main estimate 2016-17 – explanatory memorandum · pdf file · 2016-05-25 }l...

~)~: ~ Department for Communities and Local Government

Clive Betts MP Chairman, Communities and Local Government Select Committee House of Commons London SW1A OAA

The Rt Hon Greg Clark MP Secretary of State for Communities and Local Government

Department for Communities and Local Government 41

h Floor, Fry Building 2 Marsham Street London SW1 P 4DF

Tel: 0303 444 3438 E-Mail: [email protected]

www.gov.uk/dclg

}L{ May 2016

Main Estimate 2016-17 - Explanatory Memorandum

Please find attached the Explanatory Memorandum from the Department for Communities and Local Government in relation to the Main Estimate 2016-17. My department would of course be happy to answer any questions you may have about the Estimate.

THE RT HON GREG CLARK MP

www.gov.uk/dclg

Department for Communities and Local Government

EXPLANATORY MEMORANDUM

Main Estimate 2016/17

Introduction

1. The Main Estimate 2016/17 sets out the resource and cash requirements to support the functions of both the Department for Communities and Local Government’s (DCLG) main programmes and the Department's Local Government programmes (LG).

2. The purpose of this memorandum is to provide the Select Committee with an explanation of how the resources and cash sought in the Main Estimate will be applied to achieve the Department’s objectives.

3. As this is the first Estimate of a new Spending Review period, there is less focus on changes from the previous estimates, and more emphasis on the delivery outcomes of new programmes.

Strategic Overview

4. The Department for Communities and Local Government is responsible for delivering the Government’s priorities on housing, devolution. and transforming local government and public services.

5. The strategic objectives for the Department in this Parliament are: 1. Driving up housing supply 2. Increasing home ownership 3. Devolving powers and budgets to boost local growth in England 4. Supporting strong communities with excellent public services

Strategic Objective 1: Driving up housing supply

6. The Government’s ambition is to deliver 1 million new homes over the next 5 years. The Department has an ambitious plan to build affordable homes, increase housing supply by improving the planning process, bringing forward public sector land, and helping small builders.

Strategic Objective 2: Increasing home ownership

7. The Government want more people to have the security and stability of owning a home of their own. The Department are delivering affordable home ownership with Starter Homes and extending Right to Buy to housing association tenants. We are also helping first-time buyers with a dedicated Help to Buy ISA which offers a 25% bonus, up to a maximum of £3,000, on the money they save.

Strategic Objective 3: Devolving powers and budgets to boost local growth in England

8. The Government want to see a shift in power from central government to local government, with decentralisation bringing power closer to local communities. The Department is working with cities and towns to support devolution and local growth.

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Strategic Objective 4: Supporting strong communities with excellent public services.

9. The Department is working with local authorities as they support communities across the country with services as wide ranging as children’s services, Troubled Families, commissioning adult social care provision, and dealing with refuse and recycling.

Summary Budget – Spending Review 2015

The Spending Review in autumn 2015 set the overall Department budget for the rest of the Parliament (until 2019/20).

SR budget control totals £m

2016-17 2017-18 2018-19 2019-20

DCLG

Resource DEL Administration 292

1,062

4,169

251 238

1,104 1,037

3,949 4,400

223

942

4,063

Resource DEL Programme

Capital DEL

LG Resource DEL Programme 9,604 7,439 6,148 5,414

10. The Spending Review settlement for the Department for Communities and Local Government (DCLG) means:

more than £20 billion of gross capital investment over the next 5 years to support housing and local growth

doubling the housing budget from 2018/19 to deliver 400,000 new homes

further spending on targeted initiatives that tackle homelessness and support the victims of domestic violence

overall resource savings of 29% by 2019/20 through better financial management and further efficiency

The Spending Review settlement for local government announced an increase in total local government resources in cash terms from £40.3 billion in 2015-16 to £40.5 billion in 2019-20, based on estimates from the Office for Budget Responsibility. This represents an expected fall of an average of just 1.7% per year in real terms.

11. Further information on the Department’s Spending Review settlement is available here: https://www.gov.uk/government/news/department-for-communities-and-local-governments-settlement-at-the-spending-review-2015

Key Main Estimate Changes to the Spending Review Settlement

12. The Spending Review 2015 set the Department’s indicative budget allocation for the Parliament, but it is the Main Estimate that formally allocates budgets to the Department.

