Chapter 1 - Finance
                       
Table 1.2 Public Expenditure by Departmental Grouping
This table (taken from Table 1.3 and Table 1.6 of Public Expenditure Statistical Analyses (PESA 2011) Cm 8104 produced by HMT) examines the expenditure on defence within the wider public expenditure framework. It presents Departmental Expenditure Limits (Resource and Capital) and Annually Managed Expenditure (AME) by departmental groupings.

It is not possible to show figures for all individual departments separately and so departments are grouped broadly on the basis of ministerial responsibilities. A detailed list of departmental groupings can be found in PESA 2011 Annex B.

Annually Managed Expenditure (AME) relates to expenditure outside the Departmental Expenditure Limits (DEL) but included in Departmental Budgets. This is typically demand led items such as social security benefits, certain pension allowances and tax credits for individuals.

Departmental Expenditure Limits (DELs) are firm plans for four years for a specific part of a department's expenditure. DEL covers all administration costs and programme expenditure except where:
  • some programme spending cannot reasonably be subject to close control over a four-year period; or
  • spending relates to non-cash costs other than depreciation and impairments.
Departmental spending not in DEL is included in departmental AME. Both resource and capital budgets are divided into DEL and departmental AME.

Further information about the quality of data and methods used in the production of these statistics, along with details of their intended use can be found in the Background Quality Report - Departmental Resources Statistics.
Current Prices (£ billion)
  Outturn   Outturn   Outturn   Outturn   Outturn   Provisional Outturn
2005/06   2006/07   2007/08   2008/09   2009/10   2010/11
Total Resource DEL
 270.4   283.5 r 300.3 r 313.7 r 333.8   346.0
Of which:
                      
 
Education
 14.3   42.1   44.9   46.8   49.6   51.5
NHS (Health)
 75.0   76.9 r 82.6 r 89.0 r 95.8   99.0
CLG Local Government
 46.2   22.5   22.8   24.7   25.5   26.0
Home Office
 8.5   8.6   8.8   9.2   9.5   9.4
Defence
 29.6   30.1   31.8   32.7 r 34.9   39.1
Work and Pensions
 7.9   7.8   8.0   7.9   8.8   8.8
Current Prices (£ billion)
Outturn   Outturn   Outturn   Outturn   Outturn   Provisional Outturn
2005/06   2006/07   2007/08   2008/09   2009/10   2010/11
Total Capital DEL
 36.6   39.5   44.8   48.5   57.0   50.0
Of which:
                      
 
Education
 4.4   4.1   5.2   5.5   7.4   7.1
NHS (Health)
 2.2   3.0   4.0   4.4   5.2   4.2
CLG Local Government
 0.3   0.2   -   0.1   0.3   -0.1
Home Office
 0.6   0.6   0.7   0.8   1.0   0.7
Defence
 6.8   7.2   8.6   9.0   9.2   9.4
Work and Pensions
 0.4   0.2   0.1   0.1   0.3   0.3
 
Departmental Expenditure Limits (RDEL + CDEL)1
 307.1   323.0 r 345.1 r 362.2 r 390.8   396.0
Current Prices (£ billion)
Outturn   Outturn   Outturn   Outturn   Outturn   Provisional Outturn
2005/06   2006/07   2007/08   2008/092   2009/10   2010/113
Total Departmental AME
 189.6   206.7 r 223.5 r 360.5 r 264.4   175.1
Of which:
                      
 
Education
 8.1   8.6   10.7   10.7   10.4   -10.4
NHS (Health)
 10.6   11.6   13.9   15.0   16.2   -11.4
CLG Local Government
 0.5   1.0   0.8   0.7   0.3   1.1
Home Office
 -   0.3   0.4   0.7   0.7   0.9
Defence4
 5.1   4.9   5.9   6.1   7.9   -0.7
Of which: Defence (Excluding AFPS)5
 0.9   0.6   0.5   0.2   2.4   7.9
Work and Pensions
 115.2   119.3   127.5   135.5   146.7   151.5
 
Total departmental spending (RDEL + CDEL + AME)1 496.6   529.7 r 568.6 r 722.7 r 655.2   571.1
Source: HMT Public Expenditure Statistical Analyses 2011 (Table 1.3 and Table 1.6)
1. The figures here are different from Total DEL in PESA 2011, which presents Total DEL as RDEL plus CDEL less depreciation.
2. For more information relating to the increase in Government AME in 2008/09 please refer to the main findings in the Departmental Resources section.
3. In the June 2010 Budget Statement it was announced that the Government would use the CPI rather than the RPI for the indexation of public service pensions. This change has been recognised as a negative past service cost in 2010/11 in accordance with IAS 19 and explains the negative numbers appearing in the 2010/11 AME figures.
4. Previously the figures for Defence departmental AME were adjusted to remove contributions to the Armed Forces Pensions Scheme. This table now aligns with the presentation in PESA 2011 and the Budget Report (March 2011, HC836) and includes the Armed Forces Pensions Scheme.
5. The figures for Defence (excluding AFPS) align with data displayed in Tables 1.1, 1.3 and 1.5 and exclude contributions to the Armed Forces Pensions Scheme.