UKHSA Advisory Board: Finance report
Updated 4 July 2025
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1. Purpose of the paper
This paper gives an overview of the UK Health Security Agency’s finances as at month two of Financial Year 2026-26 (the end of May 2025).
2. Recommendations
The Advisory Board is asked to note UKHSA’s financial position.
3. Summary of 2025-26 financial performance (at end of May)
The table below shows resource and capital departmental expenditure limits (RDEL and CDEL) for 2025 to 2026, split by the parts of:
- core agency costs
- non-COVID-19 vaccines and countermeasures and
- the COVID Vaccine Unit (CVU)
It shows the year-to-date position and the provisional outturn for the 12 months April 25 to March 26.
Table 1. Month 2 resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)
| Budget | Actual | Variance | |
|---|---|---|---|
| Core Admin RDEL | 20,504 | 20,901 | (396) |
| Programme RDEL | 51,127 | 48,384 | 2,743 |
| Trust Programme (Cyber) RDEL | 0 | 0 | 0 |
| ODA RDEL | 2,310 | 2,310 | 0 |
| CVU RDEL | 72,308 | 69,720 | 2,588 |
| VCR RDEL | 46,994 | 46,994 | 0 |
| Core CDEL | 15,235 | 8,776 | 6,459 |
| Science Hub CDEL | 0 | 0 | 0 |
| CVU CDEL | 0 | 0 | 0 |
| VCR CDEL | 0 | 0 | 0 |
| UKHSA core resource | 71,631 | 69,284 | 2,346 |
| UKHSA total resource | 193,243 | 188,309 | 4,934 |
| UKHSA total capital | 15,235 | 8,776 | 6,459 |
| UKHSA total | 208,478 | 197,085 | 11,393 |
Table 2: Full year resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)
| Budget | Actual | Variance | |
|---|---|---|---|
| Core Admin RDEL | 130,250 | 119,290 | 10,960 |
| Programme RDEL | 309,446 | 315,565 | (6,119) |
| Trust Programme (Cyber) RDEL | 8,500 | 8,500 | 0 |
| ODA RDEL | 10,322 | 10,322 | 0 |
| CVU RDEL | 581,334 | 581,002 | 0 |
| VCR RDEL | 631,777 | 631,777 | 0 |
| Core CDEL | 157,900 | 160,196 | (2,296) |
| Science Hub CDEL | 6,000 | 5,995 | 5 |
| CVU CDEL | (26,000) | (26,226) | 226 |
| VCR CDEL | 56,775 | 56,775 | 0 |
| UKHSA core resource | 439,696 | 434,855 | 4,841 |
| UKHSA total resource | 1,671,629 | 1,666,456 | 5,713 |
| UKHSA total capital | 194,675 | 196,740 | (2,065) |
| UKHSA total | 1,866,304 | 1,863,195 | 3,109 |
Core Resource budget
The total budget includes the initial settlement of £430.9million with an increase of £8.8million for pandemic preparedness and security clearance. The full-year forecast is £4.8million below plan. However, at month two there are net risks and opportunities identified at £11.7million. If all of these materialise this results in a risk adjusted pressure of £6.9million (above plan).
The forecast includes the increase in employer’s national insurance contributions (announced in the 2024-25 budget statement and which came into effect in April, with an impact of £3.9million). The forecast also includes the impact of the Civil Service Pay Remit Guidance for 2025-26 published in May 2025 (the impact is higher than the 2% budgeted for, equating to an additional £5.5million).
Core Capital budget
The provisional outturn is £2.3million above plan, noting that in previous years we have seen slippage throughout the year, and the year-to-date position is already currently £6.5million below plan. We have put in place mitigations to ensure a robust forecast, and any slippage is highlighted early. This includes capital review sessions with all groups scheduled during late June and early July.
Covid Vaccine Unit Resource and Capital budget
The Covid Vaccine Unit (CVU) outturn is to be on budget for the year. The position at month two is £2.6million below plan however this is expected to be back in line by the end of the Spring campaign. The accounting treatment for the Moderna Strategic Partnership which starts this financial year is currently being agreed with the National Audit Office (NAO). A change in treatment would bring forward c£40million spend from 2026-27 to this year.
The capital credit outturn is generated by a repayment agreement in place for non-supply of vaccines agreed in the previous financial year.
Vaccines and countermeasures resource and capital budget
The budget has not been delegated by DHSC with the final budget to be confirmed. For reporting we will use the month two forecast as the budget until this is delegated. This is a demand led budget across 22 vaccine programmes. UKHSA is currently undertaking work to better utilise data to improve forecasting (including more regular engagement with DHSC on the forecast).
4. Spending Review Phase 2
Phase 2 of Spending Review was announced on 11 June. In DHSC’s overall budget, day-to-day spending will increase from £202 billion in 2025-26 (as of the Spring Statement 2025) to £232 billion in 2028-29. Adjusted for inflation, this is a real terms annual increase of 2.8%. Capital spending (longer term investment) will increase from £13.6 billion in 2025-26 to £14.6 billion 2029-30. This means the overall real terms value will remain the same across the period.
Arms Length Bodies’ allocations are yet to be settled and therefore this remains the biggest risk to UKHSA. We are in ongoing budget discussions with DHSC, examining different scenarios to ensure efficient resource allocation whilst maintaining essential health protection services. Final settlement decisions remain under negotiation and we expect this to conclude in the autumn.
5. Annual Report and Accounts (ARA)
Work continues on the 2024-25 ARA. The team is confident that version 1 of the account will be ready to hand over to the NAO on the 30th June as planned.
Good progress has been made on sampling. All Income and Expenditure samples for month 9 are complete, and we are now working on the final income and expenditure samples for months 10-12.
CVU working papers have already been provided to NAO, with the NAO review of the model arranged for July.
Completing the fixed asset reconciliations and listings to support the account balances has taken longer and been more complex than anticipated. The processing of the historic transactions from previous years on to the Fixed Asset Register has generated a significant amount of additional work. The position is now prepared but still under review to ensure that it is complete, it reflects the transactions that have happened and is presented in a manner that supports audit. Pricewaterhousecoopers will be reviewing in the second half of June.
We continue to work closely with DHSC Finance colleagues on the Group account and we are currently on plan for delivering an un-disclaimed account, certified in October and laid in November.
Luke Heath
Director, Finance, Performance, Risk & Assurance
July 2025