Departmental Expenditure Limits (Hansard, 28 November 2001)

§ Ms Hewitt

Subject to Parliamentary approval of the necessary Supplementary Estimate the Department of Trade and Industry DEL will be increased by £217,381,000 from £4,549,049,000 to £4,766,430,000 and the Administration Costs limit will be increased by £23,407,000 from £411,938.000 to £435,345,000. This is the impact on the DTI DEL excluding the Machinery of Government transfers from the Department for Transport, Local Government and the Regions. Further consideration is being given to the effect on the DEL for both Departments.

Within the DEL change, the impact on resources and capital is as set out in the table:

	£
Resources
Change	194,784
New DEL	3,971,606
of which:
Voted	1,393,728
Non-voted	2,577,878
Capital
Change	22,597
New DEL	794,824
of which:
Voted	482,703
Non-voted	312,121

The change in the resource element of the DEL arises from

(i) a transfer of £83,000 in administration costs from the Crown Prosecution Service for the administration of work taken over by the Insolvency Service;
(ii) a transfer of £960.000 from the Foreign and Commonwealth Office for the administration of British Trade International;
(iii) a transfer of £776,000 in administration costs provision to the Cabinet Office for the funding of Government Offices of the Regions to reflect Machinery of Government transfers;
(iv) take up of £6,919,000 from the unused balance of the Department's administration costs end-year flexibility entitlement;
(v) a transfer of £256,000 in administration costs from HM Treasury in respect of the Evidence Based Policy Fund Project;
(vi) a transfer of £2,272,000 in administration costs from the Department for Education and Skills for the administration of the Work-Life Balance to reflect Machinery of Government transfers;
(vii) a transfer of £19,000 in administration costs from the Home Office for the administration of the Easter & British Summer Time; Sunday Trading, Street Markets and Chartered Fairs Projects to reflect Machinery of Government Transfers;
(viii) a transfer of £220,000 in administration costs and £273,000 in programme costs from the Home Office for the administration of the Prison Pay Review Service;
(ix) a transfer of £5,300,000 from capital to administration costs under the Public Private Partnership project for the funding of the Electronic Business Strategy;
(x) take up of £8,121,000 from the unused balance of the Department's end-year flexibility entitlement for the Capital Modernisation Fund for Small and Medium Enterprise on-line projects;
(xi) a reclassification of the payment of £700,000 to SITPRO (Simpler Trade Procedures Board) as a Grant-in-Aid to a Non-Departmental Public Body, thereby increasing non-Voted DEL and decreasing voted DEL by the above amount;
(xii) a transfer of £58,000 from the Department for Transport, Local Government and the Regions for the provision of a helpline for the European Union's Framework Five Thematic Programme for comparative and sustainable growth;
(xiii) take up of £27,400,000 from the unused balance of the Department's end-year flexibility entitlement for payments to redundant steel workers under the European Coal & Steel Community (ECSC) Treaty and to certain steel production workers based on the Treaty;
(xiv) a reclassification from capital to resource of £3,722,000 for the Rover Task Force Modernisation and Diversification Projects;
(xv) a reclassification from capital to resource of £175,000 for the Regional Innovation Fund Corridor Study;
(xvi) take up of £3,000,000 from the unused balance of the Department's end-year flexibility entitlement in respect of £1,000,000 for UK Global Partnerships and the transfer of £2,000,000 to British Trade International for enterprise scholarships and pilot programmes for entrepreneurs;
(xvii) a transfer of £340,000 from the Home Office for the Design against Crime Reduction Project;
(xviii) a transfer of £70,000 from the Department for Education and Skills for Work-Life Balance Secondees;
(xix) a transfer of £1,535,000 from the Department for Education and Skills for publicity and evaluation in relation to the Work-Life Balance project to reflect Machinery of Government transfers;
(xx) a transfer of £4,450,000 in resources and £50,000 in Appropriations in Aid from the Department for Education and Skills for the Work Life Balance project to reflect Machinery of Government transfers;
(xxi) a transfer of £22,158,000 from the Department for Transport, Local Government and the Regions in respect of support for the construction industry to reflect Machinery of Government transfers;
(xxii) a transfer of £6,684,000 in administration costs to reflect Machinery of Government transfers from the Department for Transport, Local Government and the Regions in respect of support for the construction industry;
(xxiii) a reclassification of £17,440,000 from voted to non-Voted DEL to reflect the funding of Regional Development Agencies following Machinery of Government changes xxiv) a transfer of £350,000 to the Office of Gas and Electricity Markets to cover their costs of implementing the Climate Change Levy exemption for electricity from renewable sources xxv) take up of £3,100,000 from the unused balance of the Department's end-year flexibility entitlement for the Shipbuilding Intervention Fund;
(xxvi) take up of £2,320,000 from the unused balance of the Department's end year flexibility entitlement in respect of expenditure related to the National Minimum Wage;
(xxvii) a transfer of £10,000 to British Trade International in respect of a feasibility study for the development of an international banking facility;
(xxviii) take up of £2,000,000 from the unused balance of the Department's end-year flexibility entitlement to provide for increased non-Voted expenditure by the Coal Authority on minewater pollution and to offset a shortfall in receipts from property sales as a result of foot and mouth restrictions.

