditure of the regional development agencies.

Office of the Deputy Prime Minister Main Estimate

There is also a transfer of £22,000,000 to the Department for Work and Pensions in relation to European Regional Development Fund expenditure, in repayment of the department's overspend on this activity in 2003–04 that was funded by the Department for Work and Pensions.

The change in the capital element of the DEL (all RfR1) arises from:

Non-voted

There is also utilisation of £2,640,000 from the unused balance of the department's end-year flexibility entitlement for non-voted expenditure by regional development agencies.