As part of its Spending Review settlement, the Department has a Total Delegated Expenditure Limit (TDEL) of £108.8bn for 2012-13, made up of separate limits of£104.3bn for revenue expenditure and £4.5bn for capital expenditure.
The diagram below sets out how the Department has allocated these resources for 2012-13. The vast majority of resources are to be transferred to PCTs and SHAs for spending on NHS services. Alongside this, approximately £5.2bn is to cover central expenditure by the Department and its arm’s length bodies, including several major central budgets managed at a national level such as Research and Development, Informatics, and European Economic Area payments. In addition, the Department allocates approximately £3.0bn of capital to acute healthcare providers (foundation trusts and NHS Trusts), and approximately £1.5bn to local authorities in the Learning Disability and Health Reform Grant.
The revenue figures in the diagram also cover administration expenditure, and the Department has set administration budgets across all the organisations totalling £3.5bn. This is part of a downwards trajectory across the Spending Review period, consistent with the commitment to reduce administration expenditure by one third in real terms in the period 2010/11 to 2014/15 to allow prioritisation of resources to NHS services.
Take a look at the allocation of departmental spend for 2012-13