Cash Limits

HC Deb 31 January 1997 vol 289 cc374-7W

Mr. Gallie

To ask the Secretary of State for Scotland what changes he intends to make to the cash limits and running costs provision for 1996–97 within his responsibility. [14211]

Mr. Michael Forsyth

Subject to parliamentary approval of the necessary supplementary estimates, I intend to make changes to five voted cash limits, two non-voted cash blocks and three running costs limits.

The cash limit for class XIII, vote 2—local government, housing, transport other environmental services and European funds Scotland—will be increased by a net total of £14,857,000 from £5,602,006,000 to £5,616,863,000. The net increase reflects a transfer of £12,802,000 from SO/LA2 to Scottish Homes; a transfer of £4,000,000 from class XIII, vote 5 to revenue support grant; a reduction of £1,298,000 in housing support grant and £647,000 in Scottish new towns; and an increase in Historic Scotland gross running cost provision of £722,000 from £15,216,000 to £15,938,000 which is offset fully by increased appropriations in aid.

The cash limit for class XIII, vote 3, has been reduced by £3,514,000 from £1,613,944,000 to £1,610,430,000. £5,000,000 has been transferred to class XIII, vote 4 to support additional funding for the NHS in Scotland and £2,150,000 has been transferred to class XIII, vote 6, to meet BSE-related administration costs. These transfers have been partly offset by a transfer of £3,636,000 from SO/LA 2-Scottish Office local authorities—to enable Scottish Enterprise to acquire the residual industrial sites held by Livingston development corporation at the winding up of that body.

The cash limit for class XIII, vote 4—hospital, community health, family health, other health services and welfare food, Scotland—will be increased by a net total of £11,627,000 from £3,536,513,000 to £3,548,140,000. The increase includes a transfer of £5,000,000 from class XIII, vote 3, for additional funding for the NHS in Scotland; a transfer of £229,000 from class XVIII, vote 4 due to the reduced costs of the NHS complaints procedures; a transfer of £202,000 from class XIII, vote 6, in respect of funding not required by the Mental Welfare Commission; and a transfer of £17,000 from class VII, vote 1, for drug misuse-related issues. The NHS trusts external financing limit has also been decreased by £10,391,000 from £48,840,000 to £38,449,000.

The cash limit for class XIII, vote 5—law, order and protective services, police grant and social work services, Scotland—will be reduced by £166,000 from £631,928,000 to £631,762,000. The running costs limit will be increased by £1,416,000 from £146,304,000 to £147,720,00. The changes include transfers of £616,000 to the Scottish Prison Service from class XIII, vote 6, for general running costs and £868,000 to civil defence from class I, vote I, in respect of a severe weather warning system. The increases are partly offset by transfers of £4,000,000 to class XIII, vote 2, in respect of revenue support grant and £30,000 to class VIII, vote 7 to cover costs on the Dunblane inquiry.

The cash limit for class XIII, vote 6—Scottish Office administration—is being increased by £1,332,000 from £167,978,000 to £169,310,000. Within this total, the running cost provision for Scottish Office administration is being increased by £684,000 from £152,300,000 to £152,984,000: the changes include a transfer to the Scottish Prison Service—class XIII, vote 5—of £616,000 for general running costs, and a transfer of £1,300,000 from class XIII, vote 3, to cover expenditure associated with the Department's response to BSE. The capital provision is being increased by £648,000 from £16,623,000 to £17,271,000: the changes include a transfer of £850,000 from class XIII, vote 3, again to cover expenditure associated with the Department's response to BSE and a transfer of £202,000 to class XIII, vote 4.

The non-voted cash limit SO/LA1, which covers non-housing capital expenditure by local authorities, is to be increased by £1,079,000 from £441,920,000 to £442,999,000, which is a transfer within class XIII, vote 5, from central Government to local authority expenditure to reflect the amount which local authorities are entitled to claim under the closed circuit television scheme.

The non-voted cash limit SO/LA2 which covers housing capital expenditure by local authorities and capital expenditure by new towns will be decreased by £20,438,000 from £106,395,000 to £85,957,000. The decrease reflects transfers of provision to Scottish Homes of £12,802,000, Scottish Enterprise of £3,636,000 and the Crown Office of £1,000,000 for which corresponding increases are included in the spring supplementary estimates for class XIII, vote 2, class XIII, vote 3, and class VIII, vote 7, respectively; and a transfer of provision to the non-cash limited other environmental services element of class XIII, vote 2, of £3,000,000.

The external finance requirement for Scottish Homes increases by £80 million from £162 million to £242 million as a result of the postponement of the disposal of its portfolio of loans to housing associations.

The overall running cost limit for the Scottish Office, together with its agencies and associated Departments, is being increased by £2,822,000 from £393,399,000 to £396,221,000. This is to cover additional expenditure of £1,300,000 by The Scottish Office associated with the Department's response to BSE and of £800,000 by the Scottish courts administration in connection with the Dunblane inquiry and increased provision of £722,000 for Historic Scotland which will be covered by increased income.

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

Mr. Gallie

To ask the Secretary of State for Scotland what changes the Lord Advocate proposes to the Crown Office cash and running cost limits for 1996–97. [14212]

Mr. Michael Forsyth

Subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class VIII, vote 7, will be increased by £2,300,000 from £45,770,000 to £48,070,000.

Within this total, the running cost limit will be increased by £1,300,000 from £42,718,000 to £44,018,000.

The supplementary is required in order that the Crown Office can take up part—£1,270,000—of its running cost end-year flexibility entitlement of £1,898,00 as announced by the Chief Secretary to the Treasury to the House of Commons on 12 July 1996, Official Report, columns 326–31.

The supplementary estimate also includes two transfers from the Scottish Office: £1,000,000 for capital expenditure and £30,000 to assist with the cost of the Dunblane inquiry.

The increase will be charged to the reserve or met from savings and will not, therefore, add to the planned total of public expenditure.