§ Mr. MaudeTo ask the Chancellor of the Exchequer if he will make a statement on the restrictions on departments channelling funds from capital expenditure to current expenditure listing(a) the restrictions, (b) what exceptions apply to these restrictions and (c) what margin for flexibility applies to these restrictions. [68383]
§ Mr. MilburnUnder the new public spending framework introduced in the Comprehensive Spending Review, Departments' capital and current expenditure are now planned and managed separately to ensure that the Government's fiscal rules are met, and to prevent capital354W investment being cut back to meet short-term pressures on current spending. As set out in the Economic and Fiscal Strategy, departments are able to channel funds earmarked for capital expenditure into current spending only within an agreed margin, to allow for managerial flexibility or to finance private-public partnerships. The margin agreed varies between departments depending on their circumstances but is on average around 5 per cent. of their total capital budget.