Cash Limits (Hansard, 25 May 1989)

§ Mr. Mellor

Subject to parliamentary approval of the necessary Supplementary and Revised Estimates, the following changes will be made:

The cash limit for class XIV, vote 1 (hospital and community health and other services, England) will be 727W increased by £113,005,000 from £11,748,942,000 to £11,861,947,000 to help provide, from 1 April 1989, for the pay awards recommended in the 1989 reports of the review bodies for nursing staff, midwives, healthpisitors and professions allied to medicine and on doctors' and dentists' remuneration, as announced by my right hon. Friend the Prime Minister on 16 February 1989.

The cash limit for class XIV, vote 3 (Department of Health administration, miscellaneous health services and personal social services, England) will be reduced by £2,525,000 from £670,695,000 to £668,170,000. A reduction of £3,470,000 is being made to allow for transfers to class XV, vote 7 (Department of Social Security, administration and miscellaneous services) in respect of the independent living fund (£2,700,000), motability (a net £550,000) and to correct the apportionment of resources for departmental administration following the split of the former Department of Health and Social Security (£220,000). A further reduction of £50,000 is being made to offset increased provision on class XIV, vote 2 (Family practitioner and other services, England) in respect of residual transaction expenses arising in connection with the reconstitution of the General Practice Finance Corporation. These reductions are partly offset by an additional £995,000 to meet in full, from 1 April 1989, the review body recommendations mentioned above. The provision for running costs on this vote and the Department's running costs limit is increased by £559,000 from £238,256,000 to £238,815,000.

The increases will be charged to the Reserve and will not therefore add to the planned total of public expenditure.