Written Statement of 27 November 2003

WALES

  Powys NHS Trust
  The Secretary of State for Wales (Mr. Peter Hain)
  Pursuant to the dissolution of the Powys NHS trust on 1 April 2003 and its absorption into the Powys Local Health Board, and the remission of the outstanding debt of the dissolved trust, HM Treasury has presented a Minute to the House on 27/11/2003 giving particulars and circumstances of the remission proposed by the National Assembly for Wales which it has approved in principle.

  Departmental Expenditure Limit
  The Secretary of State for Wales (Mr. Peter Hain)
  The Wales Departmental Expenditure Limit will be increased by £1,344,000, from £10,608,142,000 to £10,609,486,000. The increase is a result of:

  (a) £1,957,000 adjustment for Council Tax Benefit and Rural Rate Relief measures;

  (b) £1,368,000 in respect of Countryside Commission for Wales pensions; and

  (c) Net transfers to other Government Departments from the National Assembly for Wales of £1,981,000.

  Resources

  Capital

  Change

  New DEL

  Of which voted

  Non-voted

  Change

  New DEL

  Of which voted

  Non-voted

  126,848

  3,765,954

  2,891,954

  874,000

  500

  11,500

  11,500

  —

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

  RfR 1: Eliminating Poverty in Poorer Countries

  a transfer of £10,000,000 resource from the Unallocated subhead to the Reducing Poverty in sub-Saharan Africa Grants subhead;

  a transfer of £14,000 resource from DFID Reducing Poverty in Asia subhead to the Foreign and Commonwealth Office as a contribution to a British Geological Survey visit to Afghanistan;

  a transfer of £3,250,000 resource from the Central Reserve to the Reducing Poverty in the Rest of the World Administration subhead;

  a transfer of £1,000,000 resource from DEFRA representing a contribution to the Environmental Know-How Fund;
  2WS
  These transfers are as follows:

  (i) £4,168,000 to the Department for Constitutional Affairs in respect of the Wales Office;

  (ii) £137,000 to ODPM for Ordnance Survey Pan Government Agreement (CCW);

  (iii) £410,000 to ODPM for Ordnance Survey Pan Government Agreement (Planning);

  (iv) £90,000 to ODPM for Ordnance Survey Pan Government Agreement (WDA);

  (v) £395,000 from DWP for administration costs of additional financial assessments for Residential Allowances;

  (vi) £97,000 from ODPM for Community Fire Safety;

  (vii) £500,000 from the Home Office for Operation Tarian;

  (viii) £371,000 from the Home Office for Staff Costs;

  (ix) £193,000 from the Home Office for non—pay costs for regional government offices;

  (x) £1,268,000 from the DTI for End of Life Vehicles.

  D.E.L provision for the Wales Office of £4,154,000 (net of depreciation) including £3,330,000 for administration costs is included within the limits of the Department for Constitutional Affairs.

INTERNATIONAL DEVELOPMENT

  Departmental Expenditure Limit
  The Secretary of State for International Development (Hilary Benn)
  Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department for International Development DEL for 2003–04 will be increased by £127,348,000 from £3,629,106,000 to £3,756,454,000 and the administration costs limits has been increased by £3,250,000 from £209,000,000 to £212,250,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  a transfer of £116,250,000 resource from the Central Reserve to the Reducing Poverty in the Rest of the World Grants subhead;

  a transfer of £75,000,000 resource from the Unallocated subhead to the Reducing Poverty in the Rest of the World Grants subhead;

  a transfer of £38,000 resource from DFID Developing Innovative Approaches to Development subhead to the Home Office as DFID's contribution to GRECO membership;

  a transfer of £6,400,000 resource from the Central Reserve to the Developing Innovative Approaches to Development Grants subhead.

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

  a transfer of £500,000 from the Central Reserve to the Reducing Poverty in the Rest of the World capital subhead.

HOME OFFICE

  Departmental Expenditure Limit
  The Secretary of State for the Home Department (Mr. David Blunkett)
  Plans of changes to the Departmental Expenditure Limit and Administrative Cost Limit for 2003–04 are set out below.

  Subject to Parliamentary approval of the necessary Supplementary Estimate, the Home Office's Departmental Expenditure Limits for 2003–04 will be decreased by £11,514,000 from £12,546,484,000 to £12,534,970,000 and the administration costs limit will be increased by £80,386,000 from £3,351,317.000 to £3,431,703,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  27,367

  10,155,844

  1,544,825

  11,700,669

  Capital

  -38,881

  822,573

  233,546

  1,056,119

  Depreciation*

  —

  -182,725

  -39,093

  -221,818

  Total

  -11,514

  10,795,692

  1,739,278

  12,534,970

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
  Details of the changes are available in the House Library.

DEPUTY PRIME MINISTER

  Departmental Expenditure Limit
  The Deputy Prime Minister (Mr. John Prescott)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office of the Deputy Prime Minister's Departmental Expenditure Limits for 2003–04 will change as follows:

  (1) the Office of the Deputy Prime Minister's Main Programmes DEL will be increased by £259,342,000 from £6,655,307,000 to £6,914,649,000 and the administration costs limit will be increased by £29,268,000 from £367,110,000 to £396,378,000. Within the DEL change, the impact on resource and capital are tabled below.

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  212,829

  3,036,150

  1,978,998

  5,015,148

  Capital

  46,513

  640,465

  1,259,036

  1,899,501

  Depreciation*

  1,594

  -16,468

  -2,000

  -18,468

  Total

  260,936

  3,660,147

  3,236,034

  6,896,181

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. The change in depreciation is due to capital spending on The Rent Service and Planning Inspectorate Executive Agency programmes and transfer from the provision for Regional Development Agencies to the Department of Trade and Industry.
  4WS
  The change in the resource element of the DEL arises from:

  (i) take up of End Year Flexibility of £266,254,000 comprising:

  (a) £81,762,000 for the Sustainable Communities Plan;

  (b) £64,727,000 for Housing programmes expenditure;

  (c) £35,104, 000 for Fire Services (mass decontamination, search and rescue, firelink radio systems and the White Paper;

  (d) £5,550,000 for the Fire Service College building refurbishment;

  (e) £6,200,000 for Regional Policy programme expenditure;

  (f) £500,000 for the Audit Commission:

  (g) £300,000 for research expenditure;

  (h) £7,269,000 (administration costs) for administration expenditure by The Rent Service and Planning Inspectorate Executive Agencies;

  (i) £2,761,000 for programme expenditure by the Planning Inspectorate Executive Agency;

  (j) £23,000 from the Evidence Based Policy Fund for Research;

  (k) £41,038,000 non-voted for the Housing Corporation;

  (l) £21,020,000 non-voted for Regional Development Agencies.

  (ii) a net transfer of £52,925,000 to other government departments, comprising:

  (a) £1,600,000 from Department for Environment, Food & Rural Affairs, £1,404,000 from Department for Transport, £8,000 from Department for Health, £125,000 from Department for Culture, Media & Sports, £58,000 from Her Majesty's Treasury, £30,000 from Home Office, £686,000 from The Scottish Executive, £177,000 from Department for Trade & Industry, £275,000 from Ministry of Defence, £244,000 from Her Majesty's Custom & Excise, £148,000 from Forestry Commission and £637,000 from The Welsh Assembly for Payment to Ordnance Survey in relation to the Pan Government Agreement for supply of mapping data;

  (b) £181,000 (administration costs) from Cabinet Office following the transfer of the Civil Contingencies Secretariat;

  (c) £75,000 (administration costs) to Department for Transport for the Honours Secretariat and the Equality and Diversity Unit;

  (d) £162,000 (administration costs) to Department for Health, £20,000 to Department for Culture, Media and Sports, £60,000 to Department for Environment, Food and Rural Affairs, £258,000 to Department of Education and Skills, £75,000 to Department for Transport, £70,000 to Department for Work and Pensions, and £60,000 to Home Office in respect of Local Government Public Service Agreements;

  (e) £502,000 (administration costs) to Department for Constitutional Affairs following Machinery of Government changes;

  (f) £700,000 from the Department for Transport to the Research Team to reverse a previous Machinery of Government change;

  (g) £130,000 from Home Office for Special Grants programme;

  (h) £100,000 from the New Ventures Fund to the Department of Education and Skills for a joint Residents' Consultancy Project;

  5WS

  (i) transfers to Home Office of £2,000,000 for a joint Capacity Building and Crime Initiative, £250,000 for Community Support Teams, £1,500,000 for the Pathfinder projects and £30,000 for the Good Practice Events from the New Ventures Fund;

  (j) £861,000 (administration costs) from Government Offices administration to the Department of Trade and Industry to reflect the reduction in review work;

  (k) £2,315,000 (administration costs) from Department for Environment, Food and Rural Affairs to Government Offices administration for additional core agenda work;

  (l) £17,104,000 (administration costs) from the Home Office to Government Offices administration in respect of Crime reduction, Active Communities Unit, Street Crime initiative, Community Cohesion, Drugs Prevention Advice, Communities Policy, Business Crime Advisors and core funding from SR2002 settlement;

  (m) £762,000 (administration costs) from the Department for Culture, Media and Sports to Government Offices administration for Core agenda and funding from SR2002 settlement;

  (n) £1,365,000 (administration costs) from Department for Transport to Government Offices administration for work on DfT agenda and funding from SR2002 settlement;

  (o) £2,415.000 (administration costs) from Department for Education and Skills to Government Offices administration for core agenda, adult basic skills, additional Connexions funding and SR2002 settlement;

  (p) £97,000 to the Welsh Assembly for Community Safety schemes;

  (q) £77,169,000 from provision for Regional Development Agencies to Department for Trade and Industry.

  (iii) An increase in receipts of £10,667,000 to offset similar increase in provision for Payment to Ordnance Survey and £850,000 to offset a similar increase in provision for Research.

  (iv) A transfer of £500,000 to Request for Resources 2, to fund Audit Commission Performance Assessment.

  (v) A net transfer of £21,844,000 from voted to non-voted provisions comprising:

  (a) a transfer of £107,462,000 to non-voted DEL for the Housing Corporation;

  (b) a transfer of £81,141,000 from non-voted to increase voted resource investment for the Sustainable Communities Plan;

  (c) a transfer of £4,477,000 from non-voted Departmental Unallocated provision to voted provision (£2,000,000 for central administration) and (£2,477,000 for the Planning Inspectorate Executive Agency administration costs).

  (vi) A reclassification of £91,462,000 New Deal for Communities resource investment provision as capital by a transfer to the Housing Corporation, non-voted provision fully offset by a transfer of capital from the Sustainable Communities Plan.

  (vii) As a result of the changes to Request for Resources 1, the Office of the Deputy Prime Minister's administration provision has been increased by £29,268,000 from £379,652,000 to £408,920,000.

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

  (a) take up of end year flexibility of £44,093,000 comprising

  (i) £21,360,000 for the Sustainable Communities Plan;

  (ii) £2,994,000 for Housing programmes expenditure;

  6WS

  (iii) £9,647,000 Capital Modernisation Fund for fire services (New Dimension);

  (iv) £1,500,000 for The Rent Service;

  (v) £40,000 Capital Modernisation Fund (Evidence Based Policy Fund) for The Rent Service;

  (vi) £8,552,000 for the Office of the Deputy Prime Minister's own capital expenditure;

  (b) a transfer of £2,420,000 from the Department for Trade and Industry for core funding from SR2002 settlement.

