Departmental Expenditure Limit (2010-11)
(Limited Text - Ministerial Extracts only)
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The Secretary of State for Defence (Dr Liam Fox)
Subject to parliamentary approval of the necessary supplementary estimate, the Ministry of Defence departmental expenditure limits (DEL) will be increased by £603,289,000 (voted and non-voted) from £37,322,254,000 to £37,925,543,000. 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 | 3,343,915 | 4,737 | 38,798,465 | 608,197 | 39,406,662 |
Of which: Administration Budget | - | - | 2,182,586 | - | 2,182,586 |
Capital | -453,363 | - | 9,616,845 | 851 | 9,617,696 |
Depreciation* | -2,292,000 | - | -11,089,259 | -9,556 | -11,098,815 |
Total | 598,552 | 4,737 | 37,326,051 | 599,492 | 37,925,543 |
*From the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. |
The changes to the resource and capital elements of the DEL arise from:
Voted Resource DEL increase £3,343,915,000:
RfRl:
1) An increase of £700,000,000 for additional funding agreed as part of the spending review settlement;
(2) To reflect a transfer of £250,000,000 from Capital DEL to Resource DEL within RfRl relating to Single Use Military Equipment (SUME) flexibility with no overall impact on DEL;
(3) Additional (non-cash) resource provision of £2,300,000,000 for impairments and write-offs resulting from the Defence Equipment & Support (DE&S) stock accounting and verification project;
(4) To increase Non Budget Grants in Aid (Non-Voted) for the National Army Museum of £243,000 and £705,000 for the Council of Reserve Forces and Cadets Association in Land Forces TLB by reducing Resource DEL current costs and increasing Non Budget Grants in Aid with no overall impact on resource.
RfR2:
(1) To reflect a transfer of £105,363,000 from Capital DEL to Resource DEL within RfR2 relating to SUME flexibility with no overall impact on DEL;
(2) To reflect a reduced forecast of £8,000,000 relating to RfR2 non-cash costs;
(3) To reduce Voted Resource DEL by £2,500,000 relating to cash release of provisions that has been switched to Non-Voted Resource;
(4) To revise sub-head provisions to reflect Resource and Capital revisions in allocations between Top Level Budget Holders to match required Defence outputs, with no overall impact on DEL.
Non-Voted Resource DEL increase £4,737,000:
RfRl:
(1) To reflect the Non-Voted impact of an increase Non Budget Grants in Aid (Non-Voted) for the National Army Museum of £243,000 and £705,000 for the Council of Reserve Forces and Cadets Association in Land Forces TLB by reducing Resource DEL current costs and increasing Non Budget Grants in Aid with no overall impact on resource;
(2) To reflect an omitted increase in Non-Voted provision of £1,289,000 for increased Grant-in-Aid funding at Winter Supplementary Estimates.
RfR2:
(1) To reflect an increase of £2,500,000 in the cash release of provisions forecast relating to RfR2.
Voted Capital DEL decrease £453,363,000:
RfRl:
(1) To reflect a transfer of £250,000,000 from Capital DEL to Resource DEL within RfRl relating to SUME flexibility with no overall impact on DEL;
(2) To align Urgent Defence Requirement funding with reduced forecast capital expenditure of £98,000,000.
RfR2:
(1) To reflect a transfer of £105,363,000 from Capital DEL to Resource DEL within RfR2 relating to SUME flexibility with no overall impact on DEL.
The changes to Resource DEL and Capital DEL will lead to an increased net cash requirement of £602,000,000.