Session 2012-13
Wales Office - Main Estimates 2012-13
Wales Office
2012-13 Main Estimates Memorandum
Introduction
The Wales Office Main Estimate for 2012-13 seeks the necessary resources and cash to support the functions of the Wales Office. These are continuing functions from previous years and no new functions have been added since the 2011-12 Supplementary Estimate. Prior to 2011-12, provision for the Wales Office was contained within the Ministry of Justice’s Supply Estimate but the Wales Office now has its own Estimate.
The main purpose of this Memorandum is to provide the Welsh Affairs Committee with an overview of the Wales Office’s 2012-13 Main Estimate, which starts the supply procedure. This memorandum has been agreed with HM Treasury.
The Estimate seeks approval to a net resource requirement of £12,850,631,000 and a net cash requirement of £12,851,155,000 and for 2012-13 the Wales Office Departmental Expenditure (DEL) limit, net of depreciation and impairments, will be £6,820,000
The Memorandum is split into sections covering:
(1) Summary of the Wales Office plans for 2012-13;
(2) An overview of the Office’s Administration Costs;
(3) An overview of DEL and AME totals;
(4) Details of the grant paid to the Welsh Consolidated Fund; and
(5) Details of the Welsh Block 2006-07 to 2014-15
Section 1:
Summary of Wales Office Plans for 2012-13
2012-13 is the second year of the SR 2010 Spending Review period. From the baseline set in the 2010 Spending Review, the Wales Office has agreed an overall real terms reduction, over the four years, of 25 per cent (and a real terms reduction of 33 per cent in its administration budget). This is in line with the targets set for the other Territorial Offices (Scotland Office and Northern Ireland Office).
To help meet this reduction the Wales Office, together with Northern Ireland and Scotland Offices, are assessing where services can be shared across the three territorial offices. Currently, the three offices are piloting a single, shared parliamentary team and further joint working is envisaged in the coming years.
Section 2
An overview of the Office’s Administration Costs
The key purpose of the Wales Office remains to support the Secretary of State for Wales in promoting the best interests of Wales within the United Kingdom.
This Estimate provides for the administration costs of the Wales Office, including the upkeep of a Grade II* listed building; the salaries of the Secretary of State and her Minister and payments to the Welsh Consolidated Fund.
Additionally, the Wales Office now has Annually Managed Expenditure (AME) commitments from 2011-12 to 2014-15. This is in respect of a pension liability, transferred from MOJ, for an early release scheme in 2009-10.
Section 3
Overview of DEL and AME totals
Table 1 –Resource and Capital Requirement DEL
|
Supplementary Estimate 2011-12 £’000s |
Change |
Main Estimate 2012-13 £’000s |
|
|
Resource DEL (RDEL) |
5,903 |
263 |
6,166 |
|
Capital DEL (CDEL) |
724 |
0 |
724 |
|
Total DEL (RDEL + CDEL less depreciation) |
6,557 |
263 |
6,820 |
Table 2 – Net AME requirement
|
Supplementary Estimate 2011-12 £’000s |
Change |
Main Estimate 2011-12 £’000s |
|
|
AME |
109 |
-129 |
-20 |
Resource changes arising in the Estimate from the 2011-12 Main Estimate:
In the 2011-12 Supplementary, the Wales Office surrendered £114,000 of resource DEL under the Budget Exchange system. There is a corresponding increase of £114,000 in 2012-13 plans. The Commission on Devolution (Section B) is being funded from within existing Wales Office allocations.
Capital DEL provision for 2012-13 remains unchanged at £724,000.
A provision of £90,000 (AME) was created in 2011-12 and subsequently revalued to £109,000. This will be discharged over five years at an expected rate of £20,000 per year.