  Within the capital element of the DEL there is a net transfer of £66,267,000 from non-voted to voted provisions, comprising: £14,500,000 from provision to non-voted English Partnerships; £8,078,000 supplementary credit approvals for other housing programmes; £5,556,000 local authority Supplementary credit approvals for Fire New Dimension Search and Rescue and £67,133,000 to partly fund the New Deal for Communities reclassification).

  (2) The Office of the Deputy Prime Minister's Local Government DEL will be increased by £27,947,000 from £41,331,545,000 to £41,359,492,000. Within the DEL change, the impact on resources and capital are tabled below.

  £000

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  19,498

  40,928,700

  98,082

  41,026,782

  Capital

  8,449

  324,710

  8,000

  332,710

  Depreciation*

  0

  0

  0

  0

  Total

  27,947

  41,253,410

  106,082

  41,359,492

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

  (i) take up of End Year Flexibility of £13,298,000 comprising:

  (a) £3,375,000 for Valuation Services;

  (a) £335,000 for Local Government on Line;

  (a) £240,000 for Electoral Law;

  (a) £8,475,000 for Other Grants and Payments;

  (a) £873,000 draw down from Invest to Save Budget;

  (ii) a transfer of £500,000 from Request for Resources 1 for Audit Commission Performance Assessment;

  (iii) a transfer of £5,700,000 from capital for Local Government on Line.

  The change in the capital element of the DEL arises from draw down of £12,000,000 from the capital modernisation fund (end year flexibility), £2,149,000 from the Invest to Save Budget and a transfer of £5,700,000 to resource to increase provision for Local Government on Line.

  Non-domestic Rates (2004-05)
  The Minister for Local Government, Regional Governance and Fire (Mr. Nick Raynsford)
  On Wednesday 19 November 2003, I presented the provisional local government finance settlement for 2004–05. Included in the announcement was the
  7WS
  amount available of non-domestic rates in England for 2004–05 to be redistributed to local authorities. This statement details the calculation of the distributable amount and announces provisionally the non-domestic rate poundage (multiplier) for 2004–05 as 45.6 pence.

  £million

  2001–02 Outturn

  2002–03 Outturn

  2003–04 Provisional outturn

  2004–05 Estimated contribution

  1. Income from local lists

  Multiplier (p)

  43.0

  43.7

  44.4

  45.6

  Gross rate yield in respect of current year

  16,952

  17,195

  17,200

  17,400

  (i)Reliefs

  (a) Net Transitional Relief

  -493

  -182

  -93

  -110

  (b) Empty or partly occupied properties

  -1,049

  -1,144

  -1,147

  -1,160

  (c) Charitable

  -583

  -603.

  -616

  -622

  (d) Rural shops and post offices

  -5

  -6

  -6

  -7

  (e) Community amateur sports clubs

  -

  -

  -

  -8

  (f) Discretionary

  -43

  -42

  -46

  -49

  Net rate yield in respect of current year after reliefs

  14,778

  15,219

  15,292

  15,444

  (ii) Collection costs and other reductions to contributions

  (a) Costs of collection

  -84

  -84

  -84

  -84

  (b) Losses on collection

  -95

  -106

  -120

  -121

  (c) City of London offset

  -7

  -7

  -7

  0

  Total contribution in respect of current year

  14,592

  15,023

  15,082

  15,238

  (iii) Prior year adjustments

  (a)Interest on repayments

  -70

  -50

  -42

  -38

  (b) Repayments

  -270

  -479

  -472

  -429

  Net rate yield from local lists

  14,252

  14,484

  14,568

  14,771

  2. Income from Central list

  Net central list yield

  1,049

  l'O44

  1,045

  1,050

  3. Income from the former Crown list

  Contributions in lieu of rates

  12

  8

  9

  9

  Total yield

  15,313

  15,536

  15,622

  15,830

  4. Exchequer Contributions

  Exchequer contribution towards transitional relief

  262

  41

  0

  77

  Total NNDR pool payments (= 1+2 + 3+4)

  15,575

  15,577

  15,622

  15,907

  5. Adjustments

  Surplus brought forward

  -305

  134

  -915

  -893

  Combined total

  15,270

  15,711

  14,707

  15,014

  Distributable amount

  15,136

  16,626

  15,600

  15,000

  Surplus carried forward

  134

  -915

  -893

  The above calculation involves estimating several figures that are inherently difficult to forecast accurately, such as the gross rate yield and the prior year adjustments. The resulting figure of £15.014 billion has therefore been rounded to £15 billion exactly to avoid spurious accuracy.

  Notes:

  For 2001–02 and 2002–03 the amounts shown are those recorded in the outturn (NNDR3) returns. For 2003–04 the amounts shown are the provisional outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool. For 2004–05 the estimates are based on:

  1. Item 1: The gross calculated rate yield represents the total value of non-domestic hereditaments on local rating lists adjusted in relation to previous years outturn information regarding the gross rate yield times the multiplier.

  2. Item 1(i)(a): The transitional decrease adjustment includes the estimated amount of rates that will not be recouped from local list ratepayers under the transitional arrangements made by egulations under section 58 of the Local Government Finance Act 1988 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.

  3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 2004–05 figure includes an allowance for the increase in the gross rate yield.

  4. Item 1(i)(c): Charitable rate relief. The 2004–05 figure includes an allowance for the increase in the gross rate yield.

  5. Item 1(i)(d): Rural Shops and Post Office relief. Figures include mandatory relief for general stores and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards includes mandatory relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and mandatory relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2004–05 figure includes an allowance for the increase in the gross rate yield.

  6. Item 1(i)(e): Community Amateur Sports Clubs (CASCs). Mandatory rate relief for sports clubs registered with the Inland Revenue as Community Amateur Sports Clubs under the Section 64 of the Local Government Act 2003. This provision comes into effect on 1 April 2004. Sports Clubs that have not registered will still be eligible for discretionary relief allowed to non-profit making bodies.

  7. Item 1(i)(f): Discretionary relief granted to charities, non-profit making organisations and for other reasons including discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards include discretionary relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and discretionary relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2004–05 figure includes an allowance for the increase in the gross rate yield.

  8. Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by authorities in collecting non-domestic rates from ratepayers.

  8WS
  The amount of non-domestic rates in England for 2004–05 to be redistributed to local authorities will be £15 billion.

  The calculation of the distributable amount for 2004–05 is set out in the table below.
  9WS
  9. Item 1(ii)(c): City Offset—the amount which the City of London will not be required to pay into the non-domestic rating pool. It is the amount which will be retained by the City to meet its own expenditure. In 2004–05, City offset is to be set to zero.

  10. Item 1(iii): net adjustment in respect of appeals and other amendments to the rating list affecting liability for previous years rates settled in that year: comprising repayments and associated interest payments.

  11 Item 2: the rateable value of non-domestic hereditaments on the central rating list times the multiplier, less the net effect of transitional arrangements, and adjusted for appeals and other changes in respect of previous years.

  12. Item 3: Almost all properties previously included in the Crown List are included in the local list figures at item 1.

  13. Item 4: the contribution from central government to offset the amount of the Secretary of State's estimate of income foregone as a result of transitional arrangements established by regulations under section 58 of the Local Government Finance Act 1988 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 70W.

  Town and Country Planning (Use Classes Order)
  The Minister for Housing and Planning (Keith Hill)
  In January 2002, the Government issued a consultation document on possible changes to the Town and Country Planning Use Classes Order. Responses were to be received by 24 April 2002. We received over 2000 responses, which the Office of the Deputy Prime Minister has since been considering.

  `A' USE CLASS

  The consultation document proposed amalgamating the Al and A2 Use Classes. This would have resulted in a broad Use Class, comprising of shops and premises in the financial and professional services sector. However, response from a range of sectors in the marketplace expressed anxiety and further research suggested that this proposal may not prove beneficial for business growth and would on the whole do more harm than good. As a consequence, the Government will not be taking this proposal forward, the Al and A2 Use Classes will remain separate.

  However, the Government will be making a number of amendments to the A 1 Use Class to bring it up to date and ensure that it reflects Government policy on town centres. These are:
  Internet cafes will be classified as an A1 use;
  Warehouse clubs will be taken out of the Use Classes Order, thus becoming sui generis;
  Motor vehicle showrooms will no longer enjoy permitted development rights for a change-of-use to any Al use.
  There will be no other changes to the Al or A2 Use Classes.

  The current A3 Use Class includes cafes, restaurants, pubs, bars, and takeaways. The consultation revealed that there is widespread concern that such a broad classification, which allows change of use from restaurants to pubs without the need for planning permission, contributes to the increase in the number of licensed premises. On 4 March this year, the hon. Member for Harrow East, Mr McNulty made a statement to the House announcing the Government had considered these representations carefully and proposed to put pubs and bars into a separate class.

  Although restaurants and cafes will retain their A3 classification, this class will be modified to omit the reference to the sale of hot food for consumption off the premises. Class A3 will therefore be restricted to restaurant or cafe type uses. A change of use to Al or A2 Use Classes will be permitted but all other changes of use will require planning permission. Pubs and bars will be classified under a new Use Class A4.
  10WS
  Takeaways will be classified under a new Use Class A5 due to the high level of concern expressed during the consultation about the specific impacts on amenity caused by such businesses and their customers. Both A4 and A5 Use Classes will be permitted a change of use to Al, A2 or A3 classification. Any other proposed changes of use will require planning permission.

  We do not propose to make any amendments to the current B Use Classes.

  Neither do we propose to make changes to the current C Use Classes.

  We propose to make one change to the current D Use Class, an additional Use Class D3: Late Night Leisure. Most existing late night uses are already covered by existing classes, however nightclubs do not have a clear classification within the current Use Classes Order, and the impact on amenity of nightclubs is distinct and different from other uses. We will, therefore introduce a new Use Class D3 will be the classification for nightclubs. Planning permission will be required for any change of use from or to a D3 classification.

  A statutory instrument giving effect to these changes will be made in due course.

  The order will be made under section 55(2)(f) of the Town & Country Planning Act 1990 and it is therefore not subject to the Parliamentary procedures set out in section 333 of the Act.

