Table of Contents Department for Environment Food and Rural Affairs Supplementary Select Committee Memorandum Section Section Header Page 1 Executive Summary 2 2 The main activities and priorities for the Department 4 3 Summary of the main spending control figures contained in the 4 Supplementary 4 Explanation of significant changes in provision compared with Main 5 5 Detailed explanation of changes in provision compared with Main 7 6 Year on year comparison of major controls 7 7 Changes to the Ambit 8 8 Machinery of Government (MoG) changes 9 9 DEL Budget Exchange 9 10 Provisions and contingent liabilities 9 Annex A Summary of funding variations by sub-head 11 Annex B Comparison of outturn to plans for the last three years for all control totals 22 Annex C Explanation of key terms used in the Memorandum 23 1. Executive Summary 1.1 The purpose of this memorandum is to provide an overview and analysis of the Resource, Capital and cash sought in the Supplementary, to ensure consistency with the plans set out in the 2010 Spending Review (SR10) and to compare with the Main. It also sets out changes to the and provides background information. 1.2 Key activities supported by provision in the 1.2.1 The key activities supported by provision in this, broken down by budgetary limits, are explained below. 1.2.2 The Resource DEL (Departmental Expenditure Limit) budget includes the administrative costs of running the core Department and its Network Bodies and the programme spend on areas including the Rural Development Programme for England (RDPE), waste, animal disease, health and welfare, natural environment, floods and the Rural Payments Agency (RPA) Single Payment Scheme (SPS) spend net of the corresponding European Union (EU) income. Included within the Resource DEL budgets are ring-fenced budgets for depreciation, Common Agricultural Policy (CAP) disallowance provision, Regional Development Agency funding, grants for local government, redundancy funding and the International Climate Fund.
1.2.3 The largest element of the Capital DEL budget relates to flood management. Included within the Capital DEL budget are ring-fenced budgets for Regional Development Agency funding and the International Climate Fund. The remainder of the Capital DEL budget was largely held centrally at the start of the year and has been allocated out during the year in accordance with the Department s prioritisation of capital projects. 1.2.4 The Resource AME (Annually Managed Expenditure) budget includes movements on provisions, including CAP disallowance and the Environment Agency (EA) Closed Pension Fund, as well as the resource costs of the Levy Funded Bodies, net of levy income. For, it also includes additional budgetary cover for the EA pension fund relating to a projected increase on the pension deficit; more detail is given in section 4. 1.2.5 The Capital AME budget covers the Levy Funded Bodies capital costs. 1.2.6 Non-Budget spend covers RPA scheme expenditure passed to the devolved administrations, net of the corresponding EU income. 1.3 New areas of spend and variances to the Main 1.3.1 The DEL budget falls by 33.3m (1.2 per cent) in this Supplementary. This is primarily due to the use of Budget Exchange to transfer budget cover into 2012/13. More detail on HM Treasury s Budget Exchange system is included in section 9. The Department was able to use Budget Exchange due to efficiencies made in across a number of programmes and savings made on pay related costs resulting from the timing and uptake of the voluntary exit scheme. The Department will use this budget in 2012/13 to reflect Ministers priorities. The other decreases in DEL are a result of a number of small transfers to/from other government departments, the largest of which is a transfer to the Department for Communities and Local Government for the Regional Growth Fund. 1.3.2 Within the DEL budget there has also been a transfer between Resource and Capital budgets, primarily due to a transfer of Resource to Capital within the EA for Floods and Environment Protection. At the start of the year there is uncertainty about the nature of some of EA s projects. These are initially allocated to Resource and then transferred to Capital as necessary once the Capital element of the schemes is apparent. This is partially offset by a Capital to Resource transfer within Royal Botanic Gardens (RBG), Kew. Some of RBG Kew s expenditure has been reclassified to more accurately reflect the nature of the spend. A transfer is therefore needed to bring their budget allocations into line with the best forecast of their outturn position. 1.3.3 The administration budget changes by only 0.1m (0.01 per cent). This is as a result of three small transfers to other government departments. 1.3.4 The AME budget increases by 283.1m (476.6 per cent). The increase is mainly to provide additional budgetary cover for the EA pension fund. The deficit on the EA pension fund has increased in the period from 31 March 2011 to 31 October 2011. Extra budgetary cover has therefore been included in the Supplementary based on the most up to date information available from the actuaries. 1.3.5 The Net Cash Requirement (NCR) is 448.1m (18.2 per cent) higher than the Main. This increase is primarily due to a 400m increase to cover February and March SPS payments which will not be reimbursed by the EU until 2012/13. The principle behind this increase to the NCR was agreed with HM Treasury as part of implementing the Clear Line of Sight (CLoS) changes. It is needed because there is a two month time delay between making SPS payments and receiving the reimbursement from the EU. The NCR will have to be assessed each year during the preparation of the Supplementary, but this should be the only year when a substantial increase will be needed. This is further explained in section 4.
