Department of Health's Supplementary Estimate memo published

• Department of Health's Explanatory Memorandum on 2016-17 Supplementary Estimate
• Explanation of changes in 2016-17 Main Estimate from the 2016-17 Supplementary (Final) Estimate - Departmental Expenditure Limits  
• Health Committee

Transfer from capital budget to resource budget

The most significant element of the Department of Health's Supplementary Estimate is a transfer of £1.2bn from the Department's capital budget to the resource budget (for day-to-day expenditure). The Department's memorandum explains that the transfer "mitigates RDEL [that is, day-to-day running cost] pressures in the provider sector."

This is the third year in a row that the Department of Health has had to transfer funding from the capital budget to the resource budget to meet day-to-day running costs (£640m was transferred in 2014–15, £950m in 2015–16 and £1200m this year).

In its report of last year on the impact of the Spending Review on health and social care, the Health Committee expressed concern about “the consequences of repeated raids on the capital budget to meet current spending, especially as that budget is already set to reduce in real terms over the spending review period” (para 42).

House of Commons debate

The Supplementary Estimate will be debated in the House of Commons on Monday, 27 February, in a debate called for by the Health and Public Accounts Committees. 

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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