TREASURY

  Departmental Expenditure Limit
  The Financial Secretary to the Treasury (Ruth Kelly)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, HM Treasury DEL will be decreased by £3,576,000 from £212,025,000 to £208,449,000 and the administration costs limits will be increased by £2,525,000 from £137,063,000 to £139,588,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  -3,576,000

  178,732,000

  31,104,000

  209.836,000

  Capital

  0

  7,668,000

  0

  7,668,000

  Depreciation*

  0

  -9,055,000

  0

  -9,055,000

  Total

  -3,576,000

  177,345,000

  31,104,000

  208,449,000

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
  11WS
  The change in the resource element of the DEL arises from:
  an increase in total Treasury administrative costs of £2,525,000 resulting from:
  a partial draw down of eyf of £3,700,000 for the central Treasury, this increases voted central Treasury administration spend to the planned level published in the 2002–03 Departmental Report;
  a partial draw down of eyf of £1,500,000 for DMO;
  a transfer of £18,000 to the Cabinet Office for the transfer of the honours and dignities function;
  an increase in AinA of £1,000,000 from secondments with matching spend;
  a switch of £2,600,000 from OGC administration costs to OGC programme spend;
  a transfer of £58,000 from OGC to ODPM, for the Ordnance Survey pan government agreement, this switch was not included in the Winter Supplementary as it would have produced a negative RfR;
  an increase in AinA of £999,000 from OGC consultancies with £1,000,000 spend, giving a token £1,000 increase;
  a partial draw down of programme eyf of £300,000 for Budget documentation;
  a reduction in HM Treasury programme cost of capital of £7,758,000;
  funding of £350,000 programme spend from the Invest to Save Budget for a project on banking;
  a net transfer of £990,000 programme costs, for the honours and dignities function, to the Cabinet Office;
  an increase in OGC programme spend of £2,600,000 resulting from the switch from administration costs mentioned above;
  an increase in DEL CFERs of £603,000

  Departmental Expenditure Limit
  The Paymaster General (Dawn Primarolo)
  Subject to Parliamentary approval of the necessary Supplementary Estimate, the Inland Revenue Departmental Expenditure Limit will be increased by £147,821,000 from £3,079,864,000 to £3,227,685,000 and the administration costs limit will be increased by £102,094,000 from £2,932,555,000 to £3,034,649,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  (£000s)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  103,250

  2,669,864

  350,440

  3.020,304

  Capital

  44.571

  182,381

  25,000

  207,381

  Depreciation*

  -2,097

  -158,564

  -

  -158,564

  Total

  145,724

  2,693,681

  375,440

  3,069,121

  * Depreciation which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from the draw down of £103,246,000 administration costs EYF; draw down of £36,000 allocated funds from the Evidence Based Policy Fund and a net reduction in the forecast asset figure of £32,000.
  12WS
  The change in the capital element of the DEL arises from the draw down of capital EYF and other resources EYF, totalling £44,031,000 as set out in the Public expenditure Outturn White Paper (CMS884), and an increase of £540,000 to VOA costs for the book value of assets sold.

  Departmental Expenditure Limit
  The Economic Secretary to the Treasury (John Healey)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the H M Customs and Excise DEL will be increased by £69,803,000, from £1,221,392,000 to £1,291,195,000 and the administration costs limits will be increased by £58,986,000, from £1,073,736,000 to £1,132,722,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  69,803,000

  1,208,359,000

  -

  1,208,359,000

  Capital

  -

  81,836,000

  1,000,000

  82,836,000

  Depreciation*

  -

  -52,980,000

  -

  -52,980,000

  Total

  69,803,000

  1,237,215,000

  1,000,000

  1,238,215,000

  * Depreciation, which forms part of resource DEL. is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from:
  administration costs changes resulting from the take up of DEL end year flexibility of £56,563,000 as set out in the Public Expenditure Outturn White Paper (Cm 5884); a transfer of £2,500,000 from capital investment to administration costs to meet Lorry Road User Charging costs; a transfer of £77,000 to the Rural Payment Agency in respect of VAT recipe verifications; a transfer of £8,500,000 from non-voted Departmental Unallocated Provision in resource DEL to voted administration costs in resource DEL; and
  programme expenditure changes in respect of the take-up of DEL end-year flexibility of £5,907,000 as set out in the Public Expenditure Outturn White Paper (Cm 5884): a transfer of £4,000,000 from DEFRA for work undertaken in respect of the illegal importation of Products of Animal Origin; a transfer of £154,000 from the Cabinet Office to cover the cost of a transferred asset; a transfer of £1,000,000 from capital investment to programme expenditure to meet Lorry Road User Charging costs; and a transfer of £244,000 to the Office of the Deputy Prime Minister in accordance with the Ordnance Survey Pan Government Agreement.

  As a result of the specified resource DEL changes mentioned in the above paragraph, the administration costs limit has increased by £58,986,000.

  Departmental Expenditure Limit
  The Financial Secretary to the Treasury (Ruth Kelly)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office for National Statistics DEL will be increased by £3,863,000 from £141,651,000 to £145,514,000 and the administration
  13WS
  costs limit will be increased by £863,000 from £138,960,000 to £139,823,000. Within the DEL change. the impact on resources and capital are as set out in the following table:

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  863

  140,181

  -

  140,181

  Capital

  3,000

  19,170

  -

  19,170

  Depreciation*

  -

  -13,837

  -

  -13,837

  Total

  3,863

  145,514

  -

  145,514

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from the draw down of £1,500,000 resource from the Invest to Save Budget to fund the Citizen Information Project. This is partially offset by a transfer of £637,000 in total to other government departments in relation to work to develop the Neighbourhood Statistics programme. The transfers comprise £281,000 to the Home Office, £198,000 to the Department for Education and Skills, £94,000 to the Department for transport, £59,000 to the Department of Health and £5,000 to the

  £

  Resources

  Capital

  DfEs

  Change

  New DEL

  Of which: Voted

  Non-voted

  Change

  New DEL

  Of which: Voted

  Non-voted

  RfRl

  790,835

  21,885,292

  7,781,032

  14,104,260

  71,775

  3,338,670

  2,230,909

  1,107,761

  RfR2

  -23,163

  480,13

  503,294

  -23,163

  0

  27,625

  27,625

  0

  RfR3

  13

  200,013

  200,000

  13

  51

  51

  0

  51

  OFSTED

  418

  207,418

  207,418

  0

  0

  2,900

  2,900

  0

  Sub Total

  768,103

  22,772,854

  8,691,744

  14,081,110

  71,826

  3,369,246

  2,261,434

  1,107,812

  Depreciation*

  -4,472

  -46,988

  -11,291

  -35,697

  Total

  763,631

  22,725,866

  8,680,453

  14,045,413

  71,826

  3,369,246

  2,261,434

  1,107,812

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  Within the Administration Cost limits changes, the impact is set out in the following table:

  £000

  DfES

  Original

  Change

  Revised

  DfES (RfR1)

  200,744

  +6,380

  207,124

  Sure Start (RfR2)

  7,999

  +1,137

  9,136

  Children"s Fund (RfR3)

  4,400

  4,400

  OFSTED

  30,000

  30,000

  Total

  243,143

  +7,517

  250,660

  The change in the resource element of the DEL of £768, 103,000 arises from £683, 160,000 increase in the voted element if the resource DEL and an increase of £84,943,000 in the non-voted element of the resource DEL.

  VOTED RESOURCE DEL

  The £683, 160,000 increase in the voted element of the resource DEL arises for RfR1 from the Machinery of Government change of £648,227,000 (Department of Health £634,557,000; Home Office £7,447,000 and Department for Constitutional Affairs £6,223,000); the net transfer in from the Department for Culture, Media
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  Depcartment for Environment, Food and Rural Affairs. The Administration costs limit will be increased by £863,000 from £138,960,000 to £139,823,000

  The change in the capital element of the DEL arises from the partial take up of DEL end year flexibility of £3,000,000 capital expenditure as set out in the Public Expenditure Outturn White Paper (Cm 5884).

EDUCATION AND SKILLS

  Departmental Expenditure Limit
  The Secretary of State for Education and Skills (Mr. Charles Clarke)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Education and Skills DEL (including the Office for Her Majesty's Chief Inspector of Schools (OFSTED) which has a separate Estimate) will be increased by £839,929,000 from £25,302,171,000 to £26,142,100,000 and the administration costs limits will be increased by £7,517.000 from £243,143,000 to £250,660,000.

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

  and Sport of £35,920,000 for the School Sports Co-ordinator Programme; the net transfer in from the Department of Health of £4,258,0000 for Standards Fund for Health; the net transfer in from the Home Office of £3,397,000 for Positive Activities for Young People, for Adult Basic Skills and for the Community Champions Programme; the transfer in from the Office for National Statistics of £198,000 for the Neighbourhood Statistics Programme; the transfer in from the Department of Trade and Industry of £ 108,000 for the Mutual Recognition of Qualifications Programme and the transfer in of £2,300,000 from RfR2 Sure Start for SEN Tribunal Early Support Pilot projects and Adult Basic Skills; the net transfer to the Department for Work and Pensions of £12,586,000 for Basic Skills programme through Jobcentre Plus and for the Disability Rights Commission; the net transfer to the Office of the Deputy Prime Minister of £2,057,000 for the Regional Co-ordination Unit support; the take up of existing provision of £3,140,000 for the Parenting Fund programme and the ex-TEC property provision; and the take up of Evidence Based Policy Funding of £65,000 for understanding the impact of child poverty and progression routes; the transfer to the Office of Her Majesty's Chief Inspector of Schools in England (OFSTED) of £228,000 for Specialist Schools,

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  Evaluation of Training in Schools and for the Independent State Schools Partnership, which is departmental DEL neutral, movement of £190,000 (OFSTED inspection of FE Training) from non-voted to voted DEL is departmental DEL neutral.

  NON-VOTED RESOURCE DEL

  The £84,943,000 increase in the non-voted element of the resource DEL arises from a £108,093,000 increase in RfRI from the Machinery of Government change of £94,833,000 for the Children and Family Court Advisory and Support Service (CAFCASS) Non departmental public body; the transfer in from the Home Office of £7,000,000 for the Higher Education Funding Council for England to support the Active Community Fund project; the transfer in from the Department for Work and Pensions of £5,750,000 for the Adult Learning Inspectorate to inspect Jobcentre Plus training providers; the transfer in of £1,000,000 from RfR2 Sure Start for the Learning Skills Council for the delivery of FE childcare places; the transfer out of £300,000 from the Higher Education Funding Council for England to the Department of Health for Clinician Awards; the transfer out from the Adult Learning Inspectorate to Office of Her Majesty's Chief Inspector of Schools in England of £190,000 to inspect FE training in Higher Education Institutes which is departmental DEL neutral.

  The £23,163,000 decrease in RfR2 arises from the £23,300,000 transfer to RfRI for the SEN Tribunal Early Support Pilot projects, for Adult Basic Skills and for the delivery of FE childcare places and the transfer in of £137,000 from the Department for Work and Pensions for the ongoing costs of the childcare team.

  The £13,000 increase in RfR3 arises from the net transfer out of £160,000 to the Home Office for citizenship survey project; the transfer out of E30,000 to the Department for Work and Pensions for the family and children survey and the increase from the drawdown of Invest to Save Budget of £203,000 for the Children's Centre project aiming to improve the quality of partners existing services.

  ADMINISTRATION COST LIMITS

  The £7,517,000 increase in the Administration Cost limit arises from a £6,380,000 increase in the Administration Cost limit for RfRI from the Machinery of Government changes of £6,458,000 (Department of Health £4,878,000; Department for Constitutional Affairs £1,070,000 and Home Office £510,000); the transfer in of £860,000 from the Department for Work and Pensions for Employment Service contributions to shared services and for support of the Detached National Experts; the transfer in of £198,000 from the Office for National Statistics for the Neighbourhood Statistics programme; the transfer in of £108,000 from the Department of Trade and Industry for the Mutual Recognition of Qualifications programme; the net transfer out of £2,157,000 to the Office of the Deputy Prime Minister for the Regional Co-ordination Unit support and the programme to administrative expenditure reclassification of £913,000 for education in Prisons and Custodial institutions.
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  The £1,137,000 increase in the Administration Cost limit for RfR2 arises from the reclassification of £1,000,000 programme to administrative expenditure; the transfer in of £137,000 from the Department for Work and Pensions for the ongoing costs of the Childcare team.

  CAPITAL DEL

  The change in the capital element of the DEL of £71,826,000 arises from a £62,473,000 increase in the voted element of the capital DEL and an increase of £9,353,000 in the non-voted element of the capital DEL.

