Funding
The three intelligence Agencies - the Secret Intelligence Service, the Security Service and GCHQ - are funded through the Single Intelligence Account (SIA). The SIA's budget provision is decided by Ministers through the Spending Review mechanism which determines the budgets for Government departments. These arrangements are designed to enable Ministers to decide the amount to spend on security and intelligence, in line with decisions on the overall level and allocation of government spending.
The Cabinet Secretary, Sir Gus O'Donnell, is the Principal Accounting Officer for the SIA.
The Defence Intelligence Staff and Cabinet Office central intelligence machinery are funded separately through their respective Departments. JTAC is funded on a joint basis. JTAC staff costs are paid for by their parent Department and Agencies, and JTAC receives additional funding (e.g. for travel) from the SIA through the Security Service.
Current levels of funding
The Spending Review 2004, announced to Parliament on 12 July 2004, provided additional resources for the security and intelligence Agencies to support a significant expansion of their counter-terrorism capabilities. A further £85 million for the Agencies was announced in the Pre-Budget Report on 5 December 2005, to be split over the three years 2005-08.
The actual (2004/05), predicted (2005/06) and planned figures for the SIA are as follows.
| | 2004/05 | 2005/06 | 2006/07 | 2007/08 |
|---|
| Resource (£ million) |
1,126.6 |
1,266 |
1,336 |
1,381.8 |
|---|
| Capital (£ million) |
150.8 |
231.8 |
232.4 |
238 |
|---|
Note: the extra £85m announced in December is included in the above figures.
Detailed breakdowns showing the division of funding between the three agencies are not published for security reasons.
Financial oversight
Like Government departments, the Agencies are subject to close budgetary scrutiny and challenging efficiency targets. Accounts are subject to audit by the National Audit Office (NAO) in the same way as those of other departments. NAO staff have access to relevant records for this purpose.
The expenditure and resource allocations of the Agencies are subject to Parliamentary scrutiny. Part of the Intelligence and Security Committee's remit is to oversee the Agencies' expenditure and the Committee is assisted in doing so by the NAO. The Chairman of the House of Commons' Public Accounts Committee also sees the expenditure details of the Agencies and can question the Agencies on their expenditure through the NAO.
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