RfR2

(i) take up of £100,000 of the non-Voted Science Departmental Unallocated Provision to increase voted grant to the Royal Society for the Foot and Mouth Disease (FMD) inquiry;
(ii) take up of £3,000,000 of the non-voted Science Departmental Unallocated Provision for additional voted funding of the Beagle II Lander project, with creation of a token £1,000 Appropriations in Aid;
(iii) take up of £12,499,000 from the unused balance of the Department's end-year flexibility entitlement to fund University Challenge Fund projects delayed from previous years;
(iv) take up of £415,000 of the Science Departmental Unallocated Provision for voted funding of Foresight LINK Awards;
(v) take up of £5,000,000 from the unused balance of the Department's end-year flexibility entitlement to fund Science Enterprise Challenge projects;
(vi) a transfer of £205,000 in administration costs from the Home Office to the Office of Science and Technology for the administration of the Foresight Crime Prevention Panel;
(vii) a transfer of £45,000 in administration costs from the Office of Science and Technology to the Department of Health for Human Genetic Research;
(viii) an increase of £35,577,000 in the non-voted resource expenditure of certain Science Research Councils;

In addition to the above changes reflected in the RfRs, the resource DEL has also changed as a result of increased non-voted expenditure on provisions of £43,300,000 (funded from the unused balance of the Department's end-year flexibility entitlement).

The change in the capital element of the DEL arises from:

RfR1

(i) take up of £10,792,000 of end-year flexibility from the Capital Modernisation Fund for the Small Business Service Gateway Projects;
(ii) a transfer of £790,000 from the Foreign and Commonwealth Office for the administration of British Trade International;
(iii) a transfer of £5,300,000 from capital to administration costs under the Public Private Partnership project for the funding of the Electronic Business Strategy;
(iv) a reclassification from capital to resource of £3,722,000 for the Rover Task Force Modernisation and Diversification Projects;
(v) a reclassification from capital to resource of £175,000 for the Regional Innovation Fund Corridor Study;
(vi) to take up £3,200,000 from the unused balance of the Department's capital end-year flexibility entitlement for the conversion of part of Victoria Street restaurant area into conference facilities;
(vii) a reclassification of £31,200,000 from voted to non-Voted DEL to reflect the funding of Regional Development Agencies via Grant in Aid following Machinery of Government changes;
(viii) take up of £9,300,000 from the unused balance of the Department's end year flexibility entitlement for the Trent Engine Development Project;
(ix) a transfer of £19,000 in capital to reflect Machinery of Government transfers from the Department for Transport, Local Government and the Regions in respect of Construction Initiatives, Regional Development Agencies and the London Development Agency.