  VOTED CAPITAL DEL

  The £62,473,000 increase to the voted element of the Capital DEL arises from an increase for R FRI from an in year draw down of £26,750,000 to fund the Capital Modernisation Fund projects through the Standards Fund; from the £20,000,000 transfer in from RfR2 Sure Start for Nursery Education grants; from the Machinery of Government changes of £ 15,723,000 from the Department of Health (£45,000) for IT and furniture; (£9,500,000) for Capital Modernisation Fund Children Services and (£6,178,000) for Secure Accommodation.

  NON-VOTED CAPITAL DEL

  The £9,353,000 increase to the non-voted element of Capital DEL arises from an increase for R FRI of £9,302,000 for the Machinery of Government changes from the Department of Health for Credit Approvals for Personal Social Services. An increase to the non-voted element of Capital DEL in RFR3 for the take up of £51,000 from the Invest to Save Budget for the Children's Centre project aiming to improve the quality of partners existing services.

PRIME MINISTER

  Departmental Expenditure Limit
  The Prime Minister (Mr. Tony Blair)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Security and Intelligence Agencies' DEL will be increased by £39,176,000 from £1,458,270,000 to £1,497,446,000 and the administration costs limits will be increased by £7,949,000 from £558,375,000 to £566,324,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  35,161,000

  11,105,287,000

  11,750,000

  1,117,037,000

  Capital

  4,015,000

  516,009,000

  5,000,000

  521,009,000

  Depreciation*

  -

  -140,600,000

  -

  -140,600,000

  Total

  39,176,000

  1,480,696,000

  16,750,000

  1,497,446,000

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from:
  the take up of £10, 875,000 for Serious Crime funding. This was allocated to the Home Office at SR2000;
  a claim on the Reserve of £21,300,000 for work in Iraq;

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  the take up of End of Year Flexibility of £3,000,000;
  a transfer of £154,000 to Her Majesty's Customs and Excise (HMCE) for a building which is solely used by HMCE staff;
  a switch from capital to resource of £ 145,000;
  a decrease of £5,000 resource due to a reduction of £5,000 in the forecast loss on sale of an asset. This is a non-cash item;
  a transfer from non-voted DEL to voted DEL of £2,000,000;
  a further increase in resource of £5,015,000. This is offset by an increase of £5,015,000 Operating Appropriations in Aid.

  The change in the capital element of the DEL arises from:
  a claim on the reserve of £3,700,000 for work in Iraq;
  a transfer of £460,000 from the Cabinet Office;
  a switch from capital to resource of £145,000;
  a further increase in Capital of £5,000. This is offset by an increase in non-operating appropriations in aid of £5,000.

CULTURE, MEDIA AND SPORT

  Departmental Expenditure Limit
  The Secretary of State for Culture, Media and Sport (Tessa Jowell)
  Subject to Parliamentary approval of the necessary supplementary estimate, the Department for Culture, Media and Sport DEL will be increased by £144,665,000 from £1,401,271,000 to £1,545,936,000 and the administration costs limits will be increased by £3,005,000 from £44,182,000 to £47,187,000.

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

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  24,831,000

  195,840,000

  1,229,799,000

  1,425,639,000

  Capital

  119,834,000

  109,551,000

  98,054,000

  207,605,000

  Depreciation*

  0

  -3,555,000

  83,753,000

  -87,308,000

  Total

  144,665,000

  301.386,000

  1,244,100,000

  1,545,936,000

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from transfers to the Office of the Deputy Prime Minister of £125,000 toward costs of reimbursing the Ordnance Survey under the Pan Government Agreement; a transfer from the Department for Education and Skills of £1,250,000 toward the costs of strategic commissioning of educational initiatives in museums and galleries and £130,000 for funding of the Club Links sporting programme; transfers to the Department for Education and Skills of £37,000,000 for funding of the School Sports Co-ordinator programme and £300,000 for funding of the schoolteachers' coaching programme; transfers from the Home Office of
  18WS
  £2,000,000 for match funding of the Step into Sport volunteer initiative and £134,000 for match funding of the Public Library Volunteer Scheme; and £104,794,000 other Resource DEL to fund ongoing programmes.

  The increase in the Department's administration costs limit arises from the transfer of £20,000 administration costs from the Office of the Deputy Prime Minister toward the costs of local public service agreements and transfer of £762,000 administration costs to the Office of the Deputy Prime Minister toward the administration costs of Government Offices; and take up of £3,747,000 of administration costs end year flexibility as set out in the Public Expenditure Outturn White Paper (Cm 5884).

  The change in the capital element of the DEL arises from take up of end year flexibility as set out in the Public Expenditure Outturn White Paper (Cm 5884) of £5,000,000 for further development of Culture Online; £3,256,000 for the royal parks and £62,521,000 other Capital DEL to fund ongoing programmes.

  The increases will be offset by inter-departmental transfers and drawdown of end year flexibility entitlement and will not therefore add to the planned total of public expenditure.

  Tote
  The Minister for Sport and Tourism (Mr. Richard Caborn)
  The Government remains committed to the sale of the Tote, and we plan to bring forward the necessary legislative proposals very shortly.

  As part of the preparations for the sale, the Government has had to consider whether the Tote's current exclusive right to offer pool betting on British horseracing should continue once it has been transferred into the private sector. We have concluded that it will be in the public interest to open up the pool betting market to effective competition, but that a reasonable preparatory period is necessary in order to safeguard the policy aims underlying the sale.

  The Government has therefore decided that if our plans to sell the Tote to a racing consortium proceed, then the current intention is to issue the Tote's successor company with an exclusive licence to operate horserace pool betting on British racing for seven years.

  This licence will not be extended and at the end of that period there will be a new regulatory regime that will allow other operators to provide pool betting as well. We believe that this proposal provides necessary certainty for all concerned.

SOLICITOR-GENERAL

  Departmental Expenditure Limit
  The Solicitor-General (Ms Harriet Harman)
  Subject to Parliamentary approval of any necessary supplementary estimates, the Attorney General's DEL will be increased by £81,807,000 from £471,797,000 to £553,604,000 and the Administration Costs Limit will
  19WS
  be increased by £78,607,000 from £350,984,000 to £429,791,000. Within the DEL change, the impact on resources and capital are set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  81,807,000

  546,604,000

  7,000,000

  553,604,000

  Capital

  700,000

  15,300,000

  0

  15,300,000

  Depreciation*

  -100,000

  -4,573,000

  0

  4,573,000

  Total

  82,407,000

  557,331,000

  7,000,000

  564,331,000

  * Depreciation is included in both the Resource and Capital DEL figures so it must be removed to arrive at the correct figure for total DEL.

  The Crown Prosecution Service's element of the Attorney General's DEL will be increased by £76,367,000 from £435,294,000 to £511,661,000 and the Administration Costs Limit will be increased by £76,367,000 from £325,207,000 to £401,574,000.

  The increase of £76,143,000 in the resource element of the DEL is from the Criminal Justice Reserve to fund the CPS's core business so that it can continue contributing to meeting criminal justice performance targets.

  The increase of £200,000 arises from a transfer from the Home Office to support the six-month extension to the Visual Recording of Suspects' pilots and the increase of £24,000 is from the Department of Constitutional Affairs (DCA) for the Case Preparation Project pilots.

  The Capital Modernisation Fund provided £1,800,000 in 2003–04 to enable the CPS to develop a Public Key Infrastructure (PKI) that would support secure e-mail and data transfer with other CJS organisations: and barristers and solicitors in the private sector. During the planning stage, an alternative simpler solution was identified and tested and it is this initiative that will be taken forward by Criminal Justice Information Technology (CJIT). CJIT have indicated that they do not require the funding to be transferred and consequently the decrease in the capital element of the DEL arises from the CPS returning £1,800,000 capital to the Capital Modernisation Fund.

  The Serious Fraud Office's (SFO) DEL will increase by £5,440,000 from £23,410,000 to £28,850,000 and the Administration Costs Limit will increase by £2,240,000 from £16,235,000 to £18,475,000.

  The increase in the resource element of the DEL arises from additional costs relating to two blockbuster fraud cases; £2,240,000 relates to increased administration costs and £3,200,000 relates to programme costs— mainly investigation and prosecution costs.

  The change in the capital element of the SFO DEL arises from a £450,000 increase in I.T. hardware spending, which relates to one of the blockbuster cases. These changes in DEL are supported by a claim on the DEL Reserve. This was agreed due to these cases being considered different from normal SFO cases in terms of their size and complexity and because of the strong public interest in pursuing them.

  There is no change in the resource element of the DEL for the Treasury Solicitors' Department (TSOL). The increase in capital of £2,050,000 from £3,200,000 to £5,250,000 arises from major areas of capital
  20WS
  expenditure relating to the implementation of new systems and the upgrading of the Department's I.T. infrastructure. The new major systems include a practice and case management system, (which enables the Department to more effectively manage and monitor its casework), a new electronic records and electronic document management system and, also, an upgrade to the Department's financial systems.

  There is no increase in the TSOL's administration cost limit.

CABINET OFFICE

  Departmental Expenditure Limit
  The Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster (Mr. Douglas Alexander)
  Subject to Parliamentary approval of any necessary supplementary estimate, the Cabinet Office DEL will be increased by £11,446,000 from £299,843,000 to £311,289,000 and the gross administration costs limits will be increased by £10,243,000 from £213,490,000 to £223,733,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  £000

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  11,133

  276,115

  0

  276,115

  Capital

  313

  85,328

  0

  85,328

  Depreciation*

  0

  -50,154

  0

  -50,154

  Total

  11,446

  311,289

  0

  311,289

  * Depreciation, which forms part of resource DEL. is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from additions from the DEL reserve of £8,600,000 to support core departmental activities, additions of £2,206,000 from the Policy Innovation Fund for the newly formed shareholder executive and net transfers from other government departments of £327,000.

  The change in the capital element of the DEL arises from additions of £23,000 from the Policy Innovation Fund for the newly formed Shareholder Executive and net transfers from other departments of £290,000.

HEALTH

  Disabled People (Annual Report)
  The Parliamentary Under-Secretary of State for Health (Dr. Stephen Ladyman)
  The annual report for 2002 is being published today and copies have been placed in the Library. The report covers research and development work carried out by or on behalf of any Government Department in relation to equipment that might increase the range of activities and independence or well being of disabled people.

  The current report places such research in the context of national service frameworks and the Valuing People White Paper, and outlines the role of assistive technology

  21WS
  in making independent living easier for older people and people with disabilities. The report describes the wide range of Government funded projects supporting the development, introduction and evaluation of assistive technology.

