Departmental Expenditure Limits (Hansard, 16 February 2000)

§ Mr. Milburn

Subject to Parliamentary approval of the necessary Supplementary Estimates for Class II, Votes 1 and 2 the Department of Health Departmental Expenditure Limit for 1999–2000 will be increased by £302,308,000 from £40,455,019,000 to £40,757,327,000. The increase is the net effect of changes to Class II, Vote 1 (Hospital, community health, family health and related services, England) of £261,646,000 made up of £113,671,000 in respect of the take up of end year flexibility for NHS 605W trusts, £134,000,000 from the reserve for the cost of generic drugs and clinical negligence claims and £14,000,000 from the capital modernisation fund. In addition the following transfers will take place; £1,094,000 from Northern Ireland for out of area treatments; £177,000 from the National Assembly for Wales general practitioner drug costs and £155,000 from Class III, Vote 1 (Environment, Transport and the Regions: Housing, construction, regeneration, countryside and wildlife, England) for the Victoria Pilot Project. The overall increase is partially offset by transfers of £1,250,000 to Class XII, Vote 3 (Department of Social Security: administration) for the road traffic accident element of the Compensation Recovery Unit; £190,000 to Class XIII, Vote 1 (Scottish Executive) for student bursaries and £11,000 to Class XIV, Vote 1 (National Assembly for Wales) for the Dental Service Increment for Teaching.

The increase of £40,662,000 for Class II, Vote 2 (Department of Health, administration, miscellaneous health and personal social services, England) is the net effect of transfers (detailed below) and £16,460,000 take-up of end year flexibility (as announced by the Chief Secretary to the Treasury on 27 July 1999, Official Report, column 393 and £25,000,000 for claims in respect of asylum seekers grant; £580,000 (£60,000 running costs) from Class IV, Vote 1 (Home Office: administration, police, immigration and other services, England and Wales) for teenage pregnancy unit, publicity and drug project development work; £60,000 (running costs) from Class I, Vote 1 (Department for Education and Employment: programmes and central services), £60,000 (running costs) from Class III, Vote 5 (Department of the Environment, Transport and the Regions: administration) and £60,000 (running costs) from Class XII, Vote 3 (Department of Social Security: administration) for the teenage pregnancy unit; £67,000 (running costs) from Class XIII, Vote 1 (Scotland and transfers to the Scottish Consolidated Fund) for the National Screening Committee; £4,000 (running costs) from Department of Health and Social Services, Northern Ireland for the National Screening Committee and Human Genetics 606W Commission. The overall increase is partially offset by transfers of £1,629,000 (£138,000 running costs) to Class X, Vote 2 (Ministry of Agriculture, Fisheries and Food) for BSE Inquiry costs.

The Department's gross running cost limit will be decreased by £117,000 from £280,450,000 to £280,333,000 made up of an increase of £173,000 (detailed above) offset by and a transfer within DH DEL to programme expenditure of £290,000 for surveys and research.

The external finance limit for NHS trusts has decreased by £122,596,000 (£50,000,000 non-Voted) from £166,596,000 to £44,000,000.

All increases will either be offset by transfers to or from other Departmental Expenditure Limits (detailed above) or charges to the DEL Reserve and will not therefore add to the planned total of public expenditure.