§ Mr. Robert B. Jones
To ask the Secretary of State for Defence if he will announce any changes to the defence cash limit for 1989–90.
§ Mr. Tom King
My right hon. Friend the Chief Secretary to the Treasury announced on 29 July 1989 an entitlement of £435,690,000 to increase the cash limit for 1989–90, resulting from carry forward of capital expenditure under the end-year flexibility scheme. I can now announce that we shall receive a further entitlement of £248,770,000. Of this new increase, £239,588,000 comes under the terms of the additional flexibility arrangements announced to the House on 19 December 1986,Official Report column 778. These arrangements provide for carry 134W forward of underspend resulting from procurement decisions taken to improve contractors' performance and the value for money obtained from our defence procurement contracts during the 1988–89 financial year, including the Department's tauter approach to interim payments. The remaining £9,182,000 is to compensate the defence budget for the costs arising from the change in status of the Property Services Agency.