  Departmental Expenditure Limit
  The Secretary of State for Health (Dr. John Reid)
  Subject to Parliamentary approval of the necessary Supplementary Estimate the Department of Health and the Food Standards Agency Departmental Expenditure Limits (DELs) will be decreased by

  £million

  New DEL

  Change

  Voted

  Non-voted

  Total

  Department of Health

  Resource DEL

  39,817

  63,070.172

  -141.395

  62,928.777

  Capital DEL

  -344.217

  1,214.994

  1,439.442

  2,654.436

  Total Department of Health DEL

  -304.400

  64,285.166

  1,298.047

  65,583.213

  Depreciation*

  -1.752

  -352.648

  -44.369

  -397.017

  Total Department of Health

  -306.152

  63,932.518

  1,253.678

  65,186.196

  Food Standards Agency

  Resources

  16,840

  136.368

  0

  136.368

  Capital

  0.012

  2.659

  0

  2.659

  Total Food Standards Agency DEL

  16.852

  139.027

  0

  139.027

  Depreciation*

  0

  -2.004

  0

  -2.004

  Total Food Standards Agency

  16.852

  137.023

  0

  137.023

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the departmental expenditure limit for the Department of Health arises from: take up of End Year Flexibility (EYF) £349.632 million as set out in table 6 of the public expenditure 2002–03 provisional outturn white paper Cm 5884 published in July 2003; a transfer from the capital DEL £318 million; additions from the invest to save budget £0.803 million; net transfers from the Home Office of £7.369 million for drug treatment and care and match funded social care projects, offset by contributions to the Home Office invest to save substance misuse project; to the Scottish Executive £-2.565 million (£0.067 million administration cost limit) for out of area treatments, offset by a contribution for the high security infectious diseases unit and national screening committee costs; transfer to the Department for Education and Skills £-637.965 million (f-4.976 million administration cost limit) mainly for the machinery of Government change for child care policy; a transfer to Department of Trade and Industry £-0.056 for a contribution to review body costs; a transfer from Office of the Deputy Prime Minister £0.154 million (£0.162 million administration cost limit) mainly for local government public service agreements; a transfer from Office for National Statistics £0.059 million (administration cost limit) for a neighbourhood survey and a transfer from Department for Work and Pensions £4.386 million for a contribution the residential allowance grant.

  The change in the capital element of the Department Expenditure Limit for the Department of Health arises from: a transfer to the resource DEL £-318 million; additions from the invest to save budget £0.191 million; a transfer to the Department for Education and Skills £-25.575 million for the machinery of government
  22WS
  £287,548,000 from £66,009,788,000 to £65,722,240,000 and the Administration Cost Limits (ACL) decreased by £10,377,000 from £349,302,000 to £338,925,000.

  The Department of Health DEL will be decreased by £304,400,000 from £65,887,613.000 to £65,583,213,000 and the ACL will reduced by £15,229,000 from £312,677,000 to £297,448,000. The Food Standards Agency DEL is increased by £16,852,000 from £122,175,000 to £139,027,000 and the ACL will increase by £4,852,000 from £36,625,000 to £41,477,000. The impact on resource and capital are set out in the following table.

  change for child care policy; a transfer to Cabinet Office £-0.750 million for development of a website and a transfer to Home Office £-0.083 million for a contribution to the invest to save budget.

  The changes to the Food Standards Agency resource element of the Departmental Expenditure Limit arise from: a claim for end year flexibility of £16,840,000 (£13,872,000 programme and £1,468,000 administration costs) to fund existing 2003–04 pressures; to incorporate a transfer of £1,500,000 from the Department for Environment, Food and Rural Affairs (Defra) to cover the cost of additional illegal import enforcement and inspection work; to correctly record the split of FSA income between programme and administration income; and to transfer £3,419,000 from the FSA to the Meat Hygiene Service, an executive agency of the FSA.

  The Department of Health's administration cost limit has reduced by £-15.229 million from £312.677 million to £297.448 million as detailed above and by a transfer of £-10.541 million to programme costs. The Food Standards Agency (FSA) administration cost limit has increased by £4.852 million from £36.625 million to £41.477 million as a result of incorporating administration cost EYF and correctly classifying FSA income.

TRANSPORT

  Departmental Expenditure Limit
  The Secretary of State for Transport (Mr. Alistair Darling)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Transport departmental expenditure limit (DEL)
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  for 2003–04 will be increased by £299,876,000 from £10,342,932,000 to £10,642,808,000 and the administration costs limits will be increased by £22,838,000 from £356,423,000 to £379,261,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  312,102

  4,580,715

  3,073,981

  7,654,696

  Capital

  -12,226

  1,816,823

  1,469,442

  3,286,265

  Depreciation*

  -

  -298,153

  -

  -298,153

  Total

  299,876

  6,112,985

  4,529,823

  10,642,808

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the voted resource element of the DEL arises from:

  (i) take up of £182,000,000 reserve claim for London Underground to reflect the carry over of unspent grant from 2002–03, arising from delays in completing the London Underground Public Private Partnership;

  (ii) take up of £79,691,000 end year flexibility, comprising:

  (a) £18,603,000 for expenditure by the Highways Agency consisting of £14,803,000 programme and £3,800,000 administration costs;

  (b) £8,400,000 for expenditure by London Underground on Canary Wharf agreement, contributions to Wembley Park and outstanding Jubilee Line contractors costs partly met by the take up of the reserve claim and internal savings;

  (c) £5,317,000 for expenditure on water freight grants;

  (d) £4,585,000 for expenditure by the Vehicle and Operator Services Agency;

  (e) £4,359,000 for expenditure on railways, including consultancy expenditure and, in particular, financial advice on Network Rail securitisation and cross channel railways issues;

  (f) £4,467,000 for expenditure by the Maritime and Coastguard Agency consisting of £3,500,000 programme and £967,000 administration costs;

  (g) £3,381,000 for expenditure resulting from the extension of the Air Transport White Paper timetable following judicial review that Gatwick options should be considered as part of the South East airport consultation;

  (h) £1,137,000 for expenditure for the Cycling Fund project;

  (i) £129,000 for recruitment and retention and other front line costs in the Marine Accident Investigation Branch;

  (j) £4,476,000 for Transport Security costs;

  (k) £500,000 for increased staff and building rental costs for the Rail Accident Investigation Branch;

  (l) £17,599,000 (administration costs) for expenditure by the Driver and Vehicle Licensing Agency consisting of £11,570,000 for the Motor Vehicle Registration Implementation Board and £6,029,000 for Electronic Service Delivery to provide on-line services to customers;

  (m) £6,738,000 (administration costs) for expenditure by the Department for Transport; and

  (iii) a net transfer of £5,089,000 to other government departments, comprising:

  (a) £100,000 from the Foreign and Commonwealth Office for costs associated with the setting-up of a Register of Shipping for certain Caribbean Overseas Territories;

  24WS

  (b) £32,000 from the Department for Trade and Industry for the enforcement of working time directives;

  (c) £94,000 (administration costs) from the Office for National Statistics for Neighbourhood Renewal Unit statistics;

  (d) £75,000 (administration costs) from the Office of the Deputy Prime Minister for local Government Public Service Agreement costs;

  (e) £75,000 (administration costs) from the Office of the Deputy Prime Minister for Honours Secretariat and Equality and Diversity Unit costs;

  (f) £700,000 to the Office of the Deputy Prime Minister for the new Horizons programme;

  (g) £1,210,000 (administration costs) to the Office of the Deputy Prime Minister for Government Offices;

  (h) £155,000 (administration costs) to the Office of the Deputy Prime Minister for London Transport agenda;

  (i) £1,400,000 to the Office of the Deputy Prime Minister as part of the pan-government Ordnance survey agreement; and

  (j) £2,000,000 (administration costs) to the Department for Works and Pensions to assist the Health and Safety Executive to implement the recommendations of the Cullen Inquiry.

  (iv) a transfer of £13,699,000 from the voted capital element of the DEL for the Driving Standards and Vehicle and Operator Services Agencies Electronic Service Delivery project.

  (v) an increase in receipts of £23,025,000 comprising;

  (a) £2,283,000, reclassification of interest payments from Consolidated Funds Extra Receipts to Appropriationsin-Aid;

  (b) £7,142,000 Rail track Administrators fees receipt; and

  (c) £13,600,000 transfer from the Scottish Executive to reflect a reduction in ScotRail access charges and ScotRail performance penalty payments.

  (vi) transfer from non-voted resource provision of £610,000 for shipping services.

  Within the non-voted resource element of the DEL, there has been a net increase of £50,616,000 comprising:

  (i) a take up of £44,168,000, non voted end year flexibility for the Strategic Rail Authority;

  (ii) £7,142,000 use of Rail track receipts transferred from voted resource provision to offset expenditure by the Strategic Rail Authority;

  (iii) £4,000 to the Office of the Deputy Prime Minister from the Strategic Rail Authority as part of the pan-government Ordnance Survey agreement;

  (iv) £610,000 of Consolidated Fund Extra Receipts transferred to resource voted provision;

  (v) £80,000 of receipts from ports in respect of land sales; and

  (vi) £13,600,000 use of Scottish Executive voted transfer by the Strategic Rail Authority.

  As a result of the above changes to the resource element of the DEL, and technical reclassification of £3,145,000 from administration to programme expenditure, there has been a net increase of £22,838,000 in the gross administration costs limit, from £356,423,000 to £379,261,000.
  25WS
  The decrease of £25,717,000 in the voted capital element of the DEL arises from:

  (i) a transfer of £13,699,000 to the resource element of the DEL for the Driving Standards and Vehicle and Operator Services Agencies ESD project;

  (ii) a transfer of £11,500,000 to non voted capital provision; and

  (iii) an increase in receipts of £518,000 as a result of capital repayments following the Vehicle and Operator Services Agency's deemed loan.

  The net increase of £13,491,000 in the non-voted capital element of the DEL arises from:

  (i) a transfer of £11,500,000 from voted programmes comprising:

  (a) £11,000,000 for de-trunking credit approvals;

  (b) and £500,000 for the Strategic Rail Authority; and

  (ii)a technical reclassification of £1,991,000 interest payments from Consolidated Fund Extra Receipts to Appropriation in Aid, the effect of which will be to increase capital DEL and reduce resource DEL.

  Resources

  Capital

  Change

  New DEL

  Of which: Voted

  Non-voted

  Change

  New DEL

  Of which: Voted

  Non-voted

  37,190

  1,108,064

  372,186

  735,878

  8,424

  72,852

  22,452

  50,400

  The change in the resource element of the DEL arises from the draw down of £37,190,000 End Year Flexibility.

  The extra resource costs cover a range of areas within the Department such as policing + security, central administration, political, criminal justice and prisons.

  The change in the capital element of the DEL arises from the draw down of £8,424,000 End Year Flexibility.

  The extra capital costs cover a range of areas within the Department such as policing + security, central administration, political, criminal justice and prisons.

TRADE AND INDUSTRY

  Departmental Expenditure Limit
  The Secretary of State for Northern Ireland (Mr. Paul Murphy)
  Subject to Parliamentary approval of the necessary Supplementary Estimate, the Department of Trade & Industry"s DEL will be increased by £280,631,000 from £5,016,724,000 to £5,297,355,000 and the administration costs limits will be increased by £8,329,000 from £423,366,000 to £431,695,000.

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

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  198,170

  980,210

  3,738,490

  4,718,700

  Capital

  82,461

  289,936

  288,719

  578,655

  Depreciation*

  0

  -20,841

  -93,159

  -114,000

  Total

  280,631

  1,249,305

  3,934,050

  5,183,355

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ORTHERN IRELAND

  Tourism Ireland
  The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Ian Pearson)
  Copies of Tourism Ireland Limited's Annual Report and Accounts 2002 were placed in the Library today.

  Departmental Expenditure Limit
  The Secretary of State for Northern Ireland (Mr. Paul Murphy)
  Subject to Parliamentary approval the Northern Ireland Office(NIO) will be taking a 2003/2004 Winter Supplementary Estimate. The effect this will have is to increase the NIO"s DEL by £45,614.000 from £1,135,302,000 to £1,180,916,000. There will be no change to the administration costs limit. Within the DEL change, the impact on resources and capital are as set out in the following table:

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

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

  RFR1

  (i) to transfer £2,202,000 to the Scottish Executive in respect of the End of Life Vehicles Directive;

  (ii) to transfer £1,268,000 to the Welsh Executive in respect of the End of Life Vehicles Directive;

  (iii) to reclassify £775,000 from voted expenditure to non-voted expenditure, to reflect the funding of Smart and Enterprise Grant Teams and Business link regional teams co-location costs, via Regional Development Agencies;

  (iv) to utilise £6,900,000 from the unused balance of the Department's End-Year Flexibility entitlement for Industry Forum, Fit for the Future and Partnership Activities;

  (v) to utilise £12,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for Business Link core services;

  (vi) to utilise £15,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for Rover Task Force;

  (vii) to utilise £6,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for University Innovation Centres;

  (viii) to reclassify £1,869,000 from voted expenditure to non-voted expenditure, to reflect funding of administration of Regional Selective Assistance via Regional Development Agencies;

  (ix) an increase of £77,169,000 to reflect the transfer of non-voted, non-cash RDA budgets from the ODPM;

  (x) to transfer £2,000,000 to UK Trade and Investment (formerly British Trade International) in respect of UK Global Partnerships;

  27WS

  (xi) to transfer £524,000 to the Department for Environment, Food and Rural Affairs in respect of the Red Meat Industry Forum under the Industry Forum Adaptation Initiative;

  (xii) to utilise £7,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for external financial and legal advisers in relation to British Energy;

  (xii) to implement a classification change of £ 1,929,000 to make a technical correction to the Department's Cost of Capital allocation;

  (xiv) to utilise £2,800,000 from the unused balance of the Department's End-Year Flexibility entitlement for advisers in relation to BNFL;

  (xv) to transfer £32,000 to the Department of Transport for Enforcement of the Working Time Directive;

  (xvi) to transfer from the Department of Health £32,000 for the Doctors and Dentists Pay Review Body and £24,000 for the Nurses and Allied Professions Pay Review Body;

  (xvii) to utilise £3,500,000 from the unused balance of the Department's End-Year Flexibility entitlement in respect of development of the MENTOR project;

  (xviii) to reclassify £2,000 from voted expenditure to non-voted expenditure and then to transfer £177,000 to the Office of the Deputy Prime Minister for the Pan Government Agreement for Supply of Ordnance Survey Data;

  (xix) to increase by £490,000 the non-voted expenditure of Postwatch and record an equivalent increase in voted receipts;

  (xx) to increase by £2,093,000 the non-voted expenditure of the Gas and Electricity Consumer Council (Energywatch) and record an equivalent increase in voted receipts;

  (xxi) an increase of £100,000 due to a reclassification in respect of non-voted accruing cost of pensions for the National Consumer Council;

  RFR2

  (i) to utilise £687,000 from the unused balance of the Department's End-Year Flexibility entitlement for OST initiatives;

  (ii) to utilise £20,126,000 from the unused balance of the Department's End-Year Flexibility entitlement for increased non-voted expenditure of the Medical Research Council;

  (iii) to utilise £3,047,000 from the unused balance of the Department's End-Year Flexibility entitlement for increased non-voted expenditure of the Council for the Central Laboratory of the Research Councils;

  (iv) to utilise £44,000,000 from the unused balance of the Department's End-Year Flexibility entitlement for the Joint Infrastructure Fund;

  (v) a reduction of £5,105,000 in the non-voted expenditure of the Science Research Councils to reflect the reclassification of 50% of EU receipts from non-Departmental AME to DEL;

  (vi) a utilisation of £835,000 from the Department's End Year Flexibility entitlement in respect of non-voted EU DEL cover for the Natural Environment Research Council.

  Also within the change to resource DEL, the changes to administration costs limit are (RfR1):

  (i) to transfer £861,000 of administration from the Office of the Deputy Prime Minister in respect of Government Offices for the Regions;

  (ii) to utilise £1,693,000 from the unused balance of the Department's End-Year Flexibility entitlement for Departmental administration;

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  (iii) to transfer £108,000 of administration to the Department of Education and Skills for Certificates of Experience and First Diploma Directive;

  (iv) to utilise £5,883,000 from the unused balance of the Department's end-year flexibility entitlement in respect of UK Trade & Investment (formerly British Trade International) administration;

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

  (i) to utilise £2,074,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement for Rover Task Force;

  (ii) to utilise £7,300,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement for University Innovation Centres;

  (iii) to utilise £24,000,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement for support for the establishment of Ofcom;

  (iv) to utilise £18,913,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement for the Regional Venture Capital Fund and Enterprise Fund Early Growth Funding;

  (v) to utilise £15,000,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement for investment aid to the Coal Industry;

  (vi) to utilise £2,737,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement in respect of implementation of the Parental Leave Regulations;

  (vii) to utilise £3,811,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement in respect of the business.gov Capital Modernisation Fund project;

  (viii) to utilise £113,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement in respect of the Employment Tribunals Service Capital Modernisation Fund project;

  (ix) to utilise £2,000,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement in respect of expenditure on accommodation and relocation;

  (x) to utilise £4,604,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement to increase non-voted expenditure of the Natural Environment Research Council;

  (xi) to utilise £1,909,000 of capital from the unused balance of the Department's End-Year Flexibility entitlement to increase non-voted expenditure of the Particle Physics and Astronomy Research Council.

  Departmental Expenditure Limit
  The Secretary of State for Trade and Industry (Ms Patricia Hewitt)
  Subject to Parliamentary approval of the necessary Supplementary Estimate, UK Trade & Investment's Resource DEL will be increased by £2,000,000 from £95,048,000 to £97,048,000. Within the DEL change, the impact on resources and capital are set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  2,000

  97,048

  0

  97,048

  Capital

  0

  1,248

  0

  1,248

  Depreciation*

  0

  -187

  0

  -187

  Total

  2,000

  98,109

  0

  98,109

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
  29WS
  The change in the resource element of the DEL arises from a transfer of resources from the Department of Trade and Industry to UK Trade & Investment of £2,000,000 in respect of the Global Partnerships programme.

DEFENCE

  Defence Science and Technology Laboratory
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The Defence Science and Technology Laboratory (Dstl) will reduce the number of sites on which it operates to three core sites: Fort Halstead in Kent, Porton Down in Wiltshire, and Portsdown West, near Portsmouth in Hampshire. Approximately 1400 Dstl staff, who are currently geographically dispersed, from Farnborough in Hampshire, Malvern in Worcestershire, and Winfrith in Dorset, as well as other minor sites, will relocate to the three core sites over the next few years. The programme is likely to be completed in 2007.

  Among the benefits that will accrue to Dstl and MOD are:
  increased technical synergy and coherence;
  improved operational effectiveness;
  better integration of teams;
  enhanced development opportunities and career prospects for staff; and,
  reduced overhead costs.

  MOD has undertaken a regional impact assessment to assess the effect on staff and local communities. This particularly supports the move of staff to Portsmouth, an area of economic deprivation. Of the options open to Dstl, the plans are most consistent with the aims of the review of public sector relocation being undertaken by Sir Michael Lyons on behalf of the Chancellor and Deputy Prime Minister, and have been approved the Treasury.

  Operation Telic Roulement
  The Secretary of State for Defence (Mr. Geoffrey Hoon)
  The Multinational Division (South-East) (MND(SE)) in Iraq was successfully instituted on 13 July and the UK now leads a 10-nation contingent in the southern Iraqi provinces of Basra, Maysan, Dhi Qar and Al Muthanna.

  As part of our routine management of the UK's land deployment we intend shortly to conduct a roulement of our forces in theatre. This will begin with an incremental replacement of HQ 3 (UK) Division with a composite headquarters for MND(SE), the staff for which will be drawn from across UK Defence and from allies. 1 Mechanised Brigade will begin to replace 20 Armoured Brigade as the foundation for the UK's military commitment inside Iraq in April 2004. We intend that the process will be complete by the end of April 2004. We expect the level of the Royal Navy and Royal Air Force presence in theatre to remain broadly stable.

  As part of this roulement forces and in line with our policy of employing the reserves as an integral component of the Armed Forces, we shall be mobilizing
  30WS
  a further tranche of around 1,100 Reservists to support operations in Iraq. We expect these personnel to deploy from mid February 2004 onwards. Although a significant mobilisation, this is both in absolute terms a smaller number than have been mobilised for previous tranches, and will constitute a smaller proportion of the service personnel deployed to theatre than previously. These Reservists will be employed in a number of roles: about a third in theatre at any one time will be deployed in the infantry role as force protection, a little under a quarter will provide reinforcement to regular infantry units deployed, about a sixth will be medical personnel and the remainder will provide a variety of specialist capabilities.

  We aim to issue the majority of call-out notices around 9 January 2004 and begin mobilisation in mid February 2004. Reservist personnel will receive at least 21 days' notice to mobilise. Mobilisation will be followed by a period of individual training to confirm basic skills, theatre specific pre-deployment training, role-specific collective training, integration into receiving units and then a short period of leave before deployment. For the majority of those called-out their deployed tour will last six months; and for most the total period of mobilisation, including post-tour leave, is expected to last between eight and nine months, though for a very small proportion it may be slightly longer.

  We intend to spend the period between now and January identifying for selection as accurately as possible those Reservists who are believed to be fit and available for deployment. As in previous practice, to ensure that we successfully mobilise the required number, we will need to issue a greater number of call-out notices than our actual in-theatre requirement.

  We will continue to keep the size and mix of forces in theatre under careful review and we can expect to make further adjustments to our force structures and undertake further mobilisations in order to ensure that we continue to have the appropriate capabilities for the tasks in hand. While we remain determined to maintain appropriate forces deployed in Iraq and the wider Gulf region for as long as is necessary, we are equally determined that no forces should remain deployed for any longer than is necessary.

  Departmental Expenditure Limit
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Ministry of Defence Departmental Expenditure Limits will be increased by £1,550,586,000 from £29,241,795, 000 to £30,792,381,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  1,220,784

  31,597,524

  375,142

  31,972,666

  Capital

  329,802

  6,455,352

  2,250

  6,457,602

  Depreciation*

  -

  -7,537,887

  -100,000

  -7,637,887

  Total

  1,550,586

  30,514,989

  277,392

  30,792,381

  31WS
  * Depreciation, which forms part of Resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from:
  The take up of the Resource end year flexibility of £80,872,000.
  An increase in RfR2 of £1,140,000,000 for military operations.
  A transfer of £275,000 to the Office of the Deputy Prime Minister as a share of Ordnance Survey costs under a pan Government agreement.
  An increase of £80,000 from the Invest to Save budget for quadrupole resonance detectors.
  An increase of £98,000 from the Invest to Save budget to introduce an alert system for pluvial flooding to complement the Environment Agency's flood warning service.
  A transfer of £9,000 from the Department of Work and Pensions as a contribution to the Veteran Agency's helpline.
  An increase in Resource Appropriations In Aid of £50,300 from an out of court settlement relating to a breach of confidentiality, which will be offset by a donation to charity of the same amount.

  The change in the capital element of the DEL arises from:
  An increase in RfR2 of £256,000,000 for military operations.
  An advance of £73,782.000 for Landing Ship Dock Auxiliary vessels as agreed in SR2000.
  An increase of £20,000 from the Invest to Save budget for quadrupole resonance detectors.

