Written statement to Parliament

Department for Transport departmental expenditure

Seeking parliamentary approval to decrease the departmental expenditure limit (DEL) for 2010 to 2011.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

The Rt Hon Philip Hammond MP

Subject to Parliamentary approval, the Department for Transport departmental expenditure limit (DEL) for 2010-11 will be decreased by £792,000 from £12,730,039,000 to £12,729,247,000. Within the DEL change, the impact on resources and capital, are as set out in the following table:

£’000

    Change     New Del
  Voted Non-voted Voted Non-voted Total
Resource -792 0 5,941,476 445,810 6,387,286
Of which          
Administration budget 0 0 263,948 2,154 266,102
Capital 0 0 6,450,423 728,127 7,178,550
Depreciation1 0 0 -802,365 -34,224 -836,589
Total -792 0 11,589,534 1,139,713 12,729,247

1Depreciation, 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.

Resource Change: Programme (total decrease of £792,000)

Voted: total net decrease of £792,000

RfR1

1 Decrease of £792,000 by transfer to the Office of the Rail Regulation, of which £550,000 is to cover the cost of releasing provisions for early departures in 2010-11 and the remainder £242,000 to meet other costs.

Changes in Accounting Policies

Prior Period Adjustments

Cost of capital charges

Costs of capital charges (CCC) have been removed from accounts, budgets and Supply Estimates in accordance with HM Treasury’s Consolidated Budgeting Guidance (CBG). However the Department had liabilities greater than its assets so attracted a cost of capital credit. The removal of the CCC increases resources in DEL. The Prior Period Adjustment (PPA) in respect of the previous two years is:

  2008-09 2009-10
Cost of capital credit (£’000): 2,698,533 2,774,776
Published 15 February 2011