1.3.6 Further explanations for any significant variances between this Supplementary and the Main are shown in section 4 and the table in Annex A. 1.4 Structure 1.4.1 This Supplementary reflects the restructure of Defra s from that based on Departmental Strategic Objectives to one based on Defra s Risks and Priorities. This brings the into line with the Department s Business Plan. 1.4.2 The detailed movements by line relating to the restructure are shown in Annex A. 2. The main activities and priorities for the Department 2.1 Defra is working towards three main priorities: support and develop British farming and encourage sustainable food production help to enhance the environment and biodiversity to improve quality of life support a strong and sustainable green economy, resilient to climate change 2.2 Defra s other major responsibilities are: prepare for and manage risk from animal and plant disease prepare for and manage risk from flood and other environmental emergencies 2.3 Details of these priorities and responsibilities, and the main actions being taken to meet them, can be found in the Defra Business Plan 2011-2015 using the following link: http://www.number10.gov.uk/wp-content/uploads/defra-business-plan1.pdf 3. Summary of the main spending control figures contained in the Supplementary Resource Departmental Expenditure Limit 2,297.8m; of which: o Administration 732.0m o Programme 1,565.8m Capital Departmental Expenditure Limit Resource Annually Managed Expenditure Capital Annually Managed Expenditure Non-Budget Expenditure Net Cash Requirement 388.2m 341.5m 1.0m 10.0m 2,907.1m 4. Explanation of significant changes in provision compared with the Main Main Supplementary Resource DEL 2,346.3m 2,297.8m Of which: Admin 732.1m 732.0m
4.1 The Resource DEL budget has reduced by 48.5m (2.1 per cent) since the Main. A detailed explanation, by sub-head, is given in Annex A. Apsummary of the main movements is set out below: 30.2m Resource to Capital budget transfer. Primarily due to a transfer of Resource to Capital within the EA for Floods and Environment Protection. At the start of the year there is uncertainty about the nature of some of EA s projects. These are initially allocated to Resource and then transferred to Capital as necessary once the Capital element of the schemes is apparent. This is partially offset by a Capital to Resource transfer within RBG Kew. Some of RBG Kew s expenditure has been reclassified to more accurately reflect the nature of the spend. A transfer is therefore needed to bring their budget allocations into line with the best forecast of their outturn position. 16.0m decrease due to the use of Budget Exchange to transfer budget cover into 2012/13. The Department was able to use Budget Exchange due to efficiencies made in across a number of programmes and savings made on pay related costs resulting from the timing and uptake of the voluntary exit scheme. The Department will use this budget in 2012/13 to reflect Ministers priorities. 2.3m decrease due to transfers to other government departments. Primarily a 10.0m transfer from the Department for International Development (DFID) for the International Climate Fund, offset by a 15.0m transfer to the Department for Communities and Local Government for the Regional Growth Fund. Main Supplementary Capital DEL 373.0m 388.2m 4.2 The Capital DEL budget has increased by 15.2m (4.1 per cent) since the Main. A detailed explanation, broken down by sub-head, is given in Annex A. A summary of the main movements is set out below: 30.2m Resource to Capital budget transfer as explained above. 5.0m decrease due to the use of Budget Exchange to transfer budget cover into 2012/13 as explained above. 10.0m decrease due to a transfer to the Department for International Development for the ICF. The ICF is a tri-department ring-fenced fund across Defra, DFID and Department of Energy and Climate Change. An agreement was reached for Defra to transfer Capital DEL to DFID and for DFID to return it to Defra as Resource DEL to meet a Ministerial commitment for Defra s contribution to the Cerrado Rain Forest project in Brazil. Main Supplementary Resource AME 48.7m 341.5m Capital AME 10.7m 1m 4.3 The Resource AME budget has increased by 292.8m (601.2 per cent) since the Main. A detailed explanation, broken down by sub-head, is given in Annex A. The increase is mainly to provide additional budgetary cover for the EA pension fund. The deficit
