Cash Limits (Hansard, 2 November 1998)

§ Mr. Mandelson

Subject to Parliamentary approval of the necessary supplementary estimates(i) the cash limit for class V vote 1—Department of Trade and Industry: programmes and administration—will be increased by £18,683,000 from £1,268,190,000 to £1,286,873,000. This net increase results from: (a) the take up of running costs and capital end year flexibility (£18,830,000) as announced by my right hon. Friend the Chief Secretary to the Treasury on 14 July 1998, Official Report, columns 131–36; (b) an adjustment of £303,000 in respect of capital charge adjustments incorrectly attributed to DTI, which should have been attributed to OFGAS (Class V Vote 9); offset by: (c) a transfer of £450,000 to the Department of the Environment, Transport and the Regions (Class VI Vote 5) to cover the costs of a new service in respect of the Health and Safety Executive's enforcement of the Working Time regulations and the capital requirements of the Government Offices. Within this total, the gross running costs limit for the Department of Trade and Industry will be increased by £11,069,000 from £349,172,000 to £360,241,000. This change comprises the take up 371W of running costs end year flexibility and the adjustment to the running costs limit consequential on the re-attribution of the capital charges to OFGAS. The take up of the Department's running costs and the capital end year flexibility (£18,830,000) will be charged to the Reserve and will not therefore add to the planned total of public expenditure; (ii) the cash limit for Class V Vote 2—Department of Trade and Industry: science—will be increased by £30,000,000 from £1,338,497,000 to £1,368,497,000. This net increase results from: (a) the partial take-up of capital end year flexibility (£5,000,000) as announced by my right hon. Friend the Chief Secretary to the Treasury on 14 July 1998, Official Report, columns 131–36; (b) additional provision amounting to £25,000,000 covering the Particle Physics and Astronomy Research Council's subscription to CERN for work on the Large Hadron Collider Programme, the increase of student stipends from various Research Councils, contributions to the set-up costs of new programmes at the Medical Research Council, and increased provision for the Swindon Research Councils Pension Scheme. Both these increases will be charged to the Reserve and will not therefore add to the planned total of public expenditure; (iii) the cash limit for Class V Vote 7—Office of Fair Trading— will be increased by £2,361,000 from £21,731,000 to £24,092,000 and the running costs limit will be increased by £1,640,000 from £19,301,000 to £20,941,000. These changes reflect the extra resources required to meet commitments carried forward from 1997–98, to carry forward projects which were planned in previous years but not completed, and to undertake work on the new competition legislation. The increase will be charged to the Reserve and will not therefore add to the planned total of public expenditure; (iv) the cash limit for Class V Vote 8—Office of Telecommunications—will be increased by a nominal £1,000 from £1,000 to £2,000 and the running costs limit will be increased by £481,000 from £10,468,000 to £10,949,000. These changes, which include additional capital provision of £921,000, reflect the extra resources required to cover the cost of implementing the review of OFTEL's organisational structure and give effect to the end year flexibility carry forward of £139,000 on running costs announced by my right hon. Friend the Chief Secretary to the Treasury on 4 July 1998, Official Report, columns 131–36. Although there will be an offsetting increase of £1,401,000 in additional appropriations in aid, the token net increase of £1,000 will be charged to the Reserve and will not therefore add to the planned total of public expenditure; (v) the cash limit for Class V Vote 10—the Office of Electricity Regulation—will be increased by £939,000 from £1,000 to £940,000 and the running costs limit will be increased by £1,800,000 from £20,000,000 to £21,800,000. These increases reflect the additional resources required by the Director General of Electricity Supply for the engagement of consultants to assist in preparing for the review of electricity trading arrangements and for additional staff to strengthen regulatory capabilities as well as additional capital expenditure amounting to £244,000 for computer equipment for new staff and for projects connected with the review of electricity trading arrangements. Part of this increase will be offset by an additional £1,105,000 in appropriations in aid as a result of increased electricity licence fees. The balance of £939,000 will be charged to the Reserve and will not therefore add to the planned total of public expenditure.