BIS utilises £600m of its new AME facility
BIS accounts show that the department only utilised £603m of its supplementary Annuall Managed Expenditure allocation of £1.98bn for 2014/15. This allocation was introduced in 2013/14 as a new budgeting convention to deal with fiscal problems associated with student loans.
£800m was utilised in 2013/14 which means roughly £1375m is sitting in the new facility. One thirtieth of that is charged back to BIS’s other planned spending each year for the next 30 years. This means that BIS accommodate a budget cut of £46m each year from now on.
This is in addition to the £450m of in-year savings demanded by the Treasury for 2015/16. The upwards revaluations to existing student loans relate to ‘non-cash’ allocations so are unlikely to benefit BIS budget for the purposes of the Treasury.