on the EA pension fund has increased in the period from 31 March 2011 to 31 October 2011. Extra budgetary cover has therefore been included in the Supplementary based on the most up to date information available from the actuaries. 4.4 The Capital AME budget reduces by 9.7m (90.7 per cent). The Capital AME figures included as part of SR10 were based on the forecast for 2010/11 at the time of loading the SR10 data to HM Treasury s Combined On-line INformation System (COINS). The position has been reassessed and a decision taken to return this element of the Capital AME budget to the Exchequer. Main Supplementary Non-Budget 5.0m 10.0m 4.5 Defra s Non-Budget increases by 5.0m (100 per cent). This budget covers RPA scheme expenditure passed to the devolved administrations, net of the corresponding EU income. A small budget is held here as the income and expenditure does not net exactly to zero due to exchange rate movements. Under the CLoS regime, Non-Budget is a control total, a breach of which would result in an Excess Vote and a qualification in the Resource Accounts. The budget has therefore been increased in this Supplementary to reflect a more prudent balance. Net Cash Requirement Main Supplementary 2,459.0m 2,907.1m 4.6 The NCR has increased by 448.1m (18.2 per cent) since the Main. The increase to the NCR is primarily due to a 400m increase to cover February and March SPS payments which will not be reimbursed by the EU until 2012/13. The principle behind this increase to the NCR was agreed with HM Treasury as part of implementing the CLoS changes. It is needed because there is a two month time delay between making SPS payments and receiving the reimbursement from the EU. HM Treasury s CLoS rules, which came into effect for, changed the way the EU reimbursement of the SPS payments are recorded. For 2010/11 and earlier, the EU income was treated as a Consolidated Fund Extra Receipt which meant that once it was received from the EU it was surrendered to HM Treasury and was not included in the Department s NCR, i.e. in respect of SPS payments, the NCR was on a gross basis. Under CLoS, the EU reimbursement is retained by Defra and used to offset expenditure, i.e. the NCR is now on a net basis and is therefore much lower than in previous years. In order to avoid exceeding the NCR for these payments, the NCR is increased in this Supplementary by raising a debtor for the outstanding EU income, which is unavoidable because of the two month delay in reimbursement. The NCR will have to be assessed each year during the preparation of the Supplementary, but this should be the only year when a substantial increase will be needed. This is because the EU income debtor will clear at the beginning of the next financial year when the Department receives the cash from the EU, therefore increasing the cash flow in that year, alleviating the need to raise the NCR next year. 5. Detailed explanation of changes in provision compared with the Main
5.1 Detailed explanations for significant variances between the Supplementary and the Main for are shown in the table in Annex A. 6. Year on year comparison of major controls 6.1 The table below shows outturn for 2008/09 to 2010/11 and plans for all the years of SR10. Details of 2008/09 to 2010/11 outturn compared to the plans for those years are shown in Annex B. m Outturn Plans 2008/09 2009/10 2010/11 2012/13 2013/14 2014/15 Resource DEL 2,411.7 2,461.3 2,375.8 2,297.8 2,231.3 2,061.6 1,958.9 Administration 756.7 740.0 740.9 732.0 642.9 602.9 571.8 Programme 1,655.0 1,721.3 1,634.9 1,565.8 1,588.4 1,458.7 1,387.1 Capital DEL 609.7 693.0 568.2 388.2 381.0 378.3 412.9 Resource AME -55.8-72.9-437.5 341.5 20.0 15.1-57.0 Capital AME 0.7 0.7 0.9 1.0 1.0 1.0 1.0 Non-Budget 81.0 51.0-0.8 10.0 10.0 10.0 10.0 6.2 Administration budgets reflect the profile of the Department s SR10 settlement. 