Northern Ireland Office Main Estimates Memorandum Introduction The NIO Main Estimate for seeks the necessary resources and cash to support the functions of the NIO. These are continuing functions from previous years and no new functions have been added since the 2014-15 Supplementary Estimate. The main purpose of this Memorandum is to provide the NIAC with an overview of the NIO 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 14,225,466,000 and a net cash requirement of 14,222,541,000 and for the NIO Departmental Expenditure (DEL) limit, net of depreciation and impairments, will be 19,746,000. The Memorandum is split into sections covering: (1) Summary of the NIO plans for ; (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 Northern Ireland Consolidated Fund; (5) Details of Barnett consequentials for ; (6) Control Totals for the NIE including breakdown by main programme of AME spending; (7) Reconciliation of the 2013 Spending round settlement for NIE and current Control Totals; (8) Details of the NI Block 2009-10 to.
Section 1: Summary of NIO Plans for Provision for was determined in the 2013 spending round. From the baseline set in the 2013 spending round, the NIO agreed real terms reductions of 10%. This is in line with the targets set for the other Territorial Offices (Scotland Office (SO) / Wales Office (WO)). To meet this reduction the NIO has taken a number of steps. New accommodation arrangements have been put in place for both the Core Department in London and some of the Department s Arms Length Bodies in Belfast. The Department has also reduced staffing levels and entered into a new arrangement with Historic Royal Palaces (HRP) for the management of Hillsborough Castle. Together with SO/WO, NIO has exploited opportunities for services to be shared across the territorial offices e.g. a single parliamentary clerk and shared FOI team with the WO. The Department continues to review its business needs and costs with the aim of delivering further efficiencies where possible. Section 2: Overview of the Office s Administration Costs The key purpose of the NIO remains to support the Secretary of State for Northern Ireland in promoting the best interests of Northern Ireland within the United Kingdom. This Estimate provides for the administration costs of the NIO, including the salaries of the Secretary of State and his/her Minister and payments to the Northern Ireland Consolidated Fund. Section 3: Overview of NIO DEL & AME totals for Resource and Capital DEL 000 nominal Resource DEL (RDEL) 21,466 o/w RDEL excluding depreciation 19,366 o/w depreciation ring fence in RDEL 2,100 Administration Budget* 13,317 o/w non-ringfenced RDEL administration budget 11,567 o/w depreciation ringfence administration budget 1,750 Capital DEL 0.380 * This is part of the RDEL control total and not an addition to it. The following adjustments have been made to the Control Totals for NIO since the 2013 Spending Round settlement:
Changes since 2013 Spending Round Admin Costs m m Resource DEL 2013 Spending Review: Outcome 20.409 11.380 (Incl depreciation) Autumn Statement 2013: Resource DEL Allocation -0.210 0.000 Budget Exchange carryforward from 2014-15 0.267 0.187 Reserve Claim for the funding of the 2015 General Elections 1.000 0.000 Control Total at Main Estimate 21.466 11.567 Depreciation 2013 spending round: Outcome 2.100 1.750 No subsequent changes Control Total at Main Estimate 2.100 1.750 Capital DEL 2013 spending round: outcome 0.380 0.000 No subsequent changes Control Total at Main Estimate 0.380 0.000 Annually Managed Expenditure (AME) In addition, the Supply Estimate contains 90,000 of Allocated in Vote on Account AME for the NIO. This provision will be reviewed again at the Supplementary Estimates stage. Section 4: Cash grant payable to the NICF The Estimate also allows for the payment of a cash grant to the Northern Ireland Consolidated Fund. All expenditure by the NIE is charged to the NICF. This expenditure is shown in Section F of the NIO Estimate. The table below reconciles the spending aggregates of the NIE with the cash grant payable to the NIE.
