HC Deb 23 February 2004 vol 418 cc7-8WS

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 £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
Change Voted New Del 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
1Depreciation, 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 million Resource DEL for military operations. A transfer of £5 million Resource DEL from FCO in respect of the Global Conflict Prevention Pool. 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 acro-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 re-balancing. An increase in RfR2 of £78 million 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 FY01/02 which was brought forward from 2003–04 for op 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.