HC Deb 02 February 1990 vol 166 cc406-7W
Mr. Bendall

To ask the Secretary of State for Defence if he can announce any changes to the defence cash limits and running costs limit for 1989–90.

Mr. Archie Hamilton

Subject to parliamentary approval to the necessary spring Supplementary Estimates the following changes will be made:

(1) Defence Cash Limits

£'000s
Class and Vote Current Cash Limit Increase/Decrease Revised Cash Limit
I, 1 8,349,433 +130,282 8,479,715
I, 2 8,339,159 +260,841 8,600,000
I, 3 1,202,721 +9,606 1,212,327
I, 4 1,816,030 +52,518 1,868,548
I, 5 441,372 +43,858 485,230

These changes, totalling £497,105,000, reflect the take-up of part of the entitlement to carry-forward of capital underspending under the end-year flexibility scheme (announced by my right hon. Friend the Chief Secretary to the Treasury on 20 July 1989, Official Report, columns 258–62) and the additional arrangements for defence procurement (announced on 16 January 1990 by my right hon. Friend the Member for Bridgwater (Mr. King), Official Report, columns 135 and 136). These increases will be charged to the reserve.

The changes also take account of a transfer of £800,000 from the Department of Transport (class VIII, vote 2) to class I, vote 1, reflecting the transfer of responsibility for the costs of royal flights in civil aircraft (announced by my right hon. Friend the Member for Southend, West (Mr. Channon) Official Report, 18 May 1989, column 280), and a further transfer of £34,000 from the Cabinet Office: Office of the Minister for the Civil Service (class XX, vote 1) in respect of the challenge funding scheme for senior management development training. These changes will not add to the planned total of public expenditure.

(2) Running Costs Limit

The running costs limit for the Department will be increased by £2,034,000 from £5,149,347,000 to £5,151,381,000 reflecting both the transfer of £34,000 in respect of challenge funding and an increase of £2,000,000 for the running costs element of the additional expenditure incurred by the Ministry of Defence in providing assistance in the ambulance dispute.