13. Since the Spending Review concluded in late autumn 2015, there have been a number of changes and reallocations. The table below describes the differences between the Budgets at the Spending Review (SR) and the budgets as at the Main Estimate.

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https://www.gov.uk/government/news/department-for-communities-and-local-governments-settlement-at-the-spending-review-2015

https://www.gov.uk/government/news/department-for-communities-and-local-governments-settlement-at-the-spending-review-2015

Budget changes from SR to Main Estimate (£m) 2016-17 2017-18 2018-19 2019-20

SR 292 251 238 223

Admin Change -6 -6 -5 -5

Mains 286 245 233 218

SR 1,062 1,104 1,037 942

DCLG RDEL Change 1,428 1,511 1,023 1,046

Mains 2,490 2,615 2,060 1,988

SR 4,169 3,949 4,400 4,063

CDEL Change 1,372 1,199 932 363

Mains 5,541 5,148 5,332 4,426

SR 9,604 7,439 6,148 5,414

LG RDEL Change -1,398 -1,558 -1,114 -1,118

Mains 8,206 5,881 5,034 4,296

14. They key changes in the table above are:

The transfer of the Fire programmes to the Home Office in the Administration budgets (paragraph 18)

The transfer of Local Growth funding from other Government Departments to DCLG in Capital DEL (paragraph 19)

The transfer of Local Government DEL funding to DCLG in both DCLG Resource DEL and LG Resource DEL (paragraph 20)

15. The changes to our budgets at Main Estimates can be categorised as follows:

Budget Exchange The Budget Exchange transfers agreed at the 2015/16 Supplementary Estimate have been transferred into the Department’s budget for 2016/17.

Machinery of Government A Machinery of Government transfer is where a programme or team moves from one Department to another. There should be no impact on the Department's overall budget position (as both the resource and the outputs move on) but it will affect the budget total.

Budget Cover Transfers A Budget Cover Transfer moves cash from one Department to another to fund (or contribute to) a programme.

16. Further commentary on the main changes since the Spending Review is provided below and a detailed breakdown is set out in Annex D.

17. The Department completed the following Budget Exchanges at the 2015/16 Supplementary Estimate, and so receives this money back in 2016/17:

£60 million of funding to support delivery of key government programmes, including Troubled Families was re-profiled into 2016/17. This funding will allow us to meet the programme’s overall delivery targets of supporting 400,000 families.

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Affordable Homes Programme (£185 million): This funding will provide cover for existing Affordable Housing financial commitments in 2016/17. This resulted from providers reviewing their business plans and re-profiling their delivery plans over the programme period. It does not affect overall programme delivery.

Single Land Programme (£50 million): Land receipts achieved £50 million more than the 2015/16 Main Estimate budget. We have rolled additional land receipts into 2016/17 to mitigate potential income risk in the housing market. This is consistent with our approach in previous years, and enables the Department to re-invest in the Land programme.

Greater Manchester Housing Investment Fund (£33 million): A re-profile of funding into 2016/17to align funding with the latest delivery profile

18. There is one Machinery of Government change where the Department’s Fire programmes have been transferred to the Home Office as announced on 5 January 2016. DCLG have retained responsibility for the Regional Control Centres.

Fire MoG (£’000) 2016/17 2017/18 2018/19 2019/20

Admin 6,131 5,715 5,180 4,860

RDEL Programme 93,087 92,478 97,060 78,327

CDEL Programme 7,836 8,302 2,691 9,743

Total 107,054 106,495 104,931 92,930

19.There are a number of Budget Cover Transfers both to and from other Government departments. A summary is attached as Annex D. The main changes to the budgets agreed at the Spending Review are as follows:

Receipt of £1,023 million of Capital funding from Department for Transport (£893 million) and the Department for Business Innovation and Skills (£130 million) for the Local Growth Fund. Later years’ funding (beyond 2016-17) will transfer at subsequent Estimates.

Receipt of £10 million Resource DEL from the Department for Business Innovation and Skills to fund part of the core funding for Local Enterprise Partnerships.

20. There are several transfers between LG DEL and DCLG DEL (all Resource DEL), including:

Transfer of New Homes Bonus funding to DCLG DEL for the new spending review period (£1,275 million, £1,400 million, £900 million, £900 million) to bring New Homes Bonus funding together in one place.

£31 million from DCLG DEL to part fund the transitional grant announced as part of the final Local Government Finance Settlement. Additional funding from the Reserve to support the Local Government Finance Settlement will be drawn down at the 2016/17 Supplementary Estimate.

