HC Deb 02 November 1995 vol 265 cc446-7W
Mr. Thurnham

To ask the President of the Board of Trade whether any changes will be made to his Department's cash limits and running cost limit for 1995–96. [41650]

Mr. Lang

Subject to parliamentary approval of the necessary supplementary estimates, the cash limit for class IV, vote 1—programmes and administration—will be increased by £9,512,000 from £1,233,829,000 to £1,233,341,000. This net increase results from:

  1. (i) the take up of running costs and capital end-year flexibility (£9,470,000, including £200,00 machinery of government transfer from class XVIII, vote 1);
  2. (ii) expenditure relating to the privatisation of the National Engineering Laboratory (£1,633,000);
  3. (iii) capital-related expenditure on videoconferencing (£1,000,000); and
  4. (iv) other miscellaneous changes (£169,000);
offset by a reduction in provision to offset a corresponding increase on class IV, vote 4, £2,760,000. This increase will be charged to the reserve and will not therefore add to the planned total of public expenditure.

Within this total, the gross running cost limit for the Department of Trade and Industry is being increased by £49,665,000 from £314,962,000 to £364,627,000. This change comprises:

  1. (i) the take up of £6,157,000 in running costs end-year flexibility as announced by my right hon. Friend the Chief Secretary to the Treasury on 13 July 1995, Official Report, columns 776–82 offset by £1,253,000 for an increase in VAT refunds (£53,000) and the reclassification of expenditure (£1,200,000).
  2. (ii) £1,006,000 in respect of the contractorisation of the National Physical Laboratory.
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  3. (iii) machinery of government transfers from the former Employment Department (class V, vote 1) in respect of running costs (£38,849,000) and the Office of Manpower Economic (£1,573,000); and
  4. (iv) machinery of government transfers from the Cabinet Office: Office of Public Service (class XVIII, vote 1) of £5,580,000 offset by transfers to class XVIII, vote 1 from class IV, Vote 1, of £2,247,000.

As a result of related machinery of government transfers, the DTI also becomes responsible for administering the Advisory, Conciliation and Arbitration Service running cost limit of £22,978,000.

In addition, subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class IV, vote 10 (Office of Gas Supply), will be increased by £1,188,000 from £5,352,000 to £6,540,000 and the gross running cost limit by £1,054,000 from £5,136,000 to £6,190,000. The increase is required for additional staff and running costs—as reflected in the explanatory and financial memorandum of the Gas Bill—for the additional duties placed on the director general by the licensing provisions of the new gas legislation.

Additionally, subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class XVIII, vote 2 (science programme) will be increased by £8,606,000 from £1,284,246,000 to £1,292,852,000. This increase results from the take up of £5,606,000 in capital end-year flexibility as announced by my right hon. Friend the Chief Secretary to the Treasury on 13 July 1995, Official Report, columns 776–82 and of £3,000,000 which is sought to take forward initiatives to strengthen partnerships with industry. This latter increase will be offset by a reduction in the end-year flexibility entitlement on class XVIII, vote 1 (Cabinet Office: Office of Public Service) running costs.