§ Mr. Rifkind
Subject to parliamentary approval of the spring supplementary estimates, the following changes will be made: 999W
Class I Cash Limits £000 Vote Current cash limit Change Revised cash limit 1 12,405,216 +264,594 12,669,810 2 3,844,613 + 45,969 3,890,582 3 7,153,498 -383,998 6,769,500
These changes decrease the block defence cash limit by £73,435,000. They allow for increased expenditure on class I, votes 1 and 2, which will be offset by lower expenditure on class I, vote 3. The changes additionally take account of a decrease of £75,000,000 to reflect a forecast underspend against provision for recovery from Operation Granby which is subject to specific limits. Also reflected is the net effect of transfers between the Ministry of Defence and other Government Departments. The running costs limit will be increased by £55,069,000 from £5,475,310,000 to £5,530,379,000, £53,232,000 of this increase results from the continued rationalisation of activities to meet the new force structure. This involves the transfer of certain administrative tasks into the running costs total and does not add to the overall level of defence expenditure. The increase also reflects minor changes of £1,837,000 principally due to interdepartmental transfers.