Departmental Expenditure Limit (Hansard, 14 February 2002)

§ Mr. Milburn

Subject to parliamentary approval of the necessary Supplementary Estimate, the Department of Health, Departmental Expenditure Limit (DEL) will be increased by £231,363,000 from £50,573,402,000 to £50,804,765,000. This includes a change in the Administration Cost Limit which will decrease by £3,584,000 from £321,935,000 to £318,351,000. Within the DEL change, the impact on resources and capital are set out in the following table.

666W

£000
	Resources	Capital
Change	538,562	-307,199
New DEL	48,872,673	1,932,092
Of which voted	49,364,233	483,499
Non-voted	-491,560	1,448,593

The change in the resource element of the DEL arises from the take up of end-year flexibility £120,000,000 for health authority allocations as set out in Table 6 of the Public Expenditure 2000–01 Provisional Outturn White Paper Cm 5243 published in July 2001. A claim of £30,000,000 on the Reserve for variant CJD compensation. An additional £6,267.000 from HM Treasury as a result of technical adjustments following changes in accounting arrangements for some PFI schemes. A net transfer to the National Assembly of Wales of £2,493,000, £3,683,000 for out-of-area treatment costs, dental service increment for teaching, cross border flows and high security psychiatric services, partially offset by a transfer of £1,190,000 for regional re-costing and post graduate education. Transfers from Northern Ireland totalling £2,030,000, £68,000 for post graduate training, £1,941,000 for out of area treatment costs and £21,000 (of which £7,000 administration costs) for contributions to committees and non-departmental public bodies. Transfer to the Home Office of £1,569,000, £2,767,000 for drug action teams and match funded social care projects, offset by £1,098,000 for costs arising from the Victoria Climbie Inquiry and £100,000 for medium secure units. A net transfer to the Department for Education and Skills of £613,000, comprising of £750,000 for the National Institute of Psychiatry and £100,000 for a learning and development website package, offset by a transfer of £237,000 for the costs of Protection of Children Act tribunal and Care Standards tribunal. Transfer to the Lord Chancellors Department of £164,000, (of which £123,000 administration costs) for Care Standards tribunals and family health services appeals authority recruitment. A transfer to the Department for Work and Pensions of £1,095,000 for the road traffic accidents work of the compensation recovery unit. A transfer from the Department for Transport, Local Government and the Regions of £80,000,000, for building care capacity offset by £1,000,000, for the Rough Sleepers Unit.

The administration cost limit has decreased by £3,584,000 from £321,935,000 to £318,351,000. In addition to the changes detailed above there is an increase of £2,290,000, mainly for education and training and the modernisation agency, offset by £5,758,000, for capitalised in house software developments and other IT software and hardware. The increases will be offset by inter-departmental transfers and the planned total of public claim on the reserve, and will not therefore add to expenditure.