Devolution deal funding has transferred from LG DEL to DCLG DEL (£141.5 million in 2016-17 and 2017-18 and £202 million in the remaining years). There is further devolution funding transferring from Department for Transport (£2.25 million, £2.25 million, £3 million, £3.75 million) and the Department for Business Innovation and Skills (£4.5 million).

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Funding for the Controlling Migration fund (£25 million) has transferred from LG DEL.

21. Budget changes: Annex A sets out the changes to our overall DEL control totals for DCLG DEL and LG DEL as compared against the Spending Review position. Our revised control totals will be signed off by Jacinda Humphrey and Nick Burkitt (deputy for Matthew Style) in line with their responsibility for DCLG and LG DEL respectively.

22. Local Government DEL received an additional £41 million of funding at Budget 2016 for Devolution Deals. This is being transferred to DCLG DEL alongside other Devolution funding to bring these budgets together in one place. No additional funding was announced for Main DEL at Budget 2016.

Net Cash Requirement

Budgetary control £m

Net Cash Requirement 19,333

23. The Department’s Net Cash Requirement for 2016/17 is £19.3 billion and includes contingency of £0.6 billion to mitigate the risk of any unforeseen cash payments. This will ensure that the Department does not breach its cash limit in 2016/17.

Ambit

24. The Department’s Ambit has been revised for the Spending Review requirements. The new version is available in the Department’s Main Estimate.

Approval of Memorandum

25. This Memorandum has been prepared in accordance with guidance in the Estimates Manual provided by HM Treasury and that found on the House of Commons website. This has been approved by the Department’s Principal Accounting Officer, Melanie Dawes.

Melanie Dawes Accounting Officer Permanent Secretary of Department for Communities and Local Government

List of Annexes:

Annex A - Summary table of 2016/17 programme budgets by estimate line Annex B - Summary of programme budgets over the Spending Review Annex C - Narrative of key programmes by estimate line Annex D - Budget Cover Transfers and Machinery of Government Changes

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Annex A – Summary Table of Programme Budgets by Estimate Line

Note: Funding allocations beyond 2016/17 are only indicative and are subject to change at a subsequent Estimate and so we have only shown Estimate line totals.

DCLG DEL - Resource – Admin

Programmes

OSCAR at Main

Estimates

Supplementary Estimates

2016/17 2015/2016

Administration 285.9 294.6

DCLG DEL - Depreciation – Admin

Estimate Line Programmes

OSCAR at Main

Estimates


2016/17 2015/2016

Housing & Planning Housing & Planning Depreciation 1.0 0.8

DCLG Staff, Buildings and

Infrastructure Cost

Central Depreciation

15.6 15.9

Local Government & Public Services

(ALB)

Local Government & Public Services (ALB) Depreciation

0.4 0.4

Housing & Planning (ALB)

