§ Mr. WilkinsonTo ask the Secretary of State for Defence if he will make a statement on changes to the class 1 cash limits and defence operating costs limit for 1996–97. [14205]
§ Mr. PortilloA spring supplementary estimate is to be presented to the House to take up additional provision of £244 million which, subject to parliamentary approval, the Government have agreed will be provided from the reserve in 1996–97 to meet the additional costs of the military operation in the former Yugoslavia, as I announced on 25 November 1996,Official Report, columns 28–29.
The additional funding to be drawn on to class 1, vote 1 will, in accordance with supply procedure, be funded through a further partial appropriation of receipts from the sale of the married quarters estate in England and Wales. Parliamentary supply procedures dictate that any increase in provision on a vote must, in the first instance, be funded by an additional appropriations in aid that are available to the vote.
This appropriation is in addition to the receipts appropriated in aid to fund the entitlement to end year flexibility on class 1, vote 1 in the winter supplementary estimates, which my right hon. Friend the Minister for the Armed Forces announced to the House on 1 November 1996, Official Report, columns 269–70.
The balance of the married quarters sale receipt, some £641 million, will be surrendered to the consolidated fund as extra receipts.
The class 1 cash limits will change as follows:
£000s Class 1 vote Current cash limit Change Revised cash limit 1 10,994,897 -99 10,994,798 2 4,687,170 42,112 4,729,282 3 6,049,870 26,056 6,075,926 The reduction in the cash limit for class 1, vote 1 reflects the net effect of the transfer of responsibilities to another Government Department.
The impact of these changes on the Ministry of Defence operating costs limit is as follows:
Class 1 vote Current cash limit Change Revised cash limit 1 10,989,352 -99 10,989,253 2 4,687,170 42,112 4,729,282 3 806,347 — 806,347