Set out below are the Department's responses to the Select Committee questions arising from the Spring Supplementary Estimate and the Department's Estimates Memorandum.

1.   The disposal receipt for Chelsea Barracks is some £959 million. What sums of additional accommodation capital expenditure will this support in each of the years of the CSR period?

  Our plans for future defence expenditure were agreed in the CSR. Under these plans the entire Chelsea Barracks receipt will be recycled into new and improved accommodation for Service personnel. £250 million was appropriated in aid to the Defence Budget in 2007-8. A minimum of £150/200/200 million will be invested in accommodation over the period 2008-09 to 2010-11 (to which we have since announced a commitment to a further £80 million over the same period). A balance of £159 million will be made available to the Defence Budget in the next Spending Review period.

2.   The Estimate includes additional provision of £1.622 billion for non-cash costs. £424 million of this is for Urgent Operational Requirements in RfR-2, and £1.198 billion is for RfR-1. Why is there a need for such a large increase in RfR-1 provision?

  The Estimate reflects the latest Top Level Budget forecasts available of Indirect Resource DEL, which include revised assessments of depreciation and provisions for personnel early release schemes. In addition, the Department has also included a contingency in the light of the National Audit Office comments on Indirect RDEL after their AP06 2007-08 Departmental Resource Accounts (DRAc) hard close review and continuing uncertainties over the forecasts of depreciation.

3.   Capital DEL provision is increased by £40 million, drawn down as EYF, representing a further tranche of funding from the sale proceeds from the QinetiQ flotation. What further such QinetiQ-related additional funding is due from the Treasury in future periods?

  There are no further tranches of funding due for the QinetiQ flotation.

4.   The Estimate recognises £258 million of additional expected income on RfR-1 subheads. In what main areas do you expect the bulk of that additional income to arise?

  The Estimate reflects latest forecasts of income from a range of Top Level Budgets and includes both increases and decreases which are not attributable to a particular cause. We could provide further details of the changes involved in slower time, should the Committee require them.