Main million Estimate Departmental Expenditure Limit 11,208.7 Annually Managed Expenditure (inc Other AME) 9,087.2 Expenditure Financed by Regional Rates 651.1 Expenditure Financed by RRI Borrowing 326.8 Total Managed Expenditure (DEL, AME & Other AME) 21,273.9 Less Non-Cash charges -3,767.6 Less Non Voted (DEL,AME & Other AME) -12,011.8 Voted Other Expenditure outside DEL 8,210.0 Utilisation of Provisions 1,176.0 Movement in debtors/creditors 307.2 Supply Expenditure 15,187.7 Interest Payable 76.7 District Council Rates 558.3 Repayment of Principal of RRI Loans 79.4 Other Services 8.3 Total Expenditure 15,910.3 Income Add in RRI 326.8 District Rates 558.3 Regional Rates 730.4 Interest Receivable 65.1 Miscellaneous receipts 25.7 of which NICF Balance 0.4 Continental Shelf 1.7 Misc - NIHE, Land Annuities etc 0.1 Excess Accruing Resources 2.4 CFERS 16.5 EU CFERS 4.5 Total Income 1,706.4 Cash Grant payable to the Northern Ireland Consolidated Fund 14,204.0
Section 5: Barnett Consequentials From time to time, the Treasury will adjust the budgets of UK departments with the devolved administrations receiving Barnett consequentials of these adjustments. The majority of these budgetary adjustments take place at major fiscal events such as the Autumn Statement and Spring Budget. The table below details the Barnett consequentials for the financial year received by the NIE since the announcement of the 2013 spending round in 2013. Fiscal Event UK Government Measure Resource/Capital Barnet Consequential ( m) Note s Autumn Statement 2013 Free School Meals Resource 21.112 Business Rates 1000 discount for 2 years (Retail properties up to 50K incl. Resource 13.233 food properties) Business Rates cap at 2% for 1 year Resource 8.179 Business Rates: Reoccupation Relief (50% for retail) Resource 0.332 Relax single property criteria for SBRR Resource 0.100 Increasing HE student numbers by 30k in 14/15 Resource 8.146 FE apprenticeships Resource 0.997 FE apprenticeships (STEM) Resource 1.164 New Enterprise Allowance Resource 0.863 Help to Work Resource 6.443 Right to Buy Capital 1.396 Rail fares RPI + 0 Resource 0.997 Warm Homes Discount Resource 8.974 SALIX: energy efficiency loans Capital 0.839 Rebates for Energy Efficiency Capital 3.075 Rebates for Energy Efficiency Resource 0.280 Energy Efficiency for Landlords Capital 0.839 Affordable Rent to Buy Capital 8.378 Builders Finance Fund Capital 6.849 Housing: Infrastructure to unlock housing on large sites Capital 7.115 RDEL reduction Resource -18.936 Supporting Work Interventions Resource 3.777 Sub total 84.152 Budget 2014 Apprenticeship Grants for Employers Resource 2.826 Postgrad Apprenticeships Resource 0.332 Early Years Pupil Premium Resource 1.662 Flooding - Extra maintenance funding Resource 1.164 Flooding - Extra capital funding for maintenance Capital 0.831
Enterprise Zone Business Rates Discount Resource 0.033 Development Benefits Resource 0.083 Cathedral Repairs Capital 0.332 Cambridge City Deal Resource 0.665 Estate Regeneration Capital 0.665 Custom Build Capital 0.332 Sub total 8.927 Autumn Statement 2014 Budget 2015 Business Rates: Doubling of SBRR for Resource 13.890 Business Rates: 2% Cap for 1 year Resource 3.414 Business Rates: Additional 500 retail discount Resource 3.680 Business Rates: Transitional Relief Resource 0.332 Mental health - eating disorders Resource 0.995 Mental health - adult community learning Resource 0.166 Mental health - dementia Resource 0.099 NHS frontline - additional funding Resource 38.951 NHS frontline - additional funding Capital 2.486 Education: Early intervention pilot Resource 0.099 Education: Academies Resource 0.332 Education: Careers Resource 0.663 Manchester International (Lyric Theatre) Capital 0.186 Manchester Museum of Science & Industry Capital 0.017 WW1 cultural activities Resource 0.050 Football Facilities Capital 0.265 Football Facilities Resource 0.066 Housing Zones Capital 1.326 Rail fares Resource 2.586 Household energy efficiency measures Capital 1.952 Shale - Monitoring Resource 0.049 Shale - Support for Planning Resource 0.040 Shale - Health & Safety Executive Resource 0.029 Shale - Regulators & Public Engagement Resource 0.036 Off Grid Gas Fund Capital 0.829 Kew Gardens Resource 0.076 Coastal Paths Resource 0.166 ESA - provision of WCAs Resource 0.201 Fraud and error capacity - DWP Resource 0.169 Fraud and error capacity - HB - LAs Resource 0.682 Intensive activity pilot Resource 0.037 ESA package Resource 0.175 Psychological wellbeing and work pilot Resource 0.046 Sub total 74.088 Health North Resource 0.166 Advanced Wellbeing Research Centre Capital 0.166 Defibrillators Resource 0.034 Mental Health: CAMHS - Increase access by 110,000 Resource 1.558
