HL Deb 23 February 2004 vol 658 cc4-5WS
Lord Bach

My right honourable friend the Minister of State for Defence (Mr Adam Ingram) has made the following Written Ministerial Statement.

Subject to parliamentary approval of any necessary Supplementary Estimate, the Ministry of Defence departmental expenditure limits will be increased by £506,795,000 from £30,792,381,000 to £31,299,176,000. Within the DEL change, the impact on resources and capital are as set out in the following table:

1000s
New DEL
Change Voted Non-voted Total
Resource 342,500 31,866,919 448,247 32,315,166
Capital -35,705 6,401,972 19,925 6,421,897
Depreciation1 200,000 -7,337,887 -100,000 -7,437,887
Total 506,795 30,931,004 368,172 31,299,176

1 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 transfer of £116,550,000 from capital to resource DEL
  • An increase in RfR2 of £231,000,000 resource DEL for military operations.
  • A transfer of £5,000,000 resource DEL from FCO in respect of the Global Conflict Prevention Pool.
    • WS 5
  • A transfer of £910,000 from DfID in respect of the Conflict Prevention Pool for programmes in sub-Saharan Africa.
  • A transfer of £11,200,000 resource DEL to the DTI in support of dual-use aero-engine technology programmes.
  • A transfer of £305,000 resource DEL from the DWP to the Veterans Agency relating to a change in allowances.
  • A transfer of £120,000 resource DEL to the Single Intelligence Account relating to electricity for a shared site.
  • A transfer of £55,000 resource DEL from the Home Office in respect of the Voluntary Opportunities Matched Funding project.
  • An increase in the non-budget items of £147,541,000 arising from changes in provision values related to the change in the Treasury discount rate.
  • An increase in resource appropriations in aid of £157,579,000.

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

  • A transfer of £116,550,000 from capital DEL to resource DEL as a result of budgetary rebalancing.
  • An increase in RfR2 of £78,000,000 capital DEL for military operations.
  • A transfer of £5,500,000 capital DEL from the Home Office to MoD as payment for part of the former RAF Newton site.
  • A reduction in capital DEL of £2,655,000 as a result of repaying the funding provided from the reserve in financial year 2001–02 which was brought forward from 2003–04 for Operation Veritas urgent operational requirements.
  • An increase in non-operating appropriations in aid of £134,613,000.
  • A profit of £17,674,000 on the disposal of fixed assets.

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