§ Mr. RobathanTo ask the Secretary of State for Defence what changes he plans to announce to the class I cash limits and running costs limit for 1992–93.
§ Mr. RifkindSubject to parliamentary approval of the spring Supplementary Estimates, the following changes will be made:
Class I cash limits Vote Current Cash limit £'000s Change £'000s Revised Cash limit £'000s 1 10,666,157 +156,323 10,822,480 2 9,390,603 -222,000 9,168,603 3 1,898,876 + 74,078 1,972,954 4 1,728,873 -212,505 1,516,368 5 555,005 - 55,000 500,005 These changes decrease the block defence cash limit by £259,104,000 from £24,239,514,000 to £23,980,410,000. They allow for increased expenditure on class I, votes 1 and 3 which will be offset by lower expenditure on class I, votes 2, 4 and 5. The changes additionally take account of decreases of £209,665,000 to compensate for an overspend on class I, votes 2, 4 and 5 in the financial year 1991–92 and of £50,000,000 to reflect a forecast underspend against certain elements of provision which are subject to specific limits. Also reflected is the net effect of transfers between the Ministry of Defence and other Government departments.
The running costs limit will be increased by £163,145,000 from £5,318,374,000 to £5,481,519,000. £162,589,000 of this increase results from the continued rationalisation of activities to meet the new force structure. This involves the transfer of certain administrative tasks into the running costs total and does not add to the overall level of Defence expenditure. The increase also reflects an interdepartmental transfer of £556,000 from Property Holdings.