  Defence Communications Services Agency (Key Targets)
  The Minister of State, Ministry of Defence (Mr. Adam Ingram)
  Key Targets have been set for the Chief Executive of the Defence Communications and Services Agency (DCSA) for financial year 2003-04. The targets build on progress already made and are as follows:

  KT1 SERVICE ASSURANCE
  To meet an average of 99 per cent for measured services against agreed performance targets.

  KT2 SERVICE FULFILMENT
  To commission an average of 95 per cent of new service requests on, or before, dates agreed by Customers with the DCS A.

  KT3 SERVICE RESTORATION
  To restore an average 97 per cent. of interrupted services classed as Operationally Urgent within four hours of the fault being reported to the DCSA, or within other specific periods agreed with customers and to restore Business Critical services in accordance with periods as specified in CSAs.

  KT4 SERVICE SUPPORT
  To achieve an average 90 per cent. success rate against standards in response to demands on all DCSA Operator Assistance Centres (OACs) and helpdesks facilities.

  KT5 CUSTOMER SATISFACTION
  To achieve a Customer Confidence Index of 54 in Financial Year 2003–04. Key Target measurement has changed from last year and will be achieved by the Agency 's Customer Relationship Management staff undertaking a series of
  32WS
  face-to-face interviews with DCS A customers. The information obtained from these interviews will be processed and a Customer Confidence Index (CCI) produced. If this measure is delivered it will represent an eight percent increased compared to 2002–03.

  KT6 EFFICIENCY MEASUREMENT
  To achieve an improvement in effectively by reducing the average unit cost of output by 3 per cent.

  KT7 INTRODUCTION OF NEW PROJECTS AND SERVICES
  To deliver new projects to time, cost and performance as expressed at the 90 per cent confidence level to a tolerance of 10 per cent.

  Army Training and Recruiting Agency
  The Parliamentary Under-Secretary of State for Defence (Mr. Ivor Caplin)
  The Army Training and Recruiting Agency (ATRA) currently runs a 28 week course for junior soldiers at the Army Technical Foundation College (ATFC) at Rowcroft Barracks, Arborfield. The Course is aimed at recruits to the Royal Engineers (RE), the Royal Electrical and Mechanical Engineers (REME), the Royal Signals (R Signals) and the Royal Logistics Corps (RLC).

  Amongst REME recruits especially the quality of output from the College has not been high enough. This has resulted in failure at Phase 2 specialist training by an unacceptably high number of individuals. ATRA has considered a number of ways of addressing this problem and has come to the conclusion that the best solution entails the closure of the College and the transfer of students to, principally, the Army Foundation College (AFC) at Harrogate, where a new technical training stream will be introduced. There will be other changes to the way in which junior recruits are trained within ATRA, but these will not involve closures of any other establishments.

  No final decision regarding the closure date has yet been taken. I have given approval in principle to this course of action and ATRA is undertaking a full consultation exercise with the relevant Trades Unions. This is expected to take until January 2004, at which time I will consider the outcome, come to a conclusion and advise the House accordingly.

FOREIGN AND COMMONWEALTH AFFAIRS

  Departmental Expenditure Limit
  The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Bill Rammell)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Foreign and Commonwealth Office Departmental Expenditure Limit (DEL) will be decreased by £19,000 from £1,651,679,000 to £1,651,660,000. Within the DEL change, the impact on resources is as set out in the following table:

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  -19,000

  1,432,068

  219,592

  1,0651,660

  Capital

  0

  51,289

  5,800

  57,089

  Depreciation*

  0

  -105,994

  -31,800

  -137,794

  Total

  -19,000

  1,377,363

  193,592

  1,570,955

  33WS
  * Depreciation, which forms part of Resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

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

  (i) A Public Expenditure Survey (PES) transfer to the Department of Transport of £100,000 in respect of the setting up of a Register of Shipping by the Maritime and Coastguard agency for certain Caribbean Overseas Territories.

  (ii) A PES transfer to the Department of Environment, Food and Rural Affairs of £67,000 in respect of payments due to the United Nations Convention on the Law of the Sea (UNCLOS),

  (iii) A PES transfer from the Department for International Development of £14,000 in respect of costs incurred by a British Geological Survey visit to Afghanistan,

ENVIRONMENT, FOOD AND RURAL AFFAIRS

  Large Combustion Plants Directive
  The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Ben Bradshaw)
  The Government published a consultation paper on 30 June 2003 setting out the options for implementing the Large Combustion Plants Directive (2001/80/EC) in the UK for plants first licensed before July 1987. For these plants, there is a choice between either setting emission limit values individually for each plant, or establishing a 'national plan' under which a "bubble' for each of the pollutants covered by the Directive (sulphur dioxide, nitrogen oxides and dust) could be shared between plants in the scheme.

  Consultations closed on 30 September. We received a number of detailed submissions on the consultation paper which we have been considering. No consensus has emerged from the responses to the consultation and there are strongly held views in favour of both implementation options. The choice between the options is also sensitive to other policies on which decisions will be taken in the next few months.

  The Directive requires that any national plan is submitted to the European Commission by 27 November 2003. However, we consider that further analysis is required before we can be sure which implementation approach it is in the UK interest to adopt. We are therefore submitting a national plan to the Commission at the same time as undertaking this further analysis. This will in effect keep either option open, We would withdraw the plan if this farther analysis suggested that the emission limits approach was to be preferred. A decision on whether to withdraw the national plan would be taken before spring 2004.

SCOTLAND

  Departmental Expenditure Limit
  The Secretary of State for Scotland (Mr. Alistair Darling)
  Subject to parliamentary approval of the necessary Supplementary Estimates, the Scotland 34WS
  Departmental Expenditure Limit (DEL) will be increased by £450,211,000 from £20,351,621,000 to £20,801,832,000.

  The DEL increase takes account of the following:
  the take-up of End Year Flexibility (EYE) by the Scottish Executive amounting to £391,203,000;
  an increase of £25,424,000 for Council Tax Benefit adjustments;
  an increase of £14,964,000 for Rent Rebate adjustments; and
  an increase of £9,286,000 for safety cameras.

  The DEL increase also includes the following transfers between the Scottish Executive and other Government departments, amounting to a net increase of £9,334,000. These are:
  a transfer of £30,100,000 from the Department for Transport;
  net transfers of £2,565,000 from Department of Health;
  a transfer of £2,202,000 from the Department for Trade and Industry;
  net transfers of £17,895,000 to the Department for Work and Pensions;
  net transfers of £6,952,000 to the Department for Constitutional Affairs; and
  a transfer of £686,000 to the Office of the Deputy Prime Minister.

  Administration costs provision for the Scotland Office and Office of the Advocate General is £6,552,000, with DEL provision at £6,952,000.

CONSTITUTIONAL AFFAIRS

  Asylum Legal Aid
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. David Lammy)
  Asylum legal aid costs have risen from £81.3 million in 2000£01 to £174.2 million in 2002–03. There are a number of reasons for this increase, but it remains the case that the majority of claims for asylum are refused. As we set out in our Consultation Paper of 5 June 2003, this increase in costs, coupled with concerns about the quality of some work undertaken under legal aid, and evidence of duplication of some cases, requires action from the Government to ensure that taxpayers' money is spent most effectively and efficiently.

  Following the consultation, the Government will introduce measures which will:
  introduce a financial threshold of 5 hours for the initial decision-making process, which can only be exceeded with prior authority of the LSC;
  ensure that no legal aid work is undertaken in asylum appeal cases without prior approval from the Legal Services Commission, which will set financial thresholds in individual cases which pass a merits test for legal aid;
  introduce accreditation for all lawyers and case-workers doing legally aided asylum work;
  introduce a Unique Client Number to reduce unnecessary changes of solicitor.

  The LSC will have the power to vary the financial threshold up or down for individual firms whose track record justifies this. The LSC will also continue to allow top quality firms with a good track record on appeal

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  cases to proceed without prior authority up to a set financial threshold. Any autonomy granted by the LSC will have to be earned.

  These measures will apply in England and Wales.

  THE CONSULTATION

  We outlined three proposals:
  a curb on the amount of time for which lawyers would be paid in individual cases;
  accreditation of lawyers and other case-workers to ensure quality representation;
  the introduction of a Unique Client Number to prevent unnecessary changes of solicitor.

  We received 260 responses to the Consultation Paper. The House of Commons Constitutional Affairs Committee also inquired into our proposals and reported on 31 October 2003.

  There was overwhelming support for the introduction of accreditation and the Unique File Number. There was widespread concern about the proposals to curb the amount of time for which lawyers would be paid in individual cases. Respondents also made many suggestions about where savings might be achieved and there was some criticism of Home Office systems and procedures. Officials from the Home Office, Department for Constitutional Affairs and Legal Services Commission are examining the initial decision-making stage of the asylum process, with particular regard to the role that legal aid and publicly funded practitioners play. This work may lead to further changes in the way that legal aid for asylum seekers is delivered beyond those now proposed. In particular, consideration is being given as to whether legal aid is needed at the initial stage in all cases. The Government will make a further announcement on any further changes in due course. We are very grateful for all the responses, and especially the report of the Constitutional Affairs Committee. We have considered carefully all the points which have been made.

  OUR REVISED PROPOSALS

  In our consultation paper, we proposed that there should be a cap of 5 hours' work at the initial stage, that is prior to the initial decision by the Home Office as to whether asylum should be granted. There would be higher caps for stated exceptions. We now propose that there should instead be a financial threshold for preparation time allowed for the generality of cases up to the initial decision for asylum cases. The norm for this threshold will be 5 hours. The LSC will also introduce a threshold for immigration non-asylum cases. This will normally be between 3 and 5 hours depending on the circumstances of the case. Once this threshold is reached, suppliers will only be allowed to proceed under legal aid with prior authority from the LSC. Professional disbursements and VAT will not count towards these thresholds. The LSC will introduce separate thresholds for professional disbursements which require prior authority to exceed. Extensions are only likely to be granted, on application to the LSC, in genuine and complex cases where there is a real prospect of success. The LSC propose to allow a limited number of firms, where it is confident work is to a high standard, devolved powers to self-grant to a higher figure.
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  In all but exceptional cases (unaccompanied minors; applicants going through fast-track initial decision processes; those suffering from a recognised and verifiable mental incapacity which makes it impractical to undergo an interview without support) funding for attendance by a representative at the substantive asylum interview will not be authorised. The LSC will introduce rules to ensure that in these exceptional cases where attendance at interview is authorised, this will be by the advisor in the case or the immigration supervisor, not by an agent or outdoor clerk, until accreditation is introduced.

  Before any preparatory work can be carried out under legal aid for an asylum appeal, the LSC will need to be satisfied itself that the case merits being pursued. Currently, this decision can be made by individual firms. There will therefore be no guarantee of any legally aided work being allowed at the appeals stage in individual cases. If, however, the LSC is satisfied that the appeal case merits representation, it will set a financial threshold up to which firms will be able to work before they need to seek an extension from the LSC. Thresholds would be set for individual cases depending on the facts of the case, and the experience and previous outcomes of the firm. As now, applicants will be able to seek a review of refusal of funding by the LSC for an appeal against rejection of their asylum claim, but any such review will be considered on the papers only.

  The LSC will proceed with a fixed fee of £150 plus VAT for applications for leave to appeal to the Immigration Appeal Tribunal.

  The LSC is presently finalising the details of the skills and competencies required for each of three levels of accreditation now being proposed. It will then invite the Law Society to recruit independent assessment organisations which will ensure that all advisers undergo objective tests of their competence and evaluation of a portfolio of work conducted. As set out in our original proposals, those on the most rigorous advanced level will be entitled to increased remuneration as a result of their skill and experience for work they personally conduct. This we propose to be at 5 per cent. above current rates.

