Departmental Cash and Running Costs Limits (Hansard, 11 February 1999)

§ Mr. Prescott

Subject to Parliamentary approval of the necessary Supplementary Estimates, my Department' s cash limits will change as follows. All references to the take-up of end year flexibility refer to the Chief Secretary to the Treasury's announcement of 14 July 1998,Official Report, columns 131–36.

(i) the cash limit for class VI, Vote 1—Housing, construction, regeneration, countryside and wildlife, England—will be increased by £48,419,000 from £1,792,339,000 to £1,840,758,000. The principal changes are: an increase of £41,488,000 for expenditure in advance of EC receipts on European Regional Development Fund Objective 2 programmes incurred on behalf of this department (£22,395,000), the Department of Trade and Industry (£11,128,000), the Department of Culture, Media and Sports (£2,708,000) and the Department for Education and Employment (£5,177,000, including a small element for other old programmes); a transfer of £23,620,000 to the DETR/HC (Housing Corporation) cash limit mostly for Estates Renewal Challenge Fund grants to registered social landlords administered by the Housing Corporation from direct government expenditure on that programme; an increase of £16,994,000 for Single Regeneration Budget programmes, comprising the take up of £12,494,000 end-year flexibility and the transfer of £4,500,000 from the DETR/NC (New Towns) cash limit; and new provision of £17,657,000 for Coalfields Regeneration Trust expenditure. The Housing Action Trusts' external finance limit will be increased by £1,500,000 from £87,500,000 to £89,000,000 as a result of these changes. Lastly, £4,100,000 of Rent Assessment Panels provision, £1,500,000 of which is running costs, will be transferred to the cash limit for Class VI, Vote 5 (Department of the Environment, Transport and the Regions: administration).
(ii) the DETR/HC (Housing Corporation) cash limit will be increased by £24,138,000 from £709,773,000 to £733,911,000, reflecting a transfer of £23,620,000 from the Class VI, Vote 1 cash limit, most of which relates to a change in the Estates Renewal Challenge Fund payment arrangements described above, and £518,000 take up of end year flexibility.
(iii) the cash limit for Class VI, Vote 2—Planning, roads, local transport and vehicle safety—will be increased by £397,000 from £361,154,000 to £361,551,000. The increase reflects an inter vote transfer from Class VI, Vote 6 (Transport Industries), to bring forward the London wide implementation of the camera enforcement of bus lanes.
(iv) the DETR/LACAP (T) (Local Authority Capital—Transport) non-voted cash limit will be reduced by £23,575,000 from £319,340,000 to £295,765,000, to reflect the earlier transfer of transport ERDF credit approvals to the DETR/ERDF (European Regional Development Fund) non-voted cash limit.
(v) the cash limit for Class VI, Vote 3—Environmental protection and water—will be increased by £1,181,000 from £334,774,000 to £335,955,000. The increase reflects a transfer of £951,000 from the DETR/OES (other environmental services) cash limit for remedial work on contaminated land (£912,000), funding for the local authority air pollution unit (£20,000), both to be undertaken by the Environment Agency, and pneumoconiosis compensation payments (£19,000); a transfer of £250,000 from Class VI, Vote 13 (Ordnance Survey) for pneumoconiosis compensation payments; offset by a transfer of £20,000 to Class VI, Vote 5 (Department of the Environment, Transport and the Regions: administration) to allow for increased Departmental running costs following the winding up of the UK Ecolabelling Board.
(vi) the DETR/OES (other environmental services) cash limit will be reduced by £31,000 from £19,872,000 to £19,841,000. The decrease results from: the transfer of £912,000 from the contaminated land Supplementary Credit Approval programme to the Environment Agency for work on contaminated land; the transfer of £20,000 from the Isles of Scilly Supplementary Credit Approval programme to the Environment Agency towards the part-year costs of its take-over from DETR of the responsibilities of the local authority air pollution unit; the transfer of £19,000 from the Isles of Scilly SCA programme for pneumoconiosis grant payments; and the take up of £920,000 of capital end year flexibility entitlement.
(vii) the cash limit for Class VI, Vote 4—Local government and regional policy, England—will be reduced by £1,650,000 from £32,296,619,000 to £32,294,969,000. This decrease is the result of savings on special grant in support of Private Finance Initiative projects and on payments of valuation tribunals' expenses. It will allow an increase of £150,000 in provision for emergency financial assistance to local authorities outside the cash limit, and an increase of £1,500,000 in the DETR/LGR (local government reorganisation) non-voted cash limit.
(viii) the DETR/LGR (local government reorganisation) non-voted cash limit will be increased by £1,500,000 from £125,800,000 to £127,300,000 to meet increased demand for Supplementary Credit Approvals in connection with the commutation of annual loan charges and grants to local authorities on 1 October 1992.
(ix) the cash limit for Class VI, Vote 5—Department of the Environment, Transport and the Regions: administration—will be increased by £20,907,000 from £440,492,000 to £461,399,000. The increase reflects the take up of £4,780,000 by the Health and Safety Executive and £9,892,000 by the Department of the Environment, Transport and the Regions of running costs end year flexibility. In addition, an inter-vote transfer from Class VI, Vote 1 (Housing, construction, regeneration, countryside and wildlife, England) of £1,500,000 of running costs and £2,600,000 of other provision has been made to central administration; together with a transfer from Class VI, Vote 3 (Environment protection and water) of £20,000 in respect of the running costs associated with carrying out the residual functions of the UK Ecolabelling Board, following the decision to wind up this body; a transfer from the Department of Trade and Industry (Class V, Vote 1) in 313 respect of the capital costs of the Government Offices for the Regions; and an increase of £2,000,000 to provision in respect of increased claims arising from the sale of PSA businesses. Increases to provision for running costs and appropriations in aid for central administration have also been made to allow for the reclassification of recoverable VAT refunds in respect of the cost of contracted out services.