Mental Health: CAMHS - Children s ' talking therapies Resource 1.061 Mental Health: Perinatal mental health services Resource 0.497 Mental Health: Non-recurrent funding for CAMHS Resource 5.171 Mental Health: Co-location of IAPT in Jobcentres Resource 0.014 Mental Health: Early access to online CBT Resource 0.112 Mental Health: Veterans - supported accommodation Resource 0.056 Universal Infant Free school meals Resource 0.332 Universal Infant Free school meals Capital 0.332 Bring forward EIIs Resource 0.717 Tech Nation - entrepreneur hubs Resource 0.365 Free wifi in libraries Resource 0.245 Tour de Yorkshire - marketing Resource 0.010 Yorkshire Festival Resource 0.017 Closed Road Circuits Capital 0.010 Welcome to Yorkshire - marketing Resource 0.017 Turner Prize - Hull Resource 0.017 Turner Prize - Hull Capital 0.033 Muni Theatre - Colne Resource 0.002 Waste Crime Resource 0.139 Big Energy Saving Network Resource 0.037 Northstowe Resource 0.099 Croydon Growth Zone Resource 0.046 London Land Commission Resource 0.033 Norway to Newcastle ferry - marketing Resource 0.010 Business Rates Discount in EZs Resource 0.007 Funding for Real-Time Information Resource 0.168 Sub total 11.470 Totals Resource DEL 140.383 Capital DEL 13.588 Capital DEL 24.666 All Capital DEL 38.254 All DEL 178.636 Section 6: Control Totals for the NIE including breakdown by main programme of AME spending Resource and capital DEL for NIE 2015- m nominal 16 Resource DEL (RDEL) 10,109 of which: RDEL excluding depreciation 9,558 depreciation ring fence in RDEL 409 student loans ring fence in RDEL 141 Capital DEL 1,100 of which: Fiscal CDEL 971 129
In addition the NIE are forecasting Annually Managed Expenditure of 10.065 billion in the following areas Programme m Expenditure funded by Regional Rates 651.1 Borrowing under Reinvestment & Reform Initiative 326.8 Depreciation & Impairments 372.2 Provisions 224.2 Social Security Benefits 5,681.3 Social Fund 62.3 Student Loans 249.8 Public Sector Pensions 2,346.7 Capital - Public Corporations 125.0 Other 25.6 TOTAL 10,065.1
Section 7: Reconciliation of the 2013 spending round settlement for NIE and current Control Totals 2013 spending round settlement Block Grant Adjustment for Air Passenger Duty Barnett Consequentials: Autumn Statement 2013 Barnett Consequentials: Autumn Statement 2014 Barnett Consequentials: Budget 2014 Barnett Consequentials: Budget 2015 Budget Regime Change - ONS reclassify policy delivery arm of NI Housing Executive to Central Government Budget Regime Change - Small benefits (AME to DEL) Budget transfer from Cabinet Office - Law Commission DEL reduction: Delay in implementation of Welfare Reform Budget transfer from Home Office: Health migrant levy Recovery of Reserve Support given in 2014-15 Budget transfer from Home Office - Sham marriages RDEL Ring-fenced depreciation Ringfenced student loans m m m m Capital DEL 9,623,934 403,894 140,969 1,060,012-2.269 55.660 28.492 67.028 7.061 6.766 2.161 10.929 0.540 0.450 5.500 1.600 6.523 0.030-114,000 3.443-100,000 0.025 Current Control Totals 9,558.519 409.394 140.969 1.099.866
Section 8 The Northern Ireland Block 2009-10 to 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 outturn outturn outturn outturn outturn plans plans '000 '000 '000 '000 '000 '000 '000 Northern Ireland Office Resource (3) Northern Ireland Office Administration Costs 15,112 15,530 14,641 13,351 12,876 15,496 15,430 Northern Ireland Office - other (3) 33,582 17,682 11,601 8,765 12,374 12,055 5,036 Northern Ireland Office Resource (3) 48,694 33,212 26,242 22,116 25,250 27,551 20,466 Northern Ireland Office Capital Northern Ireland Office 301 8,280 162 1,284 307 1,491 380 Northern Ireland Office Resource + Capital DEL (3) 48,995 41,492 26,404 23,400 25,557 29,042 20,846 less depreciation & impairments -2,836-2,196-1,858-1,764-1,533-1,773-2,100 Northern Ireland Office DEL (4) 46,159 39,296 24,546 21,636 24,024 27,269 18,746 Northern Ireland Executive Northern Ireland Executive Resource 9,641,423 9,972,739 9,862,039 10,040,967 10,174,627 10,280,665 10,108,882 Northern Ireland Executive Capital 1,277,142 1,192,128 1,000,301 968,898 930,844 1,083,646 1,099,866 Northern Ireland Executive DEL (3) 10,918,565 11,164,867 10,862,340 11,009,865 11,105,471 11,364,311 11,208,748 less depreciation & impairments -342,262-369,953-420,460-576,938-450,862-533,056-550,363 Northern Ireland Executive DEL (4) 10,576,303 10,794,914 10,441,880 10,432,927 10,654,609 10,831,255 10,658,385 Total Northern Ireland Block (4) (5) (6) 10,622,462 10,834,210 10,466,426 10,454,563 10,678,633 10,858,524 10,677,131
Notes (1) Totals may not sum due to roundings. (2) Includes Budgetary Changes as a result of Clear Line of Sight (3) Including depreciation & impairments (4) Resource + capital - depreciation & impairments (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. (6) Northern Ireland Office DEL + Northern Ireland Executive DEL less depreciation and impairments