  The Unique Client Number will be required to be used for all dealings between advisers and the LSC in a case once it has been issued, and will be submitted with all claims for payment once an initial decision has been made.

  In addition, the LSC will also consult over limiting choice of representative in locations where fast-track procedures are in operation to dedicated duty representatives authorised under contract. This is intended to prevent touting and poaching of clients at centres such as Oakington and Harmondsworth which currently leads to wasteful duplication of resources. The LSC will also consult over the use of experts in asylum cases, whether it is necessary to have a separate interpreter at substantive asylum interviews for the client, in those exceptional cases where funding is authorised for attendance by a representative at the substantive asylum interview and whether there should be a fixed fee for advocacy before the adjudicators in order to ensure value for money is obtained.
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  IMPLEMENTATION

  The introduction of prior authorisation by the LSC in every asylum and immigration case (with the exception of 5 hours for advice at the initial stage and any other earned autonomy granted by the LSC) will require a significant change in processes and procedure which will take some time to bed in efficiently. There will therefore be a transitional additional 2 hours at the initial stage for most firms before extensions are required from the LSC. The timetable will be as follows:
  Transitional 7 hour threshold for initial stage applies to suppliers in London on 1 March 2004.
  Transitional 7 hour threshold for initial stage applies to all other suppliers on 1 April 2004.
  5 hour threshold for initial stage applies to all suppliers in England and Wales on I May 2004.
  Authorisation from LSC required for appeals from 1 April 2004.
  The thresholds will apply to all work whether done on new or old cases started after introduction.

  Accreditation will be introduced from April 2004, and will become compulsory by April 2005. The Unique Client Number will be introduced from April 2004. The requirement to apply to the LSC for prior approval to appeal an initial Home Office decision will also apply from April 2004.

  SAVINGS

  These revised proposals are estimated to save around £30 million in 2004-05 against what we would be spending were we not to introduce prior authorisation.

  Taken together, these measures will bring asylum legal aid under effective control and cut out unnecessary expenditure. Costs will be limited, and targeted at the most deserving cases. Quality representation will be recognised and rewarded by the new accreditation scheme, and wasteful duplication of cases will be ended.

  Freedom of Information
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. Christopher Leslie)
  The Secretary of State for Constitutional Affairs has today laid before both Houses and published the Annual Report on bringing into force those provisions of the Freedom of Information Act 2000 which are not yet fully in force. The Government is committed to bringing the Freedom of Information Act fully into force in January 2005. This report details what action has been taken as well as what arrangements are being made for the coming year. Copies of the report have been placed in the Library.

  Departmental Expenditure Limit
  The Parliamentary Under-Secretary of State for Constitutional Affairs (Mr. Christopher Leslie)
  Subject to Parliamentary approval of the necessary Supplementary Estimates, the Departmental Expenditure Limit (DEL) covering the Department for Constitutional Affairs, Northern Ireland Court Service and The National Archive will be increased by £5,280,000 from £3,124,514,000 to £3,129,794,000 and the administration costs limit will 38WS
  be increased by £27,600.000 from £805,243,000 to £832,843,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  All figures are £000s.

  Change

  Voted

  Non-voted

  New DEL

  Resource

  -23,167

  1.119,370

  1,955,276

  3,074,646

  Capital

  27,051,

  117,893

  11,016

  128,909

  The change in the Department for Constitutional Affairs resource DEL is the net effect of:

  RFR1

  Take-up of end-year flexibility of £2,293,000 administration costs; a transfer of £65,504,000 resources, of which £19,534,000 is administration costs from the Home Office in relation to the Criminal Justice System reserve; a virement of £103,722,000 resources, of which £1,069,000 is administration costs to reflect payments to the Department for Education and Skills in relation to Machinery of Government; a transfer of £502,000 administration costs from the Office of the Deputy Prime Minister; a transfer of £573,000 administration costs from HM Treasury in relation to the Invest to Save Budget; net transfers of £451,000 resources from the Home Office; a transfer of £24,000 administration costs to the Crown Prosecution Service.

  RFR2

  Provision of £18,528,278,000 (resource) and £100,000 (capital) transferred from the Scotland Office to the Department for Constitutional Affairs (RfR2), resulting in a transfer of £18,527,903,000 in respect of the net cash requirement. This is for administration costs of the Scotland Office and the Office of the Advocate General, provision for the Boundary Commission for Scotland and a grant to the Scottish Consolidated Fund, as part of the machinery of government changes announced by the Prime Minister on 12 June.

  There has also been a transfer of £425,000 administration costs to the Scottish Executive.

  RFR3

  Provision of £9,306,641,000 (resource) and £766,000 (capital) transferred from the Wales Office to the Department for Constitutional Affairs (RfR3), resulting in a transfer of £9.307,313,000 in respect of the net cash requirement. This is to enable the Secretary of State for Wales to assign the administration costs of the Wales Office and grant to the National Assembly for Wales, as part of the machinery of government changes announced by the Prime Minister on 12 June.

  As a result of all changes there is an increase in Total Net Cash Requirement of £1,084,485,000.

  The change in the Northern Ireland Court Service resource DEL is the net effect of:

  A transfer of £5,000,000 administration costs into resource.

  The change in The National Archive resource DEL arises from: the take up of £1,000,000 administration costs from end year flexibility.
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  The change in the Department for Constitutional Affairs capital DEL is the net effect of:

  RFR1

  Take-up of end-year flexibility of £14,510,000 capital costs; a transfer of £9,695,000 capital costs from the Home Office in relation to the CJS Reserve; and a transfer of £111,000 capital from HM Treasury in relation to the Invest to Save Budget.

  The change in The National Archive capital DEL is the net effect of: take up of end year flexibility of £1,869,000 resources.

  The increases will be offset by inter-departmental transfers, increases to Appropriations in Aid, take up of End Year Flexibility entitlements and a charge to the DEL Reserve and will not therefore add to the planned total of public expenditure.

WORK AND PENSIONS

  Departmental Expenditure Limit
  The Minister for Work (Mr. Desmond Browne)
  Subject to Parliamentary approval of any necessary Supplementary Estimate, the Department for Work and Pensions DEL will be increased by £351,387,000 from £7,877,303,000 to £8,228,690,000 and the administration costs limits will he increased by £273,071,000 from £5,778,936,000 to £6,052,007,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

  (£000)

  New DEL

  Change

  Voted

  Non-voted

  Total

  Resource

  348,526

  6,434,129

  1,883,292

  8,317,421

  Capital

  0

  27,066

  1,602

  28,668

  Depreciation*

  2,861

  -116,685

  -714

  -117,399

  Total

  351,387

  6,344,510

  1,884,180

  8,228,690

  * Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

  The change in the resource element of the DEL arises from:
  an increase in provision of £86,000,000 (administration costs) and £222,000,000 (other current) under the End Year Flexibility Scheme;
  an increase in provision of £70,000 (administration costs) as a result of a transfer from the Office of the Deputy Prime Minister for local Public Services Agreements;
  a transfer of provision of £5,750,000 (other current) to the Department for Education and Skills for costs incurred by the Adult Learning Inspectorate on behalf of the Department for Work and Pensions;
  an increase in provision of £ 18,294,000 (grants) as a result of a transfer from the Scottish Executive for expenditure on Administration Subsidy;
  an increase in provision of £2,000,000 (administration costs) as a result of a transfer from the Department for Transport for the costs of Cullen;
  an increase in provision of £ 11,500,000 (other current) as a result of a transfer from the Department for Education and Skills in respect of Basic Skills training courses and work carried out by Job Centre Plus;
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  an increase in provision of £1,000,000 (administration costs) due to a drawdown from the Capital Modernisation Fund for the Supported Employment Programme;
  a transfer of provision of £137,000 (administration costs) to Department for Education and Skills for Sure Start;
  a transfer of provision of £4,386,000 (administration costs) to the Department of Health for the administration costs of additional financial assessments;
  a transfer of provision of £399,000 (administration costs) to the Scottish Executive for the administration costs of additional financial assessments;
  a transfer of provision of £395,000 (administration costs) to the Welsh Assembly for the administration costs of additional financial assessments;
  a transfer of provision of £9,000 (administration costs) to the Ministry of Defence for the telecom costs of the Veteran's Agency Helpline;
  an increase in provision of £1,946,000 (non budget) following a transfer from the Department for Education and Skills;
  a transfer of provision of £690,000 (administration costs) to the Department for Education and Skills in respect of Caxton House, Rent and Premises Services:
  a transfer of provision of £170,000 (administration costs) to the Department for Education and Skills in respect of the costs of Detached National Experts;
  a transfer of provision of £30,000 (administration costs) from the Department for Education and Skills in respect of the Family and Children Survey;
  a transfer of provision of £13,000 (other current) to the Home Office in respect of the costs of withdrawal of benefits research;
  an increase in provision of £17,635,000 (administration costs) for the Makinson Bonus scheme.

  Jobcentre Plus
  The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond)
  On behalf of my right hon. Friend the Secretary of State for Work and Pensions, the Benefit Fraud Inspectorate (BFI) follow-up inspection report on Jobcentre Plus' relationship with local authorities was published today and copies of the report have been placed in the Library.

  In September 2001, the BFI published its report on the then Benefits Agency's relationship with local authorities and made 49 recommendations to address weaknesses in benefits administration and counter-fraud activity, and improve closer working with local authorities. Since then the Benefits Agency has become part of Jobcentre Plus.

  Jobcentre Plus came into existence in April 2002 bringing together parts of the Benefits Agency and the whole of Employment Service. This resulted in significant changes to the organisational structure since the first BFI inspection.

  It is important that Jobcentre Plus works closely with local authorities to ensure that:
  the processing of benefit claims and their ongoing maintenance are made as simple and speedy as possible with the minimum of duplication. The fullest possible sharing of information helps ensure that customers receive the highest attainable levels of service;
  information that could lead to the identification of fraud and error is routinely shared so that joint action can be taken to eliminate overpayments;

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  the welfare of customers, and staff of local authorities and Jobcentre Plus, is protected by the sharing of good working practices and regular exchange of information.

  In 2003, BFI inspected Jobcentre Plus to determine the effectiveness of its working relationships with local authorities and see how the recommendations from the first report had been progressed by the new organisation.

  Particular improvements highlighted in the report include the recruitment of Regional Fraud and Programme Protection Managers to work closely with local authorities and the successful roll out of electronic transfer of data systems. Both local authorities and Jobcentre Plus reported this had a positive impact on the relationship.

  The BFI did find that many of the 49 recommendations from its earlier report had not been carried out. Specific areas identified for improvement
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  included training staff in liaison duties, ensuring that joint working with local authorities features sufficiently in business plans and securing better management information at a national level on joint working performance. However, the report found that there was variation in performance, with some Jobcentre Plus offices making greater effort than others in their relationships with local authorities.

  The report finds examples of good practice and some improvements since the first inspection. However, the report makes 45 recommendations to help Jobcentre Plus address the weaknesses and to further improve the working relationship with local authorities.

  Jobcentre Plus is announcing its Action Plan for dealing with the BFI's recommendations, and is to set up a Senior Steering Group, including local authority representation, to oversee the implementation of the BFI's recommendations and report progress to Ministers on a quarterly basis.