(x) the cash limit for Class VI, Vote 6—Transport industries—will be reduced by £3,397,000 from £75,190,000 to £71,793,000. This reduction consists of the transfer of £3,500,000 from a cash limited to a non-cash limited section of the vote; a transfer of £397,000 to Class VI, Vote 2 (Planning, roads, local transport and vehicle safety) to provide partial funding for the London wide implementation of bus lane camera enforcement, partially offset by an increase in provision of £500,000 to reflect the latest estimate of the legal costs of the National Bus Company pensions case. In addition a transfer of £1,000,000 will be made from the non-voted British Rail programme to the CTRL competition line of this vote for European Night Stock lease termination payments.
(xi) the cash limit for Class VI, Vote 7—Other Executive Agencies—will be increased by £1,205,000 from £117,472,000 to £118,677,000. The increase reflects a £700,000 transfer from Class VI, Vote 8 (Highways Agency) for a voluntary early retirement scheme in the Maritime and Coastguard Agency; a £208,000 transfer from Class VI, Vote 8 and £200,000 take up of running costs end of year flexibility for the Planning Inspectorate because of responsibilities taken on by the agency from other parts of DETR; and a £97,000 transfer from Class II, Vote I (Foreign and Commonwealth Office: overseas representation) for costs associated with the provision of survey and certification services by the Maritime and Coastguard Agency. The running cost provision for this vote will increase by £1,205,000 from £84,063,000 to £85,268,000.
(xii) the cash limit for Class VI, Vote 8—Highways Agency—will be increased by £14,869,000 from £1,420,601,000 to £1,435,470,000. This increase reflects the take up of £7,769,000 capital end year flexibility; take up of £8,000,000 from the DETR/NT (New Towns) non-voted cash limit for the Limehouse Link—East India Dock tie-in road; offset by the transfer of £900,000 running costs provision from Class VI Vote 8 to Class VI Vote 7 (Other executive agencies) in respect of the Maritime and Coastguard Agency (£700,000) and Planning Inspectorate (£200,000) to offset emerging pressures.
(xiii) the cash limit on Class VI, Vote 9—Driver and Vehicle Licensing Agency—will be increased by £1,000 from £98,799,000 to £98,800,000. The increase involves the take up of £1,425,000 to reflect the introduction of the vehicles first registration fee; additional provision of £385,000 arising from the introduction of graduated vehicle excise duty, increased running costs of £2,755,000 and additional programme costs of £6,218,000. The increases are offset by the inter vote transfer of £34,000 from the Department of the Environment for Northern Ireland (NIDI) and increased appropriations in aid of £13,614,000. The running cost provision on this vote is increased by £3,591,000 from £192,111,000 to £195,702,000.
(xiv) the cash limit for Class VI, Vote 10—Passenger Rail Services—will be increased by £431,000 from £1,254,889,000 to £1,255,320,000. This increase reflects the take up of £431,000 running costs end year flexibility to meet increased in-year requirements in relation to preparations for the creation of the shadow Strategic Rail Authority. In addition, gross provision and appropriations-in-aid will be adjusted in respect of recoverable VAT and to reflect forecast outturn for Support for Passenger Rail Services.
(xv) the cash limit for Class VI, Vote 11—Office of the Rail Regulator—will be increased by £408,000 from £8,920,000 to £9,328,000. This increase reflects the take-up of £408,000 314 running costs end year flexibility to meet increased in-year requirements associated with ongoing consultancy programmes and additional accommodation costs and to adjust gross provision and appropriations-in-aid in respect of recoverable VAT.
(xvi) the cash limit for Class VI, Vote 13—Ordnance Survey—will be reduced by £250,000 from £12,962,000 to £12,712,000. The decrease reflects an estimated underspend in running costs provision.
(xvii) the DETR/NT (New Towns) non-voted cash limit will be reduced from minus £103,100,000 to minus £115,600,000. This decrease is a result of the achievement of £7,000,000 additional capital receipts, £4,000,000 of which will be transferred to Class VI Vote 1 (Housing, construction, regeneration, countryside and wildlife, England) for a capital project undertaken by the Castle Vale Housing Action Trust, and £3,000,000 will be added to the Commission's expenditure to help it disengage from its lease/leaseback programme. The Commission's receipts target will be increased from £157,000,000 to £164,000,000 and its approved capital expenditure will be increased from £33,000,000 to £36,000,000. £8,000,000 allocated for the East India Dock road will be transferred to the Highways Agency (Class VI, Vote 8), and £500,000 allocated for University College, Stockton will be transferred to Class VI Vote 1, reducing the Commission's Urban Development Corporation inheritance element of the cash limit from £20,900,000 to £12,400,000.
(xix) as a consequence of the changes to Class VI, Votes 1,5,7,8 and 9, the gross running cost limit for the Department of the Environment, Transport and the Regions has been increased by £10,631,000 from £603,637,000 to £614,268,000. The gross running cost limit for the Health and Safety Executive has been increased by £4,780,000 from £156,945,000 to £161,725,000.

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.