HC Deb 01 November 1996 vol 284 cc305-6W
Mr. Carrington

To ask the Secretary of State for Transport what proposals he has to change his Department's cash limits and running cost limits for 1996–97. [2434]

Sir George Young

Subject to parliamentary approval of the necessary supplementary estimates, the following changes will be made:

  1. (i) the cash for class V vote 1—Highways Agency—will be increased by £21,113,000 from £1,641,172,000 to £1,662,285,000. The increase in the cash limit includes the take up £21,064,000 capital end year flexibility entitlement and £4,000,000 running costs end year flexibility entitlement as announced by the Chief Secretary to the Treasury on 12 July 1996, Official Report columns 326–31, offset by adjustments in running costs funding between this vote and class V vote 2, relating to the consolidation of the Highways Agency's role. Running costs provision for this vote increases by $4,468,000 from £71,516,000 to £75,984,000.
  2. (ii) the cash limit for class V vote 2—Administration and Transport Services—will be increased by £25,869,000 from £129,008,000 to £154,877,000. The increase in the cash limit includes the take up £2,000,000 capital end year flexibility entitlement from vote 2; £2,000,000 capital end year flexibility entitlement from class V vote 4 and £4,997,000 capital end year flexibility entitlement from class V vote 5; and £15,834,000 running costs entitlement as announced by the Chief Secretary to the Treasury on 12 July 1996, Official Report columns 326–31; the transfers of funds to class V vote 1 for restructuring and streamlining in the Highways Agency and relocation of some of the agency's research and development work to the central transport group; transfers of funds between this vote and class V vote 5 for new London road studies and an emerging shortfall in receipts; transfer of funds to class V vote 6 for network services; the transfer of some census and survey work to the Office of National Statistics; and transfers relating to accommodation changes and security responsibilities from the Office of Public Service and the Security Facilities Executive agency. Running costs provision for this vote increases by £15,302,000 from £92,685,000 to £107,987,000.
  3. (iii) the cash limit on class V vote 5 will be increased by £2,458,000 from £389,580,000 to £392,038,000. The increase in the cash limit includes the take up of £2,470,000 capital end-year flexibility—EYF—entitlement, as announced by the Chief Secretary to the Treasury on 12 July 1996, Official Report columns 326–31, offset by intervote transfers between this vote and class V vote 2 and class XVI vote 12 of the Office of National Statistics and internal transfers to allow payment of £1,458,000 for audit adjustments to metropolitan railway grant 1995–96 outturn.
  4. (iv) the cash limit on class V vote 6 will be increased by £4,701,000 from £81,364,000 to £86,065,000. The increase is accounted for by a transfer of provision from the Ministry of Defence for payments to the Meteorological Office trading fund and a transfer for network services from class V vote 2. Running costs provision for this vote increases by £75,000 from £38,766,000 to £38,841,000.
  5. (v) the Department of Transport local authority capital cash limit will be increased by £4,530,000 from £308,114,000 to £312,644,000. This partially take up the capital end-year flexibility entitlement as announced by the Chief Secretary to the Treasury on 12 July 1996, Official Report, columns 326–31.
  6. (vi) the Department of Transport gross running costs limit will be increased by £19,845,000 from £376,078,000 to £395,923,000 as a consequence of the above changes, mainly for voluntary early retirements.
  7. (vii) in addition the cash limit on class V vote 7—passenger rail services—will be increased by £137,000,000 from £1,650,668,000 to £1,787,688,000. The additional provision is required under British Rail's budget for the provision of passenger rail services in 1996–97.

The overall increases will be offset by transfers or charged to the reserve and will not therefore add to the planned total of public expenditure.