Departmental Expenditure Limits

Tuesday 23rd November 2010 Written Statements

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

Subject to parliamentary approval of the winter supplementary estimate 2010-11, the Cabinet Office total departmental expenditure limit (DEL) will be increased by £229,588,000 from £329,499,000 to £559,087,000.

The impact on resources and capital is set out in the following table:

£’000Main Estimate DELChangesWinter Supplementary Estimate New DELVoted Non-voted Total Voted Non-voted Total Voted Non-Voted Total Resource DEL 259,942 49,196 309,138 +105,452 +100,985 +206,437 365,394 150,181 515,575 Of which: Administration Budget 171,459 10,400 181,859 +53,858 - +53,858 225,317 10,400 235,717 Capital DEL 245,887 2,000 47,887 +23,250 - +23,250 69,137 2,000 71,137 Depreciation 1 -27,526 - -27,526 -99 - -99 -27,625 - -27,625 Total DEL 278,303 51,196 329,499 +128,603 +100,985 +229,588 406,906 152,181 559,087 AME 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.2 Capital DEL includes items treated as resource in estimates and accounts but which are treated as Capital DEL in budgets.

Summary of Changes in Departmental Expenditure Limit (DEL)

The change in the resource element of DEL is an increase of £206.437 million which comprises £163.636 million for x3 Machinery of Government transfers from other Government Departments, £47.303 million of agreed claims on the Reserve, £4.290 million budget covers transfers to other Government Departments and a reduction of £0.900 million for dividends receivable from Buying Solutions and an increase of £0.688 million for purchase of goods and services relating to the Office of Government Commerce, both excluded from the Machinery of Government transfer.

The change in the capital element of DEL is an increase of £23.250 million which comprises £21.750 million Capital DEL End Year Flexibility drawdown and a claim on the Reserve for £1.500 million.

Changes in Resource DEL (RDEL)

The changes which result in a net increase in Resource DEL (RDEL) of £206,437,000 are as follows:

Agreed Claims on the Reserve £47,303,000

A Claim on the Reserve for Grassroots Grants increases Resource DEL, Net Resource and Net Cash Requirement by £18,000,000.

A Claim on the Reserve for v Match Funding increases Resource DEL, Net Resource and Net Cash Requirement by £8,828,000.

A Claim on the Reserve from the Modernisation Fund to cover estate rationalisation and early departures increases Resource DEL, Net Resource and Net Cash Requirement by £10,475,000.

A Claim on the Reserve from the Transition Fund to support civil society organisations in adapting to a changing funding environment increases Resource DEL, Net Resource and Net Cash Requirement by £10,000,000.

Machinery of Government Transfers £163,636,000

The transfer of Directgov from the Department for Work and Pensions (DWP) to the Cabinet Office increases Resource DEL and Net Resource Requirement by £28,985,000 and Net Cash Requirement by £28,886,000.

The transfer of the Office of Government Commerce and its executive agency, Buying Solutions, from HM Treasury to the Cabinet Office increases Resource DEL and Net Cash Requirement by £20,657,000, increases Resource AME by £529,000 and increases Net Resource Requirement by £21,186,000.

The transfer of responsibility for political and constitutional reform from the Ministry of Justice to the Cabinet Office increases voted Resource DEL, Net Resource and Net Cash Requirement by £11,794,000. A transfer relating to the costs of the general election 2010 increases non-voted Resource DEL by £102,200,000.

Other changes outside Machinery of Government transfer £212,000

Dividends receivable from Buying Solutions of £900,000 and an increase of £688,000 for purchase of goods and services relating to the Office of Government Commerce. These adjustments are in addition to the Machinery of Government transfer. These changes decrease Resource DEL, Net Resource and Net Cash Requirement by £212,000.

Budget Cover Transfers to other Government Departments £4,290,000

A budgetary cover transfer from the Office for Civil Society to the Department for Communities and Local Government to cover the costs of the Government Office Network reduces Resource DEL, Net Resource and Net Cash Requirement by £290,000.

A budgetary cover transfer to the Security and Intelligence Agencies (SIA) for Information Assurance reduces Resource DEL, Net Resource and Net Cash Requirement by £4,000,000.

Transfer from non-voted to voted within Resource DEL

A switch within Resource DEL of £1,700,000 from non-voted to voted programme reflects savings made by executive NDPBs and reduces the Grant-in-Aid to eNDPBs and their non-voted expenditure and increases Office for Civil Society voted grants. The impact on Net Resource and Net Cash Requirement and Resource DEL is neutral.

Other neutral adjustments within Resource DEL

A switch within RDEL from administration to programme to cover costs of additional programme expenditure of £14,000,000.

A switch from Office for Civil Society resource grants to core Cabinet Office programme expenditure to re-profile the budget cuts reflected in the main estimate 2010-11 of £11,000,000.

Programme income has been reduced by £29,000,000 offset by a reduction in expenditure due to various programmes coming to an end.

An increase in administration income by £4,800,000 offset by administration expenditure on wages and salaries relating to the Office of Government Commerce; this adjustment is in addition to the Machinery of Government transfer.

A virement of £485,000 from independent offices—Civil Service Commissioners administration expenditure to the newly created executive non-departmental public body—Civil Service Commission—programme expenditure. The impact on Net Resource and Net Cash Requirement and Resource DEL is neutral. Non-Budget expenditure outside DEL has increased by £485,000.

A virement of £126,000 from independent offices—Civil Service Commissioners administration expenditure to core Cabinet Office. The impact on Net Resource Requirement, Net Cash Requirement and Resource DEL is neutral.

Changes in Capital DEL (COED

The changes which result in a net increase in Capital DEL (CDEL) of £23,250,000 are as follows:

End Year Flexibility / Claim on the Reserve

A drawdown to cover capital grants programmes run by the Office for Civil Society (OCS) increases Capital DEL and Net Cash Requirement by £21,750,000.

A drawdown on the Reserve from the Modernisation Fund to cover the costs of estate rationalisation increases Capital DEL and Net Cash Requirement by £1,500,000.

Neutral adjustment within Capital DEL

A switch within Capital DEL from Office for Civil Society capital grants to core Cabinet Office non-current assets to re-profile the budget cuts reflected in the main estimate 2010-11 has a neutral impact on Capital DEL and Net Cash Requirement, whereas Net Resource Requirement decreases by £2,500,000 and Net Voted Capital increases by the same amount.