HC Deb 02 February 1989 vol 146 cc407-8W
Sir Geoffrey Johnson Smith

To ask the Secretary of State for Defence if he proposes to make any changes to the defence cash limits and running costs limit for 1988–89.

Mr. Younger

Yes. Subject to parliamentary approval of the necessary spring Supplementary Estimates the following changes are being made:

Defence Cash Limits
Class and Vote Current Cash Limit Increase/Decrease £'000s Revised Cash Limit
I, 1 7,775,660 +72,434 72,447 transferred from I, 3, I, 4 and I, 5, less 13 transferred to XX, 1 7,848,094
I, 3 1,101,516 -12,447 Transferred to I, 1 1,089,069
I, 4 1,581,212 -30,000 Transferred to I, 1 1,551,212
I, 5 471,789 -30,000 Transferred to I, 1 441,789

These changes allow for transfers within the Ministry of Defence's block cash limit to reflect the pattern of expenditure now expected, and a decrease of £13,000 to offset a corresponding increase in the limit of the Office of the Minister for the Civil Service (class XX, vote 1) for the transfer of costs for recruitment under the direct entry grade 7 competition 1988. These changes will not, therefore, add to the planned total of public expenditure. Running Costs Limit

This limit is being increased by a net £3,221,000 to £5,411,054,000. It reflects an increase of £8,033,000 in respect of the running costs element of the restructuring costs of the PSA as it moves towards untying in 1990; and a decrease of £4,799,000 to compensate for an overspend in 1987–88. This follows the normal practice of reducing the limit for one financial year by the amount of the previous year's overspend. In addition, a decrease of £13,000 is required to offset the transfer to class XX, vote I mentioned above.