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Department for Communities and Local Government Annual Report and Accounts 2010-11 (For the Year Ended 31 March 2011) HC

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Department for Communities and Local Government Annual Report and Accounts 2010-11 (For the Year Ended 31 March 2011) HC Department for Communities and Local Government Annual Report and Accounts 2010-11 (For the year ended 31 March 2011) HC 971 London: The Stationery Office £25.75 Department for Communities and Local Government Annual Report and Accounts 2010-11 (For the year ended 31 March 2011) Ordered by the House of Commons to be printed 18 July 2011 Accounts presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000 Annual Report presented to the House of Commons by Command of Her Majesty Annual Report and Accounts presented to the House of Lords by Command of Her Majesty HC 971 London: The Stationery Office £25.75 This is part of a series of Annual Reports and Accounts which, along with the Main Estimates 2011-12 and the document Public Expenditure: Statistical Analyses 2011, present the Government’s outturn and planned expenditure for 2011-12 © Crown copyright 2011 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit: www.nationalarchives.gov.uk/doc/open-government-licence/ or email: [email protected] Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to us at: Department for Communities and Local Government Eland House Bressenden Place London SW1E 5DU Telephone: 030 3444 0000 Website: www.communities.gov.uk This publication is also available for download at www.official-documents.gov.uk ISBN: 980102972092 Printed in the UK by The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID 2431732 07/11 Printed on paper containing 75% recycled fibre content minimum. Department for Communities and Local Government Annual Report and Accounts 2010-11 Contents Contents Forewords to the Annual Report and Accounts 2010-11 5 Introduction and summary of achievements 8 Annual Report 2010-11 1. About the Department for Communities and Local Government 11 2. How the Department performed in 2010-11 Tackling the budget deficit 15 Decentralising power as far as possible 16 Reinvigorating accountability, democracy and participation 19 Increasing transparency 22 Meeting people’s housing aspirations 23 Putting communities in charge of planning 26 Delivering on growth and deregulation 27 Wider responsibilities 29 3. Progress on the Structural Reform Plan and input / impact indicators 33 4. The Public Accounts Committee and Parliamentary Ombudsman 37 5. Introduction to the Resource Accounts 38 6. Management commentary 38 7. Other financial information 77 8. Remuneration report 86 9. Statement of Accounting Officer’s responsibilities 95 10. Statement on internal control 97 11. The Certificate and Report of the Comptroller and Auditor General to the House of Commons 104 Resource Accounts 2010-11 12. Statement of parliamentary supply 106 13. Consolidated statement of comprehensive net expenditure 107 14. Consolidated statement of financial position 108 15. Consolidated statement of cash flows 109 16. Consolidated statement of changes in taxpayers’ equity 110 17. Notes to the Departmental Resource Accounts 111 3 Department for Communities and Local Government Annual Report and Accounts 2010-11 Contents 18. Trust Statement in respect of National Non-Domestic Rates collected on behalf of the Consolidated Fund 153 19. Statement of Accounting Officer’s responsibilities in respect of the 155 Trust Statement 20. Statement on internal control in respect of the Trust Statement 157 21. The Certificate and Report of the Comptroller and Auditor General to the 158 House of Commons in respect of the Trust Statement 22. Statement of revenue, other income and expenditure in respect of the 160 Trust Statement 23. Statement of financial position in respect of the Trust Statement 161 24. Statement of cash flows in respect of the Trust Statement 162 25. Notes to the Trust Statement 163 26. Accounts Direction in respect of the Trust Statement 165 Annexes A: The Departmental Group 167 B: Glossary of terms and acronyms 171 4 Department for Communities and Local Government Annual Report and Accounts 2010-11 Forewords Forewords to the Annual Report and Accounts 2010-11 Foreword from the Secretary of State The Department for Communities and Local Government is leading a fundamental shift of power away from Whitehall to councils, communities and households across the nation. Since the Coalition Government was formed in May 2010, we have taken decisive action to make our radical localism agenda a reality and free up councils, businesses and communities to deliver economic growth. We have abolished regional housing targets and suspended Home Information Packs, cut red tape on the voluntary sector, cut regulation on businesses and cut top-down reporting regimes on local authorities. Our Localism Bill will devolve greater power and freedoms to councils and neighbourhoods, establish powerful new rights for communities, revolutionise the planning system and give communities much more control over housing decisions. The nation faces an unprecedented financial situation and local government is playing its part in cutting the record public deficit. We are handing councils the new localism powers and spending freedoms they need to be as efficient and effective as possible and to protect the frontline services local people value. Working with local government, we have also frozen council tax across England in 2011-12 to help families with the cost of living. Building on our work on decentralisation, the Department will continue to help create the right conditions for local growth, by putting local councils and businesses in the driving seat and giving them incentives to boost the local economy. This year’s Annual Report and Accounts is around 170 pages shorter than the last comparable documents published in 2009, making it much more accessible to the public. It demonstrates our commitment to create a modern way of governing and highlights our record as one of the most deregulating Departments in Whitehall. By turning government upside down we will put businesses and councils back in charge of economic growth, town halls back in charge of local affairs and people back in charge of their lives. Right Honourable Eric Pickles MP Secretary of State for Communities and Local Government 5 Department for Communities and Local Government Annual Report and Accounts 2010-11 Forewords Foreword from the Permanent Secretary The Coalition Government has challenged us to rethink completely the way we do things. In particular, we are moving away from central management by Whitehall and putting more power in the hands of people and communities, and being more transparent about public spending and how we will implement policy commitments. To do this we are fundamentally changing our approach to delivery – becoming a smaller and stronger Department that influences across Whitehall to deliver our core purpose: • to drive the transfer of power and funding away from Whitehall to people and communities, making localism, decentralisation and the Big Society a reality • to create – through our core policy responsibilities – the conditions which re- energise and empower individuals, communities and business to build successful cities, towns and neighbourhoods. Alongside the Department delivering a fundamental restructure – including 288 staff agreeing voluntary departures by the end of 2010-11 – we have continued to achieve a significant amount as set out in this Annual Report and in progress reports against our Structural Reform Plan. For instance we have introduced a Localism Bill to Parliament with over 200 clauses, the first group of community budgets has been launched, and we have taken a new and important role leading on local economic growth. These achievements are testament to the professionalism and dedication of staff across the Department and wider Group and I would like to commend them for this. Drawing on the high levels of drive and commitment that have enabled us to achieve so much this year, I am confident that we will continue to deliver on our core purpose. Sir Bob Kerslake Permanent Secretary Department for Communities and Local Government 6 Department for Communities and Local Government Annual Report and Accounts 2010-11 Forewords Foreword from the Lead Non-Executive Director The new Departmental Board at the Department for Communities and Local Government has been operating since January 2011; the Non-Executive members’ role is both to support and challenge the DCLG team to enable successful delivery of their part of the Structural Reform Plan. The Department has a vital programme of work, with local communities, and promoting local growth, at its heart. There is a clear, well identified set of priorities and delivery plans, which the Board reviews regularly to ensure they keep pace with emerging challenges and opportunities, such as the announcement of the new Enterprise Zones in the March 2011 Budget. The Department has made good progress against the milestones in the Structural Reform Plan, ahead of the average for all departments. But there is much to do in the year ahead, at a time when the Department is restructuring and down-sizing to meet its internal efficiