Cash Limits (Hansard, 23 February 1998)

§ Mr. Dobson

Subject to Parliamentary approval of the necessary Supplementary Estimates, the cash limit for Class XI, Vote 1 (Hospital, community health, family health and related services, England) will be increased by £203,554,000 (from £29,353,438,000 to £29,556,992,000). This allows for increases of £242,965,000 in respect of the take up of amounts under the end year flexibility scheme as announced by the Chief Secretary to the Treasury on 17 July 1997,Official Report, columns 245–50; and £159,000,000 from the Reserve for that element of Department of Health's National Health Service winter pressures money allocated to cash limited lines. This increase is partially offset by a transfer of £232,882,000 following a re-appraisal of drugs budget requirements (£215,500,000) and for health centre rents (£17,382,000). In addition the following transfers will take place: £6,000,000 from Class XI Vote 2 (Department of Health, administration, miscellaneous health and personal social services, England) to contribute to additional NHS funding in 1997–98; £3,257,000 from Class XVIII, Vote 4 (Office of the Parliamentary Commissioner and Health Service Commissioners) as an offset for previously funded activity not now required; £373,000 from Class XII, Vote 1 (Central government administered social security benefits and other payments) for hearing aids for war pensioners and £25,000,000 from NHS Trusts non voted external finance, partially offset by transfers of £60,000 to Class XII, Vote 3 (Department of Social Security, administration) for start-up costs of the Compensation Recovery Unit; £19,000 to Class XIII, Vote, 4 (Hospital, community health, family health, other health services and welfare food, Scotland) for General Practice Fundholders cross border flows, and £80,000 to Class XI, vote 2 (Department of Health, administration, miscellaneous health and personal social services, England) for work on injury benefits recharging.

87W

The cash limit for Class XI, Vote 2 (Department of Health, administration, miscellaneous health services and personal social services, England) will be increased by £86,828,000 (from £995,737,000 to £1,082,565,000). This increase allows for a claim on the Reserve of £86,600,000 to support the asylum seekers' accommodation grant and persons from abroad childrens' grant; £6,000,000 (running costs) in respect of the take up of amounts under the end year flexibility scheme as announced by the Chief Secretary to the Treasury on 17 July 1997, Official Report, columns 245–50. The increase also allows for the following transfers, £300,000 (running costs) from Class XII, Vote 3 (Department of Social Security: administration) for law charges; £112,000 from Class XVI, Vote 11 (Office for National Statistics) for the transfer of responsibility of notification of infectious diseases statistics; £80,000 (into running costs) from Class XI, Vote 1 (Hospital, community health, family health and related services, England) for injury benefits recharging; £80,000 (into running costs) from Class XIII, Vote 4 (Hospital, community health, family health, other health services and welfare food, Scotland) for the Nurses, Midwives and Health Visitors Act (£50,000) and for the National Screening Committee (£30,000); £25,000 (into running costs) from Class XIV; Vote 3 (Roads and transport, housing, other environmental services, Cadw, arts and libraries, health and personal social services, European Regional Development Fund and Welsh Office administration, Wales) for the Nurses, Midwives and Health Visitors Act; £15,000 (into running costs) from Class XIV, Vote 4 (Hospital, community health, family health and other health services (part), Wales) for the National Screening Committee; £33,000 (into running costs) from the Department of Health and Social Services, Northern Ireland for the Nurses, Midwives and Health Visitors Act (£25,000) and for the National Screening Committee (£8,000). The overall increase is partially offset by transfers of £6,000,000 (running costs) to Class XI, Vote 1 (Hospital, community health, family health and related services, England) towards additional funding for the National Health Service; £373,000 to Class XIII, Vote 4 (Hospital, community health, family health, other health services and welfare food, Scotland) for the Medical Devices Agency Evaluation Service; and £44,000 (running costs) to Class XVIII, Vote 3 (Privy Council Office) for the Central Drugs Co-ordinating Unit.

The Department's gross running cost limit will be reduced by £4,494,000 from £260,129,000 to £255,635,000 made up of a net increase of £489,000 reflecting the transfer to and from running costs mentioned above and a reduction of £4,983,000 to meet increased capital spending and a shortfall in receipts.

All increases will either be offset by savings, increased receipts, or transfers to or from other Votes and non voted provision, or charged to the Reserve, and will not therefore add to the planned total of public expenditure.

Overall the External Financing Limit for NHS Trusts is decreased by £142,835,000 from £309,950,000 to £167,115,000.