Cash Limits (Hansard, 31 January 1997)

§ Sir George Young

Subject to parliamentary approval of the necessary supplementary estimates, the following changes will be made:

The cash limit for class V, vote 1—Highways Agency—will be increased by £1,214,000 from £1,662,285,000 to £1,663,499,000. The increase in the cash limit reflects adjustments in running costs funding between this vote and class V, vote 2, to allow the consolidation of administrative budgets and funds for the Highways Agency's early retirement programme and also the balance of end year flexibility entitlement as announced by the Chief Secretary to the Treasury on 12 July 1996, Official Report, columns 326–31. Running costs provision for this vote increases by £1,214,000 from £75,984,000 to £77,198,000.

The cash limit for class V, vote 2—administration and transport services—will be reduced by £232,000 from £154,877,000 to £154,645,000. The reduction in the cash limit arises from a claim on the reserve for track access grants of £6,000,000 and inter-vote transfer from class V, vote 5 of £500,000 for expenditure associated with the channel tunnel rail link consultancy, offset by inter-vote transfers between this vote and class V, vote 1, for expenditure consolidating administrative budgets and the Highway's Agency's early retirement programme of £1,214,000 class V, vote 3, for expenditure relating to the Croydon tramlink of £4,527,000, and class V, vote 6 for expenditure relating to the clean-up operation for the Sea Empress of £327,000, and to the Marine Agencies' early retirement programmes of £664,000. Running costs provision for this vote is reduced by £2,205,000 from £107,987,00 to £105,782,000.

The cash limit on class V, vote 3—transport industries—will be increased by £5,100,00 from £10,167,000 to £15,267,000. The increase is met by a claim on the reserve for increased expenditure and receipts associated with rail consultancies and rail privatisation offset by an inter-vote transfer to class V, vote 2 of £500,000 for expenditure associated with the channel tunnel rail link consultancy.

The cash limit on class V vote 4—Driver and Vehicle Licensing Agency—will be increased by £2,125,000 from £178,326,000 to £180,451,000. The increase is met by claims on the reserve for increased expenditure on the development of photographs on driving licences at £2,274,000, and on higher volumes of vehicle licensing business generated under the terms of the Driver and Vehicle Licensing Agency's demand financing regime of £1,024,000, offset by an inter-vote transfer of deferred expenditure for the statutory off-road notification project of £1,173,000 to class V, vote 6 for the clean-up operation for the Sea Empress. Running costs provision for this vote is increased by £3,441,000 from £173,132,000 to £176,572,000.

The cash limit on class V, vote 5—roads and local transport—will be reduced by £20,473,000 from £392,038,000 to £371,565,000. The reduction comes about because of the transfer of responsibility for the Croydon tramlink project from this vote to class V, vote 3, section H, London Transport's core business.

The cash limit on class V, vote 6—other transport agencies—will be increased by £8,164,000 from £86,065,000 to £94,229,000. The increase is met by a claim on the reserve of £6,000,000 and inter-vote transfers from class V, vote 2 of £327,000 and from class V, vote 4 of £1,173,000 for the costs associated with the clean-up operations for the Sea Empress, and a transfer for the 393W Marine Agencies early retirement programmes of £664,000, also from class V. vote 2. Running costs provision for this vote increases by £664,000 from £38,841,000 to £39,505,000.

As a result of these changes, the Department of Transport gross running costs limit will be increased by £3,114,000 from £395,944,000 to £399,058,000.

The Department of Transport local authority capital cash limit will be increased by £447,000 from £312,644,000 to £313,091,000. This increase results from a transfer of funds from class VI, vote 2 of the Department of the Environment for the development of the Conway Park railway station.

In addition, the cash limit on class V, vote 7—passenger rail services—will be increased by £65,329,000, from £1,787,668,000 to £1,852,997,000. The additional provision is required to provide support for the provision of passenger rail services in 1996–97, and adviser costs in connection with the letting of franchises. The Office of Passenger Rail Franchising running costs limit will also be increased by £444,000 from £7,556,000 to £8,000,000 to take account of receipts in respect of seconded staff.

The overall increases will be offset by transfers or charged to the reserve and will not, therefore, add to the planned total of public expenditure.