Housing & Planning (ALB) Depreciation

3.0 2.4

TOTAL 20.0 19.5

DCLG DEL - Resource - Programme


OSCAR at Main

Estimates


2016/17 2015/2016


Community Rights and Integration 18.1 19.2

GLA Settlement 0.4 4.5

Public Service Transformation 0.0 112.7

Weekly Collection Support Scheme 0.0 5.2

Valuation Office Agency 160.9 159.7

Flooding Support 0.7 248.4

UK Holocaust Memorial Foundation 0.3 0.7

Local Authority Fraud 0.0 10.0

Other Local Govt and Public Services 34.0 13.7

Sub-total 214.4 574.1

Housing & Planning

New Homes Bonus 1,485.0 1,167.6

Housing Strategy 1.6 7.8

Preventing Homelessness 44.0 35.3

Private Housing Initiative - Housing 192.1 184.2

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Troubled Families

Decentralisation and Local Growth

Research, Data and Trading Funds

DCLG Staff, Buildings and Infrastructure

Costs

Departmental Unallocated Provision


Other Housing (N) 22.3 17.4

Planning 28.1 19.6

Sub-total 1,773.1 1,431.9

Troubled Families 230.0 72.8

Sub-total 230.0 72.8

Regional Growth Fund 1.0 31.1

INTERREG 2.1 2.2

Coastal Communities - Expenditure 0.0 7.4

Other (Decentralisation & Local Growth) 0.0 5.2

Local Growth Fund & Cities 153.8 6.8

Local Enterprise Partnerships 20.0 20.0

Decentralisation and Local Growth Depreciation

0.0 -7.2

176.9 65.5

Queen Elizabeth II Conference Centre -1.8 -1.7

ERDF Gains and Losses 28.0 63.4

Research and Data 9.9 10.4

Sub-total 36.1 72.1

DCLG Other 2.5 1.8

Sub-total 2.5 1.8

Departmental Unallocated Provision 125.8 0.0

Sub-total 125.8 0.0

HCA: Housing Strategy 7.0 9.0

Other (ALB) -75.6 -74.7

Housing & Planning (ALB) Depreciation 31.0 0.0

Sub-total -37.6 -65.7

TOTAL 2,521.1 2,152.4

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DCLG DEL - Capital


OSCAR at Main

Estimates


2016/17 2015/2016


Community Rights, Integration and Big Society

0.0 1.0

UK Holocaust Memorial Foundation 0.0 1.0

GLA Settlement 447.8 734.1

Sub-total 447.8 736.1

Housing & Planning

Buildings for the Future 0.0 0.1

Preventing Homelessness 25.0 0.0

Manchester Housing Fund 108.9 7.0

Right to Buy 32.0 42.0

Planning Inspectorate 0.5 0.8

Other Housing & Planning 10.0 0.0

Right to buy receipts 0.0 -2.1


Decentralisation & Local Growth

Coastal Communities - Expenditure 0.0 31.1

Local Growth Fund & Cities 1,789.6 1,280.0

Regional Growth Fund 0.0 31.8

Sub-total 1,789.6 1,342.9

Research, Data & Trading Funds

Research and Data 6.4 5.9

Sub-total 6.4 5.9

DCLG Staff, Buildings and Infrastructure

Costs

Capital 6.8 4.7

Sub-total 6.8 4.7

Departmental Unallocated Provision

Departmental Unallocated Provision 12.5 0.0

Sub-total 12.5 0.0


HCA - Affordable Housing Programme, of which;

HCA - National Affordable Housing 0.0 15.0

HCA - Kickstart 0.0 -1.5

HCA - Affordable Housing (Commitments) & Shared Ownership

459.4 173.9

HCA - Affordable Housing Guarantee 35.0 28.2

HCA- Rent to Buy 2.2 1.2

HCA - Short Term Housing Fund, of which;

HCA- Builder's Finance Fund 173.5 42.3

HCA - Custom Build 0.0 2.5

HCA - Get Britain Building -39.0 -132.2

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(ALB)

HCA - Long Term Housing Fund, of which;

HCA- Local Infrastructure Fund 290.6 109.3

HCA -Other 4.0 11.6

HCA- Help to Buy (including First Buy) 1,629.0 1,509.7

HCA- Build to Rent 245.1 58.7

HCA-Public Sector Land 179.7 41.7

HCA- Estate Regeneration 59.6 1.4

HCA- Housing Zones 0.0 2.7

HCA-City Deals 15.5 8.3

HCA- Direct Commission Fund 23.1 0.0

HCA- Property & Regeneration -16.4 -19.4

Ebbsfleet Development Corporation 39.1 0.1

Other Housing & Planning (ALB) 0.5 0.1

Sub-total 3,100.8 1,853.6

Local Govt & Public Services (ALB) Other

0.4 0.3

Sub-total 0.4 0.3

TOTAL 5,540.7 3,991.0

Local Government DEL - Resource

Estimate Line

Programmes OSCAR at

Main Estimates

Supplementary Estimate

2016/17 2015/2016

Revenue Support Grant 7,205.3 9,532.8

Sub-total 7,205.3 9,532.8

Other Grants

and Payments

Localising Council Tax New Burdens 0.0 12.5

Baseline adjustment to surrender for Police CT Freeze grant

6.9 0.0

Council Tax Freeze Grant for 15-16 0.0 120.0

PFI Joint Services Centres 27.8 27.8

Business Rate Reliefs 470.0 533.9

New Homes Bonus Adjustment 0.0 32.4

LG DEL Contingency / data sharing costs 0.0 5.0

City of London Offset 11.1 0.0

Dilnot & Deferred Payments 0.0 285.0

Adult Social Care (Better Care Fund) 0.0 0.0

SDLT 60.0 0.0

Rural Fund 80.5 0.0

Transitional Grant 90.0 0.0

Independent Living Fund 176.9 140.1

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Localising Council Tax Admin Subsidy 77.0 67.7

