HC Deb 23 February 1998 vol 307 cc14-6W
Mr. Etherington

To ask the Secretary of State for the Environment, Transport and the Regions what proposals he has to change his Department's cash limits and running cost limits for 1997–98. [30281]

Mr. Prescott

Subject to Parliamentary approval of the necessary Supplementary Estimates, my Department's cash limits will change as follows:

  1. (i) the cash limit for class V, vote 1—Highways Agency—will be reduced by £5,645,000 from £1,572,558,000 to £1,566,913,000. This reflects a transfer to the DOT/LACAP (Local Authority Capital) non-voted cash limit to provide assistance to the South Yorkshire Passenger Transport Authority in respect of certain liabilities associated with the South Yorkshire Supertram.
  2. (ii) the cash limit for class V, vote 2—Department of Transport: administration and transport services—will be increased by £1,000 from £161,700,000 to £161,701,000. The increase reflects an inter-vote transfer from class V, vote 4 of £336,000 running cost and £154,000 programme provision for Central Transport Group and Government Office administration expenditure and an inter-vote transfer from this vote to class II, vote 2 of £51,000 in respect of costs associated with the United Nations Convention on the law of the sea. In addition provision has been made for a receipt of £650,000 from the European Community in respect of the cost of the return visit to the wreck of the tanker Derbyshire and associated payments of £651,000. Provision of £1,000 has also been made for Government Office administration receipts and there is a net increase in other voted receipts of £438,000, reflecting expected outturn. Running cost provision for this vote will be increased by £336,000 from £86,521,000 to £86,857,000.
  3. (iii) the cash limit on class V, vote 4—Driver and Vehicle Licensing Agency—will be increased by £416,000 from £154,825,000. The increase involves a £2,900,000 claim on the Reserve for higher business volumes under the terms of DVLA's demand financing regime. The cash limit is also increased by £16,000 as a result of transfers of £8,000 from the Scottish Office (class XIII, Vote 5) and £8,000 from the Home Office (class VII, vote 1). These increases are offset by transfers of: £490,000 to class V, vote 2 (£336,000 of which is running costs); £504,000 to class V, vote 6; £160,000 to class VI, vote 5; and £1,346,000 to the DOT/LACAP (Local Authority Capital) non-voted cash limit to provide assistance to the South Yorkshire Passenger Transport Authority. Running cost provision for this vote will be increased by £2,766,000 from £178,546,000 to £181,312,000.
  4. (iv) the cash limit for class V, vote 5—Roads and Local Transport—will be increased by £850,000 from £315,538,000 to £316,388,000. The increase reflects the take-up of £650,000 capital end year flexibility as announced by the Chief Secretary to the Treasury on 17 July 1997, Official Report, columns 245–50, and an inter-vote transfer from class VI, vote 2 of £200,000 for the Rural Transport Development Fund.
  5. (v) the DOT/LACAP (Local Authority Capital) non-voted cash limit will be increased by £22,603,000 from £356,343,000 to £378,946,000. The increase reflects transfers of £5,646,000 from the class V, vote 1 cash limit; £1,346,000 from the class V, vote 4 cash limit; £8,008,000 from the class VI, vote 1 cash limit; £5,000,000 from the DETR/NT non-voted cash limit; and £2,603.000 from the DETR/ERDF non-voted cash limit. £20,000,000 will be used to provide assistance to the South Yorkshire Passenger Transport Authority in respect of certain liabilities associated with South Yorkshire Supertram, and £2,603,000 for the development of Conway Park railway station.
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  6. the cash limit for class V, vote 6—other transport agencies—will be increased by £505,000 from £97,408,000 to £97,913,000. The increase reflects the inter-vote transfer from: class V, vote 4 of £504,000 towards the costs of voluntary early retirement; and class IV, vote 1 of £125,000 of running cost provision for the Marine Safety Agency to undertake work on ship radio matters. The increase in running cost provision will be offset by appropriations in aid of £124,000. The running cost provision for this vote will be increased by £629,000 from £38,800,000 to £39,429,000.
  7. (vii) the cash limit for class V, vote 7—Passenger rail services—will be reduced by £21,092,000 from £1,465,385,000 to £1,444,293,000. The reduction reflects a £16,000,000 inter-vote transfer from this vote to class V, vote 3, section J for Metropolitan Railway Passenger Services Grant, a £4,652,000 reduction in respect of reduced expenditure on consultants, and a reduction in running costs of £440,000 which has been transferred to class VI, vote 5. The OPRAF gross running cost limit will accordingly be reduced by £440,000 from £7,367,000 to £6,927,000.

As a result of the changes in class V, votes 2, 4 and 6 the former Department of Transport's gross running cost limit will be increased by £3,731,000 from £373,359,000 to £377,090,000.