6.3 Programme budgets reflect the profile of the Department s SR10 settlement. The slightly higher spend in 2009/10 arises due to increased utilisation of the CAP disallowance provision in that year. The budget for 2012/13 is slightly higher than that for due to the carry forward of 16.0m budget from into 2012/13 as described in section 4. 6.4 Capital budgets reflect the profile of the Department s SR10 settlement. Capital expenditure increases in 2014/15 mainly due to an increased contribution to the International Climate Fund for international forestry. 6.5 Resource AME shows a negative balance in years 2008/09 to 2010/11 due to the utilisation of two large provisions, the EA closed pension scheme (which is fairly consistent across all years) and the CAP disallowance provision (which peaks in years 2009/10 and 2010/11). The large negative figure in 2010/11 reflects the result of a Government decision to index public service pension benefits using the Consumer Prices Index rather than the Retail Prices Index. This resulted in changes to the EA s pension scheme and the EA Closed Pension Scheme provision. Positive values appear in the SR10 years due to the utilisation of the CAP disallowance reducing and the creation of other provisions, partially to cover redundancy schemes. The Resource AME Budget also includes the creation of the CAP disallowance provision which drops off in 2014/15. The spike in is mainly to provide additional budgetary cover for the EA pension fund relating to a projected increase on the pension deficit, as described in section 4. 6.6 Capital AME is relatively small and relates solely to the Levy Funded Bodies. 6.7 Defra s Non-Budget covers RPA scheme expenditure on behalf of the devolved administrations, net of the corresponding EU income.
7. Changes to the Ambit 7.1 There have been no changes to the Ambit in this Supplementary. 8. Machinery of Government (MoG) changes 8.1 The following table shows a summary of the MoG movements: Machinery of Government Changes Description Section Date of Transfer Amount m Transferring Department Receiving Department Transfer of Defra's contribution for the UK's subscription for a Space initiative called JASON 3 to the Department for Business Innovation and Skills Transfer of Programme Section F 01/04/2011 0.2 Defra BIS 8.2 No staff were transferred to BIS as a result of this MoG. 9. DEL Budget Exchange 9.1 HM Treasury s Budget Exchange system allows Departments to surrender a forecast DEL underspend in advance of the end of the financial year in return for a corresponding DEL increase in the following year. There is no scope to carry forward underspends that are not forecast in advance. Budget Exchange will only be permitted from one year to the next and will not be allowed to accumulate over time. Under this scheme, Defra is able to carry forward up to one per cent of Resource DEL and two per cent of Capital DEL. The process runs to the Supplementary s timetable, with the DEL reductions taking place in the Supplementary and any DEL increases awarded at the time of the Main in the following year. 9.2 The Department is utilising this Budget Exchange system to transfer 16.0m Resource DEL and 5.0m Capital DEL from into 2012/13. The Department was able to use Budget Exchange due to efficiencies made in across a number of programmes and savings made on pay related costs resulting from the timing and uptake of the voluntary exit scheme. The Department will use this budget in 2012/13 to reflect Ministers priorities. 10. Provisions and contingent liabilities 10.1 The main provision movement in this Supplementary is an increase in provisions to provide additional budgetary cover for the EA pension fund. The deficit on the EA pension fund has increased in the period from 31 March 2011 to 31pOctober 2011. Extra budgetary cover has therefore been included in the Supplementary based on the most up to date information available from the actuaries. 10.2 The Supplementary also includes details of all the contingent liabilities included in the Department s 2010/11 Resource Accounts. There has been one new contingent liability raised since the Main. Details are as follows: possible European Court of Justice fines relating to alleged failure to transpose the Wild Birds Directive. The potential liability is between 7.0m and 8.0m.
