Departmental Expenditure Limit (2010-11)
The Secretary of State for Communities and Local Government (Mr Eric Pickles)
Subject to parliamentary approval of the spring supplementary estimate, the Department for Communities and Local Government’s departmental expenditure limits, (DEL) for 2010-11 will change as follows:
Section 1: Main Programmes DEL
1. The Department for Communities and Local Government’s main DEL will be increased by £326,477,000 from £9,853,667,000 to £10,180,144,000 and the administration budget will be decreased by £2,100,000 from £262,012,000 to £259,912,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
Change | NEW DEL | ||||
|---|---|---|---|---|---|
Voted | Non-voted | Voted | Non-voted | Total | |
Resource | 4,120 | 58 | 3,341,449 | 438,412 | 3,779,861 |
Of which | |||||
Administration budget | -2,100 | 258,234 | 1,678 | 259,912 | |
Capital* | 36,507 | 330,493 | 1,341,660 | 5,147,275 | 6,488,935 |
Depreciation** | -42,984 | -1,717 | -81,472 | -7,180 | -88,652 |
Total | -2,357 | 328,834 | 4,601,637 | 5,578,507 | 10,180,144 |
*Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets **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. The change in the resource element of the DEL arises from:
2.1 An internal transfer of £522,000 from request for resources 1 (main DEL) to request for resources 2 (local government DEL) to pay the Audit Commission bill for fire inspection work;
2.2 A net transfer of £4,700,000 from other Government Departments, made up of:
Amount (£) | Department | Reason |
|---|---|---|
£2,500,000 | Culture, Media and Sport | Final contributions for 2010-11 towards the cross-Government OpenData policy |
£2,500,000 | HM Revenue and Customs | |
£2,500,000 | Ministry of Justice | |
Transfers out (Programme total £700,000, Administration total £2,100,000) | ||
£700,000 | Office of National Statistics | £700,000 to fund migration statistics work |
£2,100,000 | Work and Pensions | To reflect reduced activity on administering European social fund payments |
2.3 A net increase in receipts of £23,338,000. This is made up of increases in provision of:
£100,000 for Residential Property Tribunal Service in respect of hearing application fees;
£42,000 towards the aggregates minerals survey, comprising £20,000 from the Welsh Assembly, £12,000 from the Scottish Executive and£10,000 from the Department for Business Innovation and Skills;
£600,000 from the Department for Energy and Climate Change towards the English Housing Survey;
£9,810,000 for the Planning Inspectorate to bring the receipt in line with their projected income;
£381,000 for fire and rescue services improvement programme for payment of the Audit Commission bill;
£2,200,000 for control rooms in respect of compensation for building work on the East Midland Regional Control Centre;
£2,500,000 for Ordnance Survey to cover their income from provision of OpenData;
£7,955,000 for Government Office programmes (administration budget) comprising £440,000 for work on the older persons agenda; £1,515,000 for space lease out in Government Office buildings to minor occupiers and £6,000,000 for staff exit costs from the Department for Environment, Food and Rural Affairs, the Home Office and the Department for Education.
offset by decreases in provision of:
£250,000 for adults facing chronic exclusion as this income will not be received.
2.4 A net transfer of £58,000 programme provision from non-voted to voted made up as follows:
from voted to non-voted provision
£159,000 to the Homes and Communities Agency in respect of the Advisory Team on Large Applications (ATLAS);
£2,800,000 for Community Development Foundation for pension risks;
£246,000 for Thurrock Urban Development Corporation to increase their depreciation budget;
from non- voted to voted provision
£3,147,000 to control rooms comprising £2,831,000 from the departmental unallocated provision and £316,000 from the Tenant Services Authority for costs associated with programme closure;
2.5 The changes described at paragraphs 2.3 and 2.4 above have a net nil effect on the departmental expenditure limit. The additional budget sought for the items at 2.3 is fully offset by a corresponding increase in receipts. The net transfer between voted and non-voted expenditure reflects only a re-classification of budget, not additional expenditure.
2.6 The change in the administration budget arises from the transfer of £2,100,000 from the Government Offices to the Department for Work and Pensions—see above table at 2.2.
3. The change in the capital element of the DEL arises from:
3.1 Draw-down of end of year flexibility of £390,000,000, as follows:
£200,000,000 to fulfil the remaining national affordable housing programme commitments;
£140,000,000 for contractual commitments on the decent homes programme and mortgage rescue scheme; and
£50,000,000 for the Kickstart programme.
3.2 Transfer to HM Treasury of £23,000,000 for the local authority new build to cover the local authority borrowing element of the programme. The local authority new build programme is funded by a mixture of the Homes and Communities Agency grants and local authorities own prudential borrowing. Prudential borrowing is treated as public expenditure and has to be reflected in HM Treasury’s accounts. Therefore, HM Treasury require an offsetting transfer from DCLG budgets to HM Treasury’s budget to reflect the increased borrowing requirement.
3.3 A net increase in receipts of £128,979,000. This is made up of increases in provision of:
£80,888,000 for the re-classification of the regional control centre leases from inventory to finance leases;
£62,069,000 of potential assets to be transferred to the fire and rescue authorities;
£4,046,000 for capital pooled housing receipts. These receipts are available to fund pressures arising elsewhere in the Department
offset by decreases in provision of:
£18,024,000 for the regional control centres leases that the Department is expecting to transfer out this financial year. HM Treasury agreed that the Department will receive a capital credit upon the transfer of any of the regional control centres leases.
3.4 A transfer of £36,507,000 from non-voted to voted made up of:
£20,000,000 of receipts generated from the Homes and Community Agency from development land disposals to community empowerment to meet emerging pressures;
£7,553,000 from Homes and Communities Agency growth due to withdrawal of funding in support of eco-towns and
an adjustment of £8,954,000 within new dimension for the surrendering of the extra receipts to the Consolidated Fund.
3.5 The changes described at paragraphs 3.3 and 3.4 above have a net nil effect on the departmental expenditure limit:
Section 2: Local Government DEL
4. The Department for Communities and Local Government's local government DEL will be decreased by £648,000 from £25,990,195,000 to £25,989,547,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
Voted | Non-voted | Voted | Non-voted | Total | |
|---|---|---|---|---|---|
Resource | -1,978 | -15 | 25,861,068 | 115,338 | 25,976,406 |
Capital* | 1,470 | 15 | 13,940 | 597 | 14,537 |
Depreciation** | 0 | -140 | 0 | -1,396 | -1,396 |
Total | -508 | -140 | 25,875,008 | 114,539 | 25,989,547 |
*Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets **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. |
5. The change in the resource element of the DEL arises from:
the transfer of £522,000 to request for resources 2 (local government DEL) from request for resources 1 (main DEL) described at paragraph 2.1 above;
a transfer of £2,500,000 to the Ministry of Justice towards the costs of the 7/7 bombing inquest costs. This item will not be shown on the face of the estimate, because voted provision can be reduced only for machinery of government changes and transfers from one request for resources to another within the same estimate. It will be classified as an estimate exclusion item; and
a switch of £15,000 from resource to capital for valuation tribunals tocover additional telephone costs for their Doncaster office.
6. The change in the capital element of the DEL arises from:
a refund of £1,470,000 from the Department for Work and Pensions for Government Connect, due to an under spend on the project; and
a switch of £15,000 to capital from resource as described above at paragraph 5.