UKHSA Advisory Board: Finance Report
Updated 11 March 2025
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Date: March 2025
Sponsor: Luke Heath
1. Purpose of the paper
This paper gives an overview of the UK Health Security Agency’s finances as at month 10 of financial year 2024 to 2025 (the end of January 2025).
2. Recommendations
The Advisory Board is asked to note UKHSA’s financial position.
3. Summary of 2024 to 2025 financial performance (at end of January)
The table below shows resource and capital departmental expenditure limits (RDEL and CDEL) for 2024 to 2025, split by the parts of:
- core agency costs
- non-Covid vaccines and countermeasures
- the Covid Vaccine Unit.
It shows the provisional outturn for the 12 months April 24 to March 25.
Table 1. Month 10 resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)
| Budget | Actual | Variance | |
|---|---|---|---|
| Core RDEL | 354,425 | 373,401 | (18,976) |
| NBN RDEL | 6,003 | 6,003 | (0) |
| ODA RDEL | 11,754 | 11,754 | 0 |
| CVU RDEL | 697,587 | 692,403 | 5,184 |
| VCR RDEL | 464,688 | 464,688 | 0 |
| Core CDEL | 65,585 | 46,517 | 19,068 |
| NBN CDEL | 0 | 5,918 | (5,918) |
| ODA CDEL | 0 | 0 | 0 |
| CVU CDEL | (112,262) | (138,606) | 26,344 |
| VCR CDEL | 15,294 | 15,294 | 0 |
| UKHSA total resource | 1,534,456 | 1,548,248 | (13,792) |
| UKHSA total capital | (31,383) | (70,877) | 39,344 |
| UKHSA total | 1,503,073 | 1,477,371 | 25,702 |
Table 2: Full year resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)
| Budget | Actual | Variance | |
|---|---|---|---|
| Core RDEL | 426,338 | 432,250 | (5,912) |
| NBN RDEL | 8,730 | 8,561 | 169 |
| ODA RDEL | 16,332 | 16,332 | 0 |
| CVU RDEL | 928,000 | 764,300 | 163,700 |
| VCR RDEL | 653,893 | 653,893 | 0 |
| Core CDEL | 93,898 | 93,898 | 0 |
| NBN CDEL | 8,710 | 8,710 | 0 |
| ODA CDEL | 2,885 | 2,885 | 0 |
| CVU CDEL | (118,670) | (145,336) | 26,666 |
| VCR CDEL | 87,937 | 87,937 | 0 |
| UKHSA total resource | 2,033,293 | 1,875,336 | 157,957 |
| UKHSA total capital | 74,760 | 48,094 | 26,666 |
| UKHSA total | 2,108,053 | 1,923,430 | 184,623 |
Core resource budget
The current forecast shows a pressure on budgets of £5.9 million. As reported at the previous meeting a £3.3 million pressure has emerged due to the change in fiscal rules which prevents any further switches from capital to resource budget which had been previously agreed with Department for Health and Social Care (DHSC). In addition, a £2.8 million pressure has emerged as we are writing off fixed assets that are held on our balance sheet which have been identified during the month nine interim audit as needing to be disposed during the current year.
The current forecast includes the expected exit costs incurred through the SCS restructure and a forecast to complete a Voluntary Exit Scheme (VES). The VES is taking steps to align our workforce with future priorities and make the agency more efficient. We remain committed to maintaining a strong, skilled workforce ensuring we are the right size and shape to deliver our remit and operate within our means. There is potential headroom emerging at a health group level to cover our current pressures and we are working with DHSC to manage our outturn position within the DHSC group position.
Core capital budget
Capital spend has an even profile in the year. While this is currently behind plan we expect, as in previous years, spend from major projects to be in the final quarter of the year and deliver to plan. Additional budget was received to deliver antimicrobial resistance systems upgrades, cyber compliance and technology network improvements and this is fully profiled in the remaining months of the year.
Covid Vaccine Unit resource and capital budget
The Covid Vaccine Unit forecast reported at the last committee meeting showed an underspend on resource budget of £33 million. This was based on the ministerial direction that the latest vaccine should be used for the Spring and Autumn 2025 campaigns. The review for affordability at a health group level and the earlier start date for Spring 2025 campaign reduced forecast spend by £131 million to the current position of £164 million underspent. After confirming the above forecast, we have received the initial drawdown plans from nations for the Spring campaign. These initial plans were 1.5 million doses above the current modelling assumptions. We therefore expect further costs of £34 million to be added to the revised forecast.
The capital credit forecast is generated by purchases from contracts agreed in the previous financial year and delivered in 2024 to 2025. Under the accounting treatment for vaccines a prepayment is made when the order is greater than £20 million and will be delivered after one year. Once the vaccine is delivered the prepayment is then reversed and therefore a credit scores against this budget line.
Vaccines and countermeasures resource and capital budget
This budget is wholly funded based on actual expenditure by DHSC.
4. 2025 to 2026 business planning
We have concluded the business planning round for 2025 to 2026. The core resource budget is £430.8 million with allocations agreed for groups. This is an increase from the 2024-to-2025 initial settlement of £395 million to maintain our core capabilities. However, there are risks of £7.1 million relating to the increase in Employers National Insurance and the additional 0.8% pay rise for staff on NHS terms and conditions. These have not been funded within the settlement from DHSC.
The core capital budget for 2025 to 2026 is £130.3 million. This is an increase from the 2024 to 2025 initial settlement of £88.9m.
5. Spending Review Phase 2
We received commissions from DHSC as part of the second phase of the Spending Review over February. We have re-established a fiscal events team comprising of representatives across the agency. We will prioritise maintaining our core capabilities and reprioritising resources freed up through our existing invest to save programmes within an envelope which will reduce in real terms over the Spending Review period. Our opportunities for growth will be pursued through cross government work and joint bids under the government’s growth agenda. Our final returns are due to be provided to DHSC in mid-March.
6. Financial Control and Improvement Programme
The reset of Financial Control and Improvement Programme (FCIP) has commenced. The new programme broadens the scope to transform the whole of the finance function to be high performing. FCIP had an original focus on the removal of the account’s disclaimer.
The objectives of the reset programme have 4 key pillars which are:
- insight and analysis
- control and compliance
- people and culture
- partnering
Luke Heath
Director, Finance, Performance, Risk and Assurance
March 2025