Sub-total 1,000.3 1,224.4

Business Rate

Retention

Safety Net 0.0 1.4

Sub-total 0.0 1.4

TOTAL 8,205.7 10,758.6

DCLG & Local Government AME – Resource


OSCAR at Main

Estimates


2016/17 2015/2016

Housing & Planning

Property Searches Litigation 0.0 3.0

NewBuy 0.0 210.1

Planning Inspectorate 0.2 0.2

Sub-total 0.2 213.3

DCLG Staff, Buildings and

Infrastructure Costs

Central Administration Provisions

-3.1 2.1

Sub-total -3.1 2.1

Research, Data and Trading Funds

ERDF write offs and losses 8.1 8.1

Sub-total 8.1 8.1


HCA Get Britain Building 79.3 0.0

HCA: Other 6.6 0.0

HCA: Help to Buy 240.0 -5.0

HCA: Single Land Programme 83.0 80.0

Ebbsfleet Development Corporation

1.5 0.2



(ALB)

The Valuation Tribunal Service 0.9 0.5

The Commission for Local Administration in England

1.3 1.0

Sub-total 2.1 1.5

Business Rates Retention

Local Share 11,729.0 12,144.7

Deficit on Collection 323.1 0.0

Sub-total 12,052.1 12,144.7

NNDR Outturns NNDR Outturn Adjustments 300.0 68.4


TOTAL 12,769.8 12,513.3

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DCLG & Local Government AME – Capital


OSCAR at Main

Estimates


2016/17 2015/2016

Stock Transfer 0.0 207.0

Sub-total 0.0 207.0

TOTAL 0.0 207.0

Housing & Planning

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Annex B - Summary of programme budgets over the Spending Review

