§ Mr. Alan KeenTo ask the Secretary of State for Defence if he will make a statement of changes to the class 1 cash limits and the Defence operating costs limit for 1997–98.[14187]
§ Dr. ReidFollowing the recent announcement by the Government that the Defence budget for 1997–98 is to be reduced by £168 million on account of overspending its 1996–97 cash limit, the class 1 cash limits will change as follows:
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£000s Class 1 vote Current cash limit Change Revised cash limit 1 10,145,386 -49,256 10,096,130 2 4,806,637 -52,300 4,754,337 3 6,175,530 -63,000 6,112,530 Defence 21,127,553 -164,556 20,962,997 The reduction of £168 million has been offset by £3.444 million to reflect the transfer of PES provision from the Foreign and Commonwealth Office to the Ministry of Defence to meet the costs of the Department's annual subscription to the BBC World Service Monitoring Service on the organisation's move to subscription based funding in 1997–98. The costs fall to vote 1.
The impact of the reduction in the class 1 cash limits on the Defence operating costs limit will be as follows:
£000s Class 1 vote Current operating costs limit Change Revised operating cost limit 1 10,139,854 -49,256 10,090,598 2 4,806,637 -52,300 4,754,337 3 735,976 — 735,976 Total 15,682,467 -101,556 15,580,911