RfR2

(i) increases in non-Voted expenditure of £1,000,000 by the Particle Physics and Astronomy Research Council and £3,000,000 by the Council for the Central Laboratory 999W of the Research Councils, funded by a £4,000,000 reduction in voted provision for the Synchrotron Radiation Source project;
(ii) an increase of £7,693,000 in the non-voted resource expenditure of certain Science Research Councils.

In addition, subject to Parliamentary approval of the necessary Supplementary Estimate, the Office of Fair Trading Departmental Expenditure Limit will be increased by £7,680,000 from £32,845,000 to £40,525,000 and the administration costs limits will be increased by £6,981,000 from £31,163,000 to £38,144.000. Within the DEL change, the impact on resources and capital is as set out in the table:

	£000
Resources
Change	6,850
New DEL	38,297
of which:
Voted	38,297
Non-voted	0
Capital
Change	830
New DEL	2,228
of which:
Voted	2,228
Non-voted	0

The change in the resource element of the DEL arises from the provision of £6,230,000 to enable the Office of Fair Trading to meet commitments set out by the Chancellor of the Exchequer and the Secretary of State for Trade and Industry in the Enterprise Statement. In addition, there is an increase in the resource element of the DEL resulting from the take up of end year flexibility provision of £620,000.

The change in the capital element of the DEL arises from the provision of £830,000 to enable the Office of Fair Trading to meet commitments set out by the Chancellor of the Exchequer and the Secretary of State for Trade and Industry in the Enterprise Statement.

Also, subject to Parliamentary approval of the necessary Supplementary Estimate, the Office of Telecommunications DEL will be increased by £126,000 from £1,599,000 to £1,725,000 and the administration costs limits will be increased by £231,000 from £15,718,000 to £15,949,000. Within the DEL change, the impact on resources and capital are as set out in the table:

	Number
Resources
Change	1
New DEL	720
of which:
Voted	720
Non-voted	0
Capital
Change	125
New DEL	1,005
of which:
Voted	1,005
Non-voted	0

1000W

The change in the resource element of the DEL arises from 2000–01 consultancy projects which were delayed until the new financial year.

The change in the capital element of the DEL arises from a capital project having a phased implementation leading to additional costs in 2001–02.

In addition, subject to Parliamentary approval of the necessary Supplementary Estimate, the Postal Services Commission's DEL will be increased by £222,000 from £1,000 to £223,000 and the administration costs limits will be increased by £700,000 from £2,300,000 to £3,000,000. Within the DEL change, the impact on resources and capital are as set out in the table:

	£000
Resources
Change	0
New DEL	-99
of which:
Voted	1
Non-voted	-100
Capital
Change	222
New DEL	322
of which:
Voted	322
Non-voted	0

The change in the capital element of the DEL arises from the take up of the Commission's capital End Year Flexibility entitlement of £222,000 announced in Table 6 of the Public Expenditure 2000–01 Outturn White Paper (Cm5243).

The change in the administration costs limit reflects an increase in staff numbers.

Also, subject to Parliamentary approval of the necessary Supplementary Estimate, the Departmental Expenditure Limit for the Office of Gas and Electricity Markets will be increased by £350,000 from £351,000 and the administration costs limit will be increased from £350,000 from £35,780,000 to £36,130,000. Within the DEL change, the impact on resources and capital is as set out in the following table:

	Number
Resources
Change	350
New DEL	351
of which:
Voted	351
Non-voted	0
Capital
Change	0
New DEL	965
of which:
Voted	965
Non-voted	0

The change in the resource element of the DEL arises from a transfer of £350,000 from the Department of Trade and Industry to cover the costs of implementing the Climate Change Levy exemption for electricity from renewable sources.

1001W

All of the above increases will either be offset by inter-departmental transfers, take-up of End-Year Flexibility or use of Departmental Unallocated Provisions and will not therefore add to the planned total of public expenditure.