PSA Services (Hansard, 6 November 1991)

§ Mr. Heseltine

Yes. Subject to parliamentary approval, and as part of wider changes to my Department's cash limits for 1991–92, the cost limit for class VIII, vote 13 will be reduced by £13,691,000 from £83,307,000 to £69,346,000 mainly due to lower than previously forecast expenditure on severance. In addition, the following changes will be made to my Department's cash limitsi) the DOE/UA non-voted cash limit will be increased by £28,781,000 from £855,033,000 to £883,814,000. This includes increased grant-in-aid of £23,000,000 to the London Docklands Development Corporation for the Eastern extension of the docklands light railway. A further £11,581,000 is required for various projects by other urban development corporations and to meet a backlog of urban programme grant claims. The costs will be met, in part, from full take up of entitlement of £8,781,000 under the end year 160W flexibility scheme for capital projects. There are also some offsetting savings amounting to £5,800,000 on the city grant programme; ii) the cash limit for class VIII, vote 5 (Central environmental services, etc.) will be reduced by £9,450,000 from £327,290,000 to £317,840,000. Of this decrease £7,000,000 reflects reduced grant-in-aid requirement by the National Rivers Authority, and £2,450,000 reflects adjustments to the grant-in-aid payable in 1991–92 to the Nature Conservancy Council and English Nature. The latter offsets in part an increase in the cash limit on class VIII, Vote 6 (Royal palaces, royal parks, historic buildings, etc.) as described below; iii) the cash limit for class VIII, vote 6 (Royal palaces, royal parks, historic buildings? etc.) will be increased by £3,450,000 from £173,034,000 to £176,484,000. An increase of £2,450,000 is required to meet payments arising from contracting out the gardening services in the royal parks, in accordance with the plans I announced to the House on 18 July. This increase is offset by a reduction in the cash limit on class VIII, vote 5 as outlined above. The additional associated running cost provision of £2,450,000 will be offset by an equivalent reduction in running cost provision on class VIII, vote 8 (Department of the Environment: Administration) so that the Department's running cost limit of £190,061,000 remains unchanged. There will be a further increase of £1,000,000 for improving public facilities in the royal parks that will be met from part take up of entitlement of £1,048,000 under the end year flexibility scheme for capital projects; iv) the cash limit for class VIII, Vote 9 (Revenue support grant, payment of non-domestic rates, Valuation Office rating service, etc., England) will be increased by £78,232,000 from £22,681,112,000 to £22,759,344,000. The increase is required for the implementation of Council Tax; and v) the DOE/LACAP non-voted cash limit will be reduced by £3,867,000. The reduction is due to lower than expected claims by local authorities of specific current grants.

The Chief Secretary to the Treasury, announced in a written answer on 17 July 1991 at columns 186–190 the entitlements for 1991–92 cash limits allowed under the end-year flexibility schemes.

These changes are reflected in the forecast outturn for the planning total included in the Chancellor's autumn statement today.