Departmental Expenditure Limits

HC Deb 26 February 2002 vol 380 cc1135-6W

Mr. Michael Foster

To ask the Secretary of State for Defence what plans he has to change the departmental expenditure limits for 2001–02. [38464]

Mr. Ingram

Subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence Departmental Expenditure Limit will be increased by £813,795,000 from £23,876,578,000 to £24,690,373,000. Within the Departmental Expenditure Limits (DEL) change, the impact on resources and capital are as set out in the following table:

£000
Resources
Change	663,096
New DEL	19,034,434
of which:
Voted	18,733,640
Non-voted	300,794
Capital
Change	150,699
New DEL	5,655,939
of which:
Voted	5,596,969
Non-voted	58,970

The change in the resource element of the DEL arises from: An increase of £356,761,000 for conflict prevention activities in Bosnia, Kosovo, the Gulf, Sierra Leone and Afghanistan. Transfers of £261,594,000 from capital to resource DEL. A transfer from the Department for Transport, Local Government and the Regions of £3,435,000 for royal travel. A transfer from the Foreign and Commonwealth Office of £1,154,000 for the British Defence Staff in Washington. A transfer to the Foreign and Commonwealth Office of £125,000 for an increase in the MOD's contribution to the running costs on Ascension Island. A transfer from the Foreign and Commonwealth Office of £12,045,000 for conflict prevention activities. A transfer from the Department for International Development of £3,500,000 for conflict prevention activities. An increase in cash release from provisions of £25,400,000.

The change in the capital element of the DEL arises from: An increase of £47,766,000 for urgent operational requirements for conflict prevention activities. An increase of £305,927,000, which is in partial anticipation of a successful PPP for the Defence Evaluation and Research Agency. A bringing forward from FY 2003–04 of £97,400,000 for the Defence Logistic Organisation Business Change Programme. A reduction of £38,800,000 in trading fund capital expenditure as a result of the vesting of QinetiQ as a self-financing public corporation on 1 July 2001. Transfers to resource DEL of £261,594,000.

The increase will be offset by inter-department transfers and charges to the DEL reserve and will not therefore add to the planned total of public expenditure.

The total amount included in spring supplementary estimates for the UK military commitment in Afghanistan is £261,000,000 (Resource DEL £195,000,000, Capital DEL £57,000,000 and Annually Managed Expenditure £9,000,000). This figure includes the cost of munitions consumed and represents the total estimated additional cost of operations in 2001–02 over and above the cost of planned activities.