Section 4
The Estimate also allows for the payment of a grant to the Welsh Consolidated Fund (WCF) as allowed for in Section 118 of the Government of Wales Act 2006. All expenditure by the Welsh Government is charged to the WCF. A reconciliation, in line with the spending review settlement, of the 2012-13 spending aggregates of the Welsh Government, with the cash grant, is shown below.
|
2012-13 (£’000) |
||
|
Expenditure Classified as DEL (Resource + Capital DEL) |
15,076,579 |
|
|
Expenditure Classified as AME |
405,773 |
|
|
Total Managed Expenditure |
15,482,532 |
|
|
Less: |
||
|
Non Voted expenditure: |
||
|
LA Credit Approvals |
107,299 |
|
|
Other Non-Voted |
6,078 |
|
|
Resource Ringfenced Non Cash |
472,999 |
|
|
AME Non-cash |
221,714 |
|
|
TOTAL NON VOTED TME |
808,090 |
|
|
TOTAL VOTED TME |
14,674,442 |
|
|
Voted receipts |
||
|
Contributions from the National Insurance Fund |
-886,492 |
|
|
NDR Receipts |
-944,000 |
|
|
Total |
-1,830,492 |
|
|
Timing Adjustments |
||
|
Increase / Decrease in Debtors & Creditors |
535 |
|
|
Use of Provisions |
0 |
|
|
TOTAL GRANT TO WELSH CONSOLIDATED FUND |
12,844,485 |
|
|
Section 5: The Welsh Block 2006-07 to 2014-15 |
||||||||||
|
2006-07 |
2007-08 |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
2013-14 |
2014-15 |
||
|
outturn |
outturn |
outturn |
outturn |
outturn |
provisional outturn |
plans |
plans |
plans |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Wales Office Resource(3) |
||||||||||
|
Wales Office Administration Costs |
4,219 |
4,886 |
4,983 |
5,567 |
5,074 |
5,843 |
6,106 |
6,072 |
4,971 |
|
|
Wales Office - other(3) |
29 |
37 |
23 |
42 |
43 |
60 |
60 |
60 |
60 |
|
|
Wales Office Resource(3) |
4,248 |
4,923 |
5,006 |
5,609 |
5,117 |
5,903 |
6,166 |
6,132 |
5,031 |
|
|
Wales Office Capital |
||||||||||
|
Wales Office |
33 |
145 |
96 |
0 |
130 |
724 |
724 |
724 |
25 |
|
|
Wales Office Resource + Capital DEL(3) |
4,281 |
5,068 |
5,102 |
5,609 |
5,247 |
6,627 |
6,890 |
6,856 |
5,056 |
|
|
less depreciation & impairments |
-48 |
-48 |
-236 |
-61 |
-227 |
-70 |
-70 |
-70 |
-70 |
|
|
Wales Office DEL (4) |
4,233 |
5,020 |
4,866 |
5,548 |
5,020 |
6,557 |
6,820 |
6,786 |
4,986 |
|
|
Welsh Government |
||||||||||
|
Welsh Government Resource |
11,563,725 |
12,253,358 |
12,816,248 |
13,536,421 |
13,788,840 |
13,754,476 |
13,850,138 |
13,986,929 |
14,043,525 |
|
|
Welsh Government Capital |
1,318,108 |
1,461,436 |
1,626,521 |
1,931,711 |
1,751,150 |
1,396,277 |
1,226,621 |
1,145,330 |
1,202,529 |
|
|
Welsh Government DEL(3) |
12,881,833 |
13,714,794 |
14,442,769 |
15,468,132 |
15,539,990 |
15,150,753 |
15,07 6 ,7 59 |
15,132,259 |
15,246,054 |
|
|
less depreciation & impairments |
-177,855 |
-239,273 |
-324,263 |
-404,920 |
-269,607 |
-338,811 |
-372,481 |
-355,858 |
-352,675 |
|
|
Welsh Government DEL(4) |
12,703,978 |
13,475,521 |
14,118,506 |
15,063,212 |
15,270,383 |
14,811,942 |
14, 704 ,2 78 |
14,776,401 |
14,893,379 |
|
|
Total Welsh Block(4) (5) (6) |
12,708,211 |
13,480,541 |
14,123,372 |
15,068,760 |
15,275,403 |
14,818,499 |
14,711,098 |
14,783,187 |
14,898,365 |
|
|
Notes (1) Totals may not sum due to roundings. |
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|
(2) Includes Budgetary Changes as a result of Clear Line of Sight |
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|
(3) Including depreciation & impairments |
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|
(4) Resource + capital - depreciation & impairments |
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|
(5) By convention Departmental Expenditure Limit budgets are expressed as resource and capital less depreciation & impairments. Therefore the resource and capital numbers in this table will not sum to the Departmental Expenditure Limit: the difference being depreciation & impairments. |
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|
(6) Wales Office DEL + Welsh Government DEL less depreciation and impairments |
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