10.3 This memorandum has been prepared with reference to guidance in the s Manual provided by HM Treasury. The information in this memorandum has been approved by Bronwyn Hill, Accounting Officer and Permanent Secretary of Defra.
Annex A Summary of funding variations by sub-head subhead Spending in Resource DEL A B Description ME Support and develop British Farming [Main Programmes - Rural Payments Agency and CAP Disallowance] Help to enhance the environment and biodiversity [Main Programmes - Landscape and Outdoor Recreation Ongoing Activity and Rural Development Programme England] changes ME after Variation ME to m m m m m % Explanation of Variance - 352.4 352.4 352.2-0.2 0.1 Small variance less than 10m and 10%. - 427.5 427.5 409.0-18.5 4.3 The majority of this reduction relates to a transfer of budget from the core department to the EA, primarily for the Water Framework Directive (WFD). This additional budget will enable EA to deliver aspects of the WFD, including achieving good status in our water bodies and preventing deterioration, improving and creating habitats and improving fish passage, implementing, mitigating and restoring measures at lakes.
C subhead D E Support a strong and sustainable green economy [Main Programmes - Green Economy and Strategy Programme and Waste] Description ME Prepare for and manage risk from animal and plant diseases [Main Programmes Veterinary Science Team and Endemic Diseases] Prepare for and manage risk from environmental emergencies [Main Programme - Floods - Managing Flood and Erosion Risk Sustainability] - 206.9 206.9 200.7-6.2 3.0 Small variance less than 10m and 10%. changes ME after Variation ME to m m m m m % - 216.6 216.6 216.6 - - No change Explanation of Variance - -2.5-2.5 11.6 14.1 564.0 This increase is due to the alignment of the current years budget to reflect the cofunding agreement reached between EA and Welsh Government.
F G subhead H Departmental Operating Costs [Main Programmes - Group Information Communications Technology, Managing the Defra network estate] Support and develop British Farming (NDPB) (net) [Main Programme - Crops Ongoing Function] Description ME Help to enhance the environment and biodiversity (NDPB) (net) [Main Programmes - Environment Agency Sponsorship, Landscape and Outdoor Recreation Ongoing Activity] - 279.5 279.5 251.3-28.2 10.1 This reduction primarily relates to a transfer of depreciation to the EA from a centrally held budget and the Resource element of the Budget Exchange transfer into 2012/13, as explained in section 4. - 1.6 1.6 1.9 0.3 18.8 This increase relates to a transfer to the Gangmasters Licensing Authority from a centrally held budget within the core department for voluntary exits scheme costs. changes ME after Variation ME to m m m m m % Explanation of Variance - 500.4 500.4 515.1 14.7 2.9 Included within this increase is the transfer to Resource from Capital for RBG Kew, the transfer from Resource to Capital for EA (environment protection element), as explained in section 4 and the transfer to the EA for the Water Framework Directive.
I J subhead Support a strong and sustainable green economy (NDPB) (net) [Main Programme - Rural Communities Policy Unit] Prepare for and manage risk from environmental emergencies (NDPB) (net) [Main Programme - Floods - Managing Flood and Erosion Risk Sustainability] Adapting to Climate Change A Healthy Natural Environment Sustainable Consumption and Production Addressing Environmental Risk and Emergencies Description ME Championing Sustainable Development - 0.6 0.6 0.6 - - No change. - 363.3 363.3 338.8-24.5 6.7 Included within this decrease is the transfer from Resource to Capital for the EA (flood management element), as explained in section 4 and cofunding alignment explained above. 19.6-19.6 - - - - movements only. 368.6-368.6 - - - - movements only. 140.7-140.7 - - - - movements only. 238.0-238.0 - - - - movements only. changes ME after Variation ME to m m m m m % Explanation of Variance 3.4-3.4 - - - - movements only.