DCLG DEL - Resource – Admin

Estimate Line

OSCAR at Main

Estimates

Spending Review Indicative Allocations

2016/17 2017/18 2018/19 2019/20

Administration 285.9 245.3 232.8 218.1

DCLG DEL - Depreciation – Admin

Estimate Line

OSCAR at Main

Estimates


2016/17 2017/18 2018/19 2019/20

Administration 20.0 20.0 20.0 20.0

DCLG DEL - Resource - Programme

Estimate Line

OSCAR at Main

Estimates


2016/17 2017/18 2018/19 2019/20

Local Government & Public Services 214.4 209.2 208.4 181.1

Housing & Planning 1,773.1 1,972.7 1,420.3 1,383.1

Troubled Families 230.0 180.0 180.0 180.0

Decentralisation & Local Growth 176.9 150.4 170.1 171.2

Research, Data & Trading Funds 36.1 35.7 28.5 18.3

DCLG Staff, Buildings & Infrastructure Costs 2.5 2.5 2.5 2.5

Departmental Unallocated Provision 125.8 85.7 78.6 56.2

Housing & Planning (ALB) -37.6 49.6 110.1 1.1

2,521.1 2,685.6 2,198.6 1,993.4

DCLG DEL – Capital

Estimate Line

OSCAR at Main

Estimates

Spending Review

2016/17 2017/18 2018/19 2019/20 2020/21

Local Government & Public Services 447.8 372.3 63.1 70.1 47.2

Housing & Planning 176.4 143.5 196.5 22.5 4.5

Decentralisation & Local Growth 1,789.6 1,197.5 977.1 975.4 1,317.9

Research, Data & Trading Funds 6.4 6.0 6.0 5.8 0.0

DCLG Staff, Buildings & Infrastructure Costs 6.8 13.2 10.7 2.4 3.5

Departmental Unallocated Provision 12.5 -28.3 -126.0 -117.9 73.0

Housing & Planning (ALB) 3,100.8 3,443.5 4,204.3 3,467.7 4,303.8

Local Government & Public Services (ALB) 0.4 0.6 0.2 0.2 0.2

5,540.7 5,148.2 5,331.8 4,426.1 5,750.0

Local Government DEL - Resource

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Estimate Line

OSCAR at Main

Estimates

Spending Review

2016/17 2017/18 2018/19 2019/20

Revenue Support Grant 7,205.3 5,002.8 3,593.3 2,173.1

Other Grants and Payments 1,000.3 844.9 1,390.5 2,072.7

Business Rate Retention 0.0 33.6 50.0 50.0

8,205.7 5,881.3 5,033.7 4,295.7

DCLG & Local Government AME – Resource

Estimate Line

OSCAR at Main

Estimates

Spending Review

2016/17 2017/18 2018/19 2019/20

Housing & Planning 0.2 0.2 0.2 0.2

DCLG Staff, Buildings & Infrastructure Costs -3.1 -2.3 -0.7 -1.2

Research, Data and Trading Funds 8.1 8.1 8.1 8.1

Housing & Planning (ALB) 410.4 532.9 643.5 711.2

Local Government & Public Services (ALB) 2.1 2.4 2.2 2.2

Business Rates Retention 12,052.1 12,628.0 13,000.0 13,422.0

NNDR Outturns 300.0 0.0 0.0 0.0

12,769.8 13,169.2 13,653.3 14,142.4

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Annex C – Narrative of key Programmes by Estimate Line

We have agreed a breakdown by estimate line for 2016/17. Funding allocations beyond 2016/17 are only indicative and are subject to change at a subsequent Estimate and so we have only shown Estimate line totals.

DCLG Resource DEL - Administration

Administration –The Department’s Administration budget reduces over the course of the 2015 Spending Review.

DCLG Resource DEL - Programme

Estimate Line – Local Government & Public Services

Valuation Office Agency – The VOA budget is subject to annual negotiation and agreement between DCLG and HMRC. This funding supports the Department’s priorities including delivery of a revaluation in 2017, preparing for the introduction of the revised appeal arrangements for business rate valuations, and dealing with appeals against business rate and council tax valuations.

Flooding Support – This provides funding to lead local flood authorities and protects, in real terms, the funding for lead local flood authorities, and the funding for those authorities to act as statutory consultees in planning sustainable drainage systems. The figures for 2015/16 include the cross Government funding for responses to the flooding in December 2015. Further resources to cover on-going costs in 2016/17 will be obtained at the Supplementary Estimate.

Further information on the programme can be found at:

https://www.gov.uk/government/speeches/local-government-finance-settlement

Other Local Government & Public Services – This include the DCLG DEL contribution to the Local Government Finance Settlement (see Annex D) as well as new burden funding for local authorities to compensate for council tax forgone due to the national council tax discount scheme for family annexes.

Estimate Line – Housing and Planning

New Homes Bonus – The Government will consult on reforms to the New Homes Bonus to provide greater encouragement for house building. This supports the plan for local authorities to retain the New Homes Bonus by 2020.

Preventing Homelessness – The Spending Review announced central government funding for homelessness programmes of £139 million to 2019/20. This line includes the transfer of the Temporary Accommodation Management Fee from DWP from 2017/18 onwards. This represents new Government measures to help tackle homelessness.


https://www.gov.uk/government/news/radical-package-of-measures-announced-to-tackle-homelessness

Other Housing – This is made up of small new burdens placed on local authorities by changes in the legislative environment, as well as providing funding for key policies, including Garden Cities.

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https://www.gov.uk/government/speeches/local-government-finance-settlement



Planning – This is made up of new burdens placed on local authorities by changes in the planning system.

Estimate Line – Troubled Families

Troubled Families – 2015/16 was the first year of the expanded Troubled Families programme that will reach up to an additional 400,000 troubled families. Building on the success of the previous programme, it will reach families with a broader range of problems – including families with younger children, affected by domestic violence and abuse and where mental and physical health problems are prevalent. As discussed in the Supplementary Estimate Explanatory Memorandum, £50 million has been transferred from 2015/16 to 2016/17.

Further information on the expanded programme can be found at:

https://www.gov.uk/government/news/troubled-families-programme-expanded-to-help-younger-children

Estimate Line – Decentralisation and Local Growth

Local Growth Fund & Cities – The Chancellor’s Budget 2016 included 5 new and extended devolution deals, which transferred additional funding to the Department. Funding has transferred from LG DEL to DCLG DEL to administer these deals (£141.5 million in 2016-17 and 2017-18 and £202 million in the remaining years).

Local Enterprise Partnerships – Local Enterprise Partnerships are jointly funded with the Department for Business, Innovation & Skills. Funding has been awarded for 2016/17. Funding for future years will be confirmed at a subsequent Estimate.

Coastal Communities – The Coastal Communities programme is funded via the HM Treasury Reserve and allocations will be made at the Supplementary Estimate.

Estimate Line – Research, Data and Trading Funds

Queen Elizabeth II Conference Centre – This is the expected surplus from running the Queen Elizabeth II Conference Centre.

