Administration and Buildings Funding (Hansard, 8 September 2003)

§ Mr. Charles Clarke

My Department makes available an annual grant which funds UFI's infrastructure and operating costs such as product development. In 2003–04 UFI has set aside £23.636 million to cover administration costs and £1.818 million to cover buildings costs. UFI does not allocate separate local funds for either administration or buildings.

In 2002–03 UFI central expenditure on marketing and advertising was: (a) £10.126 million for marketing (b) £8.652 million for advertising. Much of the marketing developed centrally is also used locally by learndirect centres and hubs. Marketing and advertising at local level does however remain the responsibility of learndirect hubs and centres, many of which are private organisations who set their budgets accordingly. No central information is held on this local expenditure.

In 2003–04 UFI have allocated £1.867 million for spend on consultants centrally. UFI uses consultants to support the development of the national learndirect network and does not allocate consultancy budgets at local level.

The Learning and Skills Council (LSC)'s administration budget for 2003–04 is £218 million. This includes provision for expenditure on buildings. No specific amount for such provision is, however, earmarked. How the LSC allocates the £218 million funding for use centrally and locally, the amounts spent on marketing and advertising, and funding allocated for spending on consultants are matters for the Learning and Skills Council. I have therefore asked John Harwood, the Council's Chief Executive, to write to the hon. Gentleman with this information and to place a copy of his reply in the Library.

For 2003–04 my Department has allocated £6.098 million for the salaries and associated administrative costs of staff comprising the Connexions Service National Unit. In addition, £2.625 million has been allocated to the Government Offices for the salary and associated administration costs of their staff managing Connexions.

It is not possible to disaggregate the building costs associated with Connexions Service National Unit staff from the costs of other departmental staff using the same head office building, nor those costs associated with Government Office staff working on Connexions from those associated with other Government Office staff.

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When allocating funding locally to Connexions Partnerships no part is ring fenced specifically to meet administration and buildings costs. Partnerships have flexibility to use their funding in a way which best meets local needs.

In 2002–03 central expenditure on marketing and advertising was: (a) £1.815 million for marketing (b) £1.451 million for advertising Locally, Connexions Partnerships are able to use their funding flexibility to address their own particular circumstances. Data is collected centrally on the broad areas of Partnerships' expenditure but not at a level detailed enough to enable identification of how much has been spent on marketing and advertising.

No funding is allocated specifically for spending on consultants either nationally or regionally. However budget holders may decide to engage consultants where it is judged to be the most cost-effective method of achieving objectives When allocating funding locally to Connexions Partnerships no part is ring fenced for consultants. Partnerships have flexibility to use their funding in a way which best meets local needs.