A Thriving Farming and Food Sector A Sustainable, Secure and Healthy Food Supply 97.9-97.9 - - - - movements only. 4.4-4.4 - - - - movements only. Strong Rural Communities 52.7-52.7 - - - - movements only. A Respected Department 284.4-284.4 - - - - movements only. Rural Payments Agency EC Funded Rural Payments Agency Running Costs Rural Payments Agency Other 7.0-7.0 - - - - movements only. 173.9-173.9 - - - - movements only. 44.0-44.0 - - - - movements only. Forestry Commission 45.6-45.6 - - - - movements only. A Healthy Natural Environment (NDPB) (Net) Addressing Environmental Risk and Emergencies (NDPB) (Net) A Thriving Farming and Food Sector (NDPB) (Net) Strong Rural Communities (NDPB) (Net) 500.5-500.5 - - - - movements only. 363.4-363.4 - - - - movements only. 1.6-1.6 - - - - movements only. 0.6-0.6 - - - - movements only. Resource DEL Total 2,346.3-2,346.3 2,297.8-48.5 2.1
Estimat e subhead Spending in Resource AME K L M N Description ME Support and develop British Farming [Main Programme - CAP Disallowance] Help to enhance the environment and biodiversity [Main Programme - Environment Agency Sponsorship] Support a strong and sustainable green economy [Main Programme - Rural Communities Policy Unit] Departmental Operating Costs changes ME after Variation ME to m m m m m % Explanation of Variance - 42.0 42.0 52.0 10.0 23.8 This relates to an increase to the AME budget for the RPA to provide budgetary cover for unrealised foreign exchange movements related to EU funded scheme payments. - -52.4-52.4-48.4 4.0 7.6 Small variance less than 10m and 10%. - -0.3-0.3-0.3 - - No change. - 50.0 50.0 48.8-1.2 2.4 Small variance less than 10m and 10%.
O subhead P Q Support and develop British Farming (NDPB) (net) [Main Programme - Livestock Ongoing Function] Description ME Help to enhance the environment and biodiversity (NDPB) (net) [Main Programmes - Environment Agency Sponsorship, Landscape and Outdoor Recreation Ongoing Activity] Prepare for and manage risk from environmental emergencies (NDPB) (net) [Main Programme - Floods - Managing Flood and Erosion Risk Sustainability] A Healthy Natural Environment - -1.3-1.3-1.3 - - No change. changes ME after Variation ME to m m m m m % - 10.7 10.7 10.7 - - No change. Explanation of Variance - - - 280.0 280.0 n/a This reflects the increase to the AME budget to provide additional budgetary cover for the EA pension fund relating to the projected increase on the pension deficit, as explained in section 4. 33.4-33.4 - - - - movements only. A Respected Department 50.0-50.0 - - - - movements only.
Rural Payments Agency Other 42.0-42.0 - - - - movements only. Forestry Commission -2.8 2.8 - - - - movements only. A Healthy Natural Environment (NDPB) (net) A Thriving Farming and Food Sector (NDPB) (net) -72.6 72.6 - - - - movements only. -1.3 1.3 - - - - movements only. Resource AME Total 48.7-48.7 341.5 292.8 601.2 subhead Description ME Spending in Resource Non-Budget R Support and develop British Farming [Main Programme - Rural Payments Agency] Rural Payments Agency EC Funded changes ME after Variation ME to m m m m m % Explanation of Variance - 5.0 5.0 10.0 5.0 100.0 This increase is needed to provide budgetary cover for the difference between scheme expenditure by the devolved administrations and the subsequent reimbursement from the EU. This difference is primarily as a result of exchange rate movements, as explained in section 4. 5.0-5.0 - - - - movements only.