Estimate Line – Departmental Unallocated Provision

Departmental Unallocated Provision – This consists of programme spend that was not contractually committed and had not been allocated to specific programmes at the time of preparing the Main Estimate. The Secretary of State is approving allocations from this funding for specific programmes. This will be formally reflected at the 2016/17 Supplementary Estimate.

DCLG Capital DEL

Estimate Line –Local Government & Public Services

UK Holocaust Memorial Foundation – Following the Prime Minister’s Holocaust Commission last year, the Government is committed to building a new National Memorial to ensure that the memory of the Holocaust is preserved and that the lessons it teaches are never forgotten. Resources will be confirmed when the business case is signed off, and funding will be allocated from the Reserve at subsequent estimates.

Further information on the expanded programme can be found at:

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https://www.gov.uk/government/news/pm-holocaust-memorial-will-stand-beside-parliament-as-permanent-statement-of-our-british-values

GLA Settlement – This consists of the remaining GLA-related commitments to the Affordable Homes Programme as agreed at Spending Review 2013.

Estimate Line – Housing and Planning

Manchester Housing Fund – The Manchester Housing Fund is a joint partnership between Manchester city council, Greater Manchester Pension Fund (GMPF) and the Homes and Communities Agency (HCA). The £300 million fund is provided in the form of recoverable loans which can be reused before being returned to HM Treasury. This fund will support delivery of at least 10,000-15,000 homes over the period.

Right to Buy – This funding supports the pilot of the new Voluntary Right to Buy scheme that is being run by 5 housing associations. The pilot will help inform the design and implementation of the main scheme before the passage of the landmark Housing and Planning Bill.


https://www.gov.uk/government/news/housing-association-tenants-take-first-step-to-homeownership

Estimate Line – Decentralisation and Local Growth

Local Growth Fund & Cities – DCLG will operate Local Growth Fund, which is worth £12 billion over the Parliament. The programme is designed to empower local communities to deliver growth by giving them greater control of public spending. Capital funding of £1,023 million from Department for Transport (£893 million) and the Department for Business Innovation and Skills (£130 million) has been received for the Local Growth Fund in 2016/17. Later years’ funding (beyond 2016/17) will transfer at subsequent Estimates.


https://www.gov.uk/government/news/greg-clark-offers-communities-multi-billion-pound-offer-to-boost-local-growth

Estimate Line – Departmental Unallocated Provision

Departmental Unallocated Provision – In line with HMT guidance this is a contingent pot for known risks and income pressures. This funding will be allocated to specific programmes at the 2016/17 Supplementary Estimate.

Estimate Line – Housing and Planning (ALB)

Affordable Homes and Shared Ownership – This funding consists of the remaining HCA-related contractual commitments to the Affordable Homes Programme as agreed at Spending Review 2013, as well further funding to deliver the Affordable Homes and Shared Ownership as agreed at Spending Review 2015.

LG Resource DEL

Estimate Line – Revenue Support Grant

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Revenue Support Grant – Revenue Support Grant is worth £7.2 billion in 2016-17. It will reduce to zero through the spending review period as part of the move to 100% business rates retention by 2019-20.

Further information on the Local Government Finance Settlement can be found at:

https://www.gov.uk/government/collections/final-local-government-finance-settlement-england-2016-to-2017

Estimate Line – Other Grants and Payments

Business Rate Reliefs – Funding for business rate relief measures will continue through the Spending Review 2015 period. £470 million has been provided for reimbursement of local authority costs in 2016-17.

Transitional Grant and Rural Services Delivery Grant – To support the local government finance settlement, £150 million will be provided to local authorities in 2016-17 through Transitional Grant and £80.5 million through Rural Services Delivery Grant.

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Annex D – Summary Table of Breakdown of Increases and Decreases DCLG Programme Resource DEL

1a) DCLG DEL - Resource DEL £m £m £m £m

2016/17 2017/18 2018/19 2019/20

Budget Cover Transfers - in

Gainshare - BIS 4.5

Gainshare - DfT 2.3 2.3 3.0 3.8

LEP Funding - BIS 10.0

Gainshare - LG 141.5 141.5 202.0 202.0

New Homes Bonus - LG 1,275.0 1,400.0 900.0 900.0

Controlling Migration - LG 25.0 25.0 25.0 25.0

Devolution Deal - LG 40.8 40.8

Budget Cover Transfers - out

DIM Construction - BIS -0.1 -0.1 -0.1

LG Finance Settlement - LG -31.0 -4.0

Carbon monoxide grant - LG -0.2 -0.2 -0.2 -0.2

Machinery of Government changes - out

Fire - HO -93.1 -92.5 -97.0 -78.0

Budget Exchanges

Troubled Families 60.0

Switches

Resource/ Capital switch -6.4 -6.0 -6.0 -5.8

Total 1,428.3 1,510.8 1,022.7 1,046.8

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1b) DCLG DEL - Administration £m £m £m £m

