This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
The spring Supplementary Estimates, presented to the House of Commons today as HC790, seek parliamentary authority for expenditure by government departments of £35.8 billion in resources and £8.2 billion in cash. The Estimates seek parliamentary authority for increased resources and cash both for existing services and for any necessary new services.
It is expected that these Estimates will not involve any overall change in the elements of Departmental Expenditure Limits (DEL) which impact on public sector net borrowing or public sector net debt. Any DEL increases sought have either been offset by savings elsewhere in departmental spending programmes or charged to the DEL Reserve. Any changes to Annually Managed Expenditure (AME) will be reflected in the next Office for Budget Responsibility (OBR) forecast.
Within the overall increase there are:
claims on the DEL Reserve of £6.5 billion, of which £5.1 billion is non-cash depreciation and impairments and therefore has no immediate impact on the public finances
£2.1 billion take up of End Year Flexibility (EYF) (provision carried forward from previous years)
an increase of £21.8 billion in departmental programmes within AME, of which £20.3 billion is non-cash and therefore has no immediate impact on the public finances
Supply Estimates are the means by which the government seeks from Parliament funds and parliamentary authority for departmental expenditure each year. Spring Supplementary Estimates present the final opportunity for departments to seek changes in parliamentary authority for spending for this financial year. Supplementary Estimates increase voted provision (reductions in provision are only permitted in very limited circumstances). Supplementary Estimates therefore cannot necessarily reflect any anticipated underspends in either resources or net cash requirement.
Non-cash budgetary items (e.g. impairments and provisions) have no immediate impact on public sector borrowing or public sector net debt.
Changes to AME in estimates do not imply an equivalent change in the fiscal forecast for the year. The figures only show increases since the last estimates round and do not necessarily show forecast reductions or underspends elsewhere in the system.
The OBR will publish changes to the forecast, including estimates for AME in 2010-11, in the March economic and fiscal outlook.
The DEL Reserve is set aside within the government’s spending plans as a contingency against higher borrowing. Therefore, only DEL Reserve claims which impact on the public finances are charged against the published DEL Reserve.
End Year Flexibility (EYF) is a system that allows departments to carry-forward unspent provision from previous years. The 2010 Spending Review announced that the EYF system will be abolished at the end of 2010-11 and replaced with a new system from 2011-12.