Resource Non-Budget Total 5.0-5.0 10.0 5.0 100.0 Resource Total 2,400.0-2,400.0 2,649.3 249.3 10.4 subhead Description ME Spending in Capital DEL A Support and develop British Farming [Main Programmes - Food and Environment Research Agency, Rural Payments Agency] B Help to enhance the environment and biodiversity [Main Programme - New Waterways Charity Project] changes ME after Variation ME to m m m m m % - 5.3 5.3 5.3 - - No change. Explanation of Variance - 21.3 21.3 23.7 2.4 11.3 This relates to small budget transfers to CEFAS to cover estates related costs and scientific equipment for the Marine programme and a small transfer from Resource to Capital to deliver the Catchment Sensitive Farming programme.
C D subhead E Support a strong and sustainable green economy [Main Programme - Green Economy and Strategy Programme] Prepare for and manage risk from animal and plant diseases [Main Programme - Animal Health and Veterinary Laboratories Agency] Description ME Prepare for and manage risk from environmental emergencies [Main Programme - Floods - Managing Flood and Erosion Risk Sustainability] - 18.0 18.0 8.0-10.0 55.6 This reflects the transfer of Capital budget to the Department for International Development for the International Climate Fund, as explained in section 4. - 12.8 12.8 12.8 - - No change. changes ME after Variation ME to m m m m m % Explanation of Variance - -9.5-9.5-9.0 0.5 5.3 Small variance less than 10m and 10%.
F H Departmental Operating Costs Help to enhance the environment and biodiversity (NDPB) (net) [Main Programme - Environment Agency Sponsorship] - 28.8 28.8 14.6-14.2 49.7 This reduction includes the Capital element of the Budget Exchange transfer into 2012/13, as explained in section 4, a transfer to RBG Kew for a digital media strategy and a transfer from the core department central budget to the network bodies for estates related costs. - 25.8 25.8 42.8 17.0 65.9 Included within this increase is the transfer to Resource from Capital for RBG Kew, the transfer from Resource to Capital for the EA (environment protection element), as explained in section 4 and a transfer to RBG Kew for a digital media strategy. subhead J Description ME Prepare for and manage risk from environmental emergencies (NDPB) (net) [Main Programme - Floods - Managing Flood and Erosion Risk Sustainability] changes ME after Variation ME to m m m m m % Explanation of Variance - 270.5 270.5 290.0 19.5 7.2 The majority of this increase relates to the transfer from Resource to Capital for the EA (flood management element), as explained in section 4.
subhead Adapting to Climate Change A Healthy Natural Environment Sustainable Consumption and Production Addressing Environmental Risk and Emergencies A Thriving Farming and Food Sector 10.0-10.0 - - - - movements only. 15.8-15.8 - - - - movements only. 2.0-2.0 - - - - movements only. 6.3-6.3 - - - - movements only. 0.2-0.2 - - - - movements only. Strong Rural Communities 6.0-6.0 - - - - movements only. A Respected Department 45.5-45.5 - - - - movements only. Rural Payments Agency Running Costs 2.1-2.1 - - - - movements only. Forestry Commission -11.0 11.0 - - - - movements only. A Healthy Natural Environment (NDPB) (net) Description ME Addressing Environmental Risk and Emergencies (NDPB) (net) 34.6-34.6 - - - - movements only. changes ME after Variation ME to m m m m m % Explanation of Variance 261.0-261.0 - - - - movements only.