2016/17 2017/18 2018/19 2019/20


Fire - HO -6.1 -5.7 -5.2 -4.9

Total -6.1 -5.7 -5.2 -4.9

Total Resource DEL 1,422.2 1,505.1 1,017.5 1,041.9

2) DCLG DEL - Capital

£m £m £m £m

2016/17 2017/18 2018/19 2019/20

Budget Cover Transfer - in

Local Growth - BIS 130.0

Local Growth - DfT 892.8 801.0 676.0 868.0

Public Land Investment Fund - MOD 1.5 1.5 0.5


Fire - HO -7.9 -8.3 -2.7 -9.7

Switches

Resource/ Capital switch 6.4 6.0 6.0 5.8

Budget Exchanges

Affordable Homes Programme 185.0 198.0 50.0 -198.0

Single Land Programme 50.0

Manchester Housing Investment 33.0

Affordable homes: Rent to Buy 2.2

Housing Supply: Local Growth Fund 4.4

Starter Homes 56.0 77.0 -133.0

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Local Growth Fund 145.0 125.0 -170.0

Budget Measure

Devolution Deal 74.3

Total 1,371.7 1,199.2 931.8 363.1

3) Local Government DEL - Resource

£m £m £m £m

2016/17 2017/18 2018/19 2019/20

Budget Cover Transfers- in

LG Finance Settlement - DCLG 31.0 0.0 4.0 0.0

Carbon monoxide grant - DCLG 0.2 0.2 0.2 0.2

Lead Local Flood Authorities - DEFRA 10.0 6.7 6.7 6.7

Lead Local Flood Authority for statutory consulters in planning (SuDs) - DEFRA 1.9 1.8 1.8 1.8

Devolution Deal - DCLG 40.8 40.8 0.0 0.0

Budget Cover transfer-out

Gainshare - DCLG -141.5 -141.5 -202.0 -202.0

New Homes Bonus - DCLG -1,275.0 -1,400.0 -900.0 -900.0

Controlling Migration - DCLG -25.0 -25.0 -25.0 -25.0

Devolution Deal - DCLG -40.8 -40.8 0.0 0.0

Total -1,398.4 -1,557.7 -1,114.3 -1,118.3

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Annex D

1) Budget Cover Transfers

Change Reason TO: Department

FROM: Department

Control Budget Detail Code

Economic Budget Code

2016/17 (£k)

2017/18 (£k)

2018/19 (£k)

2019/20 (£k)

2020/21 (£k)

Gainshare DCLG BIS DEL RES 4,500

Gainshare DCLG DfT DEL RES 2,250 2,250 3,000 3,750

Local Growth Fund DCLG DfT DEL CAP 892,800 801,000 676,000 868,000 948,000

Local Growth Fund DCLG BIS DEL CAP 130,000

LEP Funding DCLG BIS DEL RES 10,000

DIM Construction - Budget 16 BIS DCLG DEL RES -136 -136 -136

Public Land Investment Fund DCLG

MOD DEL CAP 1,500 1,500 500

Gainshare DCLG LG DEL RES 141,500 141,500 202,000 202,000

New Homes Bonus DCLG LG DEL RES 1,275,000 1,400,000 900,000 900,000

LG Finance Settlement LG DCLG DEL RES -31,000 -4,000

Carbon monoxide grant LG DCLG DEL RES -246 -246 -246 -246

Controlling Migration DCLG LG DEL RES 25,000 25,000 25,000 25,000

Budget measure for Devolution Deal DCLG LG DEL RES 40,750 40,750

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2) Machinery of Government Changes

Fire MoG (£’000) 2016/17 2017/18 2018/19 2019/20

Admin 6,131 5,715 5,180 4,860

RDEL Programme 93,087 92,478 97,060 78,327

CDEL Programme 7,836 8,302 2,691 9,743

Total 107,054 106,495 104,931 92,930

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main estimate 2016-17 – explanatory memorandum · pdf file · 2016-05-25 }l...

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