Committee publication · Estimate memoranda · 3 March 2026

Department for Culture, Media and Sport Supplementary Estimate 2025-26 memorandum

From: Culture, Media and Sport Committee

Inquiry: The work of the Department for Culture, Media and Sport

Summary

This supplementary estimate memorandum sets out the Department for Culture, Media and Sport's revised spending plans for 2025-26, seeking parliamentary approval for adjusted budgets across resource and capital expenditure. Key changes include £61.1m additional Resource DEL (driven by depreciation funding and museum reserves drawdowns), offset by £18.7m reduction in Capital DEL, plus technical adjustments to BBC and Channel 4 borrowing assumptions totalling £191.7m in AME increases and £261.9m in AME decreases.

Key findings

Resource DEL increased by £61.1m (3.53%) from Main Estimate, primarily due to £28.7m additional depreciation for museums and libraries, and £34.4m for utilising historic reserves under the Freedoms Scheme
Capital DEL decreased by £18.7m (-2.48%), driven by £18.2m reduction in sports spending (technical adjustments to rugby loans and IFRS 16 forecasts) and £43.6m surrender of unrequired lease capitalisation funding
Resource AME increased by £191.7m (4.37%), mostly £183.1m for BBC dividend policy and payment timing; Capital AME decreased by £261.9m (-35.47%) due to revised borrowing assumptions for BBC and Channel 4
Administration costs increased by £0.8m, with £20.4m additional depreciation funding and £5.1m for National Insurance contribution increases offset by strategic reprioritisation and underspends
Major projects portfolio includes £209m British Museum Energy Centre (Green rating), £221m Natural History Museum Unlocked (Amber), £310m Youth Investment Fund (Amber, completion March 2026), and 4th National Lottery Licence transition (Red rating)

Tone

Procedural

Topics

public-financebudgetingcultural-institutionsbroadcastingsports-funding

Key actors

Department for Culture, Media and Sport, British Library, Museums and Galleries, BBC, Channel 4, UK Sport, Susannah Storey

Notable line

“The claim was foreseen at the SR but estimates were not able to be determined at that point in time.”

Key Quotes

“The Department for Culture, Media and Sport supports culture, arts, media, sport, tourism and civil society across every part of England”
— Department for Culture, Media and Sport · Statement of departmental objectives

“The nature of AME spend is volatile and difficult to predict. Adequate budget cover was provided at the Supplementary Estimate based on best estimates.”
— Department for Culture, Media and Sport · Explanation of AME changes for BBC and Channel 4

“This is not expected to endure beyond 25-26”
— Department for Culture, Media and Sport · On strategic reprioritisation using RDEL flexibility for administrative savings

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Source · parliament.uk record ↗