§ Mr. Bright
To ask the Secretary of State for Defence if he will announce any changes to the defence cash limits and running costs limit for 1990–91.
§ Mr. Archie Hamilton
Subject to parliamentary approval of the necessary supplementary estimates, the following changes will be made:
(1) Defence Cash Limits
£000s Class and Vote Current Cash Limit Increase Revised Cash Limit I, 1 8,968,295 40,000 9,008,295 I, 2 8,531,208 213,389 8,744,597
These changes, which increase the block defence cash limit by £253,389,000 from £21,332,060,000 to £21,585,449,000, reflect the full take-up of entitlement to carry-forward of capital underspending under the end-year flexibility scheme (announced by my right hon. Friend the Chief Secretary to the Treasury on 25 July 1990, Official Report, columns 235–40) and additional costs being incurred on the defence budget as a result of the crisis in the Gulf.
The changes also take account of a decrease of £114,799,000 to compensate for an overspend on class I, votes 1, 2, 4 and 5, in 1989–90. This follows the normal practice of reducing the limit for one financial year by the amount of any overspend in the previous year.
(2) Running Costs Limit.
The running costs limit for the Department will be increased by £40,000,000 from £5,232,678,000 to £5,272,678,000. This reflects additional running costs being incurred on the defence budget as a result of the crisis in the Gulf.
The increases are within the forecast outturn for the planning total included in the Chancellor's autumn statement today.