  1. (viii) the cash limit for class VI, vote 1—Housing and construction, England—covering Sections A, D to G, I, J and L of that vote, will be reduced by £54,197,000 from £596,383,000 to £542,186,000. The principal change is a transfer of £42,153,000 to the DETR/HC (Housing Corporation) non-voted cash limit so that some Estates Renewal Challenge Fund grants can be paid by the Housing Corporation. In addition £8,008,000 will be transferred from various social housing programmes to the DOT/LACAP (Local Authority Capital) non-voted cash limit in respect of South Yorkshire Supertram costs; £1,686,000 to the DETR/LGR (Local Government Reorganisation) non-voted cash limit; and £2,350,000 of Rent Assessment Panel running cost provision to the cash limit for class VI, vote 5—Department of the Environment: administration.
  2. (ix) the DETR/HC (Housing Corporation) non-voted cash limit will be increased by £43,422,000 from £676,485,000 to £719,907,000, reflecting the transfer of £42,153,000 from the class VI, vote 1 cash limit described above and £1,269,000 take-up of end-year flexibility as announced by the Chief Secretary to the Treasury on 17 July 1997, Official Report, columns 245–50.
  3. (x) The cash limit for class VI, vote 2—Regeneration and countryside and wildlife, England—will be reduced by £211,000 from £1,516,284,000 to £1,516,073,000 to reflect a transfer of £200,000 to the Rural Development Commission's spending on local transport (class V, vote 5) and a transfer of £11,000 to Environmental Research (class VI, vote 3).
  4. (xi) The DOE/ERDF (European Regional Development Fund) non-voted cash limit will be reduced by £2,603,000 from £138,322,000 to £135,719,000. This reflects a transfer to the DOT/LACAP (Local Authority Capital) non-voted cash limit.
  5. (xii) the cash limit for class VI, vote 3—Environmental protection and water—will be increased by £397,000 from £341,630,000 to £342,027,000. This increase reflects a transfer of £477,000 from the DETR/OES cash limit for remedial work on contaminated land and £60,000 from class III, vote 2 for preparatory costs associated with the EU nitrates directive, both to be carried out by the Environment Agency; an increase of £11,000 in provision for environmental protection research and monitoring, offset by a corresponding reduction in the cash limit for class VI, vote 2; a transfer of £100,000 to class II, vote 5 for the UK's annual contribution to the UN Habitat Fund; and a transfer of £51,000 to class II, vote 2 towards the UK's contribution to the UN Convention on the Law of the Sea.
  6. (xiii) the DETR/OES (Other Environmental Services) non-voted cash limit will be reduced by £250,000 from £21,042,000 to £20,792,000. The decrease reflects the transfer of £477,000 to the cash limit for class VI, vote 3 and the take up of £227,000 of capital end year flexibility as announced by the Chief Secretary to the Treasury on 17 July 1997, Official Report, columns, 245–50.
  7. (xiv) the cash limit for class VI, vote 4—Local government and planning, England—will be reduced by £2,000 from £30,987,636,000 to £30,987,634,000. This reduction reflects savings on planning and minerals research in Section D (Planning and 16 minerals research) which will be used within vote 4, to cover an ex gratia payment from Section I (Other grants and payments) in connection with a decision to commute certain grant payments in 1984. Section I is outside the cash limit on the vote.
  8. (xv) the DETR/LGR (Local government reorganisation) non-voted cash limit will be increased by £1,686,000 from £155,314,000 to £157,000,000 due to greater than forecast demand for Commutation Supplementary Credit Approvals (SCAs). This increase will be offset by a reduction of the same amount in the cash limit for class VI, vote 1.
  9. (xvi) the cash limit for class VI, vote 5—Department of the Environment: administration—will be increased by £22,856,000 from £394,601,000 to £417,457,000. The increase reflects the take up £5,200,000 by the Health and Safety Executive and £12,050,000 by the Department of the Environment, Transport and the Regions of running cost end year flexibility and £2,656,000 of capital end year flexibility, as announced by the Chief Secretary to the Treasury on 17 July 1997, Official Report, columns 245–50. In addition, inter-vote running cost transfers from class V, vote 7 of £440,000 and class VI, vote 1 of £2,350,000 have been made to central administration running costs, together with a transfer to the Health and Safety Executive from class V, vote 4 of £160,000 in respect of the Channel Tunnel Safety Unit.
  10. (xvii) the cash limit for class VI, vote 7—Office of Water Services—will be increased by £500,000, from £10,300,000 to £10,800,000. An increase of £400,000 is required for work relating to the preparation for the Periodic Review in 1999 and £100,000 is required to upgrade computers to be year 2000 compliant. The increase will be met by a call on the reserve of £500,000.
  11. (xviii) the DETR/NT (New Towns) non-voted cash limit will be reduced by £5,000,000 from -£105,000,000 to 4110,000,000 to reflect a transfer to the DOT/LACAP (Local Authority Capital) non-voted cash limit.

As a result of the changes shown on class VI, vote 5 the gross running cost limit for the Health and Safety Executive will be increased by £5,360,000 from £154,572,000 to £159,932,000 and the gross running cost limit for the former Department of the Environment will be increased by £12,490,000 from £210,396,000 to £222,886,000. As a result of changes shown on class VI, vote 7 the gross running cost limit for the Office of Water Services will be increased by £400,000 from £10,000,000 to £10,400,000.

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.

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