A Thriving Farming and Food Sector (NDPB) (net) 0.5-0.5 - - - - movements only. Capital DEL Total 373.0-373.0 388.2 15.2 4.1 subhead Description ME Spending in Capital AME O Support and develop British Farming (NDPB) (net) [Main Programme - Livestock Ongoing Function] A Thriving Farming and Food Sector (NDPB) (net) changes ME after Variation ME to m m m m m % Explanation of Variance - 10.7 10.7 1.0-9.7 90.7 This reflects the decrease to the Capital AME budget for the Levy Funded Bodies to bring the budget in line with the latest forecasts, as explained in section 4. 10.7-10.7 - - - - movements only. Capital AME Total 10.7-10.7 1.0-9.7 90.7 Capital Total 383.7-383.7 389.2 5.5 1.4
Annex B Comparison of outturn to plans for the last three years for all control totals m Plans Outturn Variance % Variance 2008/09 2009/10 2010/11 Plans Outturn Variance % Variance Plans Outturn Variance % Variance Resource DEL 2,464.4 2,411.7 52.7 2.1 2,550.5 2,461.3 89.2 3.5 2,389.9 2,375.8 14.1 0.6 Administration 768.5 756.7 11.8 1.5 780.7 740.0 40.7 5.2 761.1 740.9 20.2 2.7 Programme 1,695.9 1,655.0 40.9 2.4 1,769.8 1,721.3 48.5 2.7 1,628.8 1,634.9-6.1 0.4 Capital DEL 618.8 609.7 9.1 1.5 719.2 693.0 26.2 3.6 586.9 568.2 18.7 3.2 Resource AME -65.5-55.8-9.7 14.8-76.0-72.9-3.1 4.1-91.1-437.5 346.4 380.2 Capital AME 0.2 0.7-0.5 250.0 0.5 0.7-0.2 40.0 10.7 0.9 9.8 91.6 Non-Budget - 81.0-81.0 n/a - 51.0-51.0 n/a - -0.8 0.8 n/a
Annex C - Explanation of key terms used in the Memorandum Administration Budget A HM Treasury control on the resources consumed directly by departments and agencies/ndpbs that forms part of the DEL. Includes things such as staff costs, resource expenditure on accommodation, utilities and services etc where they are not directly associated with front line service delivery. Annually Managed Expenditure (AME) This is spending that is generally less predictable and controllable than expenditure in DEL. It is a HM Treasury budgetary control that is reviewed twice a year with Departments. Defra has very little AME expenditure, mainly adjustments to the Environment Agency closed pension fund and Levy Funded Body Resource and Capital costs. Ambit The Ambit describes the activities for which provision sought in the will be used. Separate ambits are required for both expenditure and income in each budgetary category included in the (DEL, AME and Non-Budget). Budget Exchange A mechanism which allows departments to surrender an underspend in advance of the end of the financial year in return for a corresponding increase in the following year, subject to a prudent limit. Combined On-line INformation System (COINS) Database A HM Treasury database holding public expenditure data (plans and outturn) for a number of years. Consolidated Fund Extra Receipts (CFERs) Income, or related cash, that passes through a department s accounts but may not be retained by the department and is surrendered to the Consolidated Fund. Departmental Expenditure Limit (DEL) This is spending that is within the Department s control and can therefore be planned over an extended period. It is a HM Treasury budgetary control that is set for a three or four year period. Examples include administration costs, payments for goods and services, CAP scheme payments and non-cash costs such as depreciation. A statement of how much money the Government needs in the coming financial year, and for what purpose(s), by which parliamentary authority is sought for the planned level of expenditure by a government department. Excess Vote The means by which excess expenditure, or otherwise unauthorised expenditure, of cash, Capital or Resource, is regularised through an additional Vote by Parliament. Grant in Aid Financing payment made by a department to an NDPB or other arms length body. Main The means through which departments seek parliamentary approval for their spending plans for the year ahead. Presented to Parliament within five weeks of the Budget Statement. Net Cash Requirement (NCR)
The limit voted by Parliament reflecting the maximum amount of cash that can be released from the Consolidated Fund to a department in support of expenditure in its. In the case of a negative NCR, the department must generate a surplus of at least that amount. Non-Budget Income and expenditure that passes through a department s books, but is not included in DEL or AME. Spending Review (SR) A cross government review of departmental aims and objectives and analysis of spending programmes. Results in the allocation of multi-year budgetary limits. Supplementary The means by which departments seek to amend parliamentary authority provided through Main s by altering the limits on Resource, Capital and/or cash or varying the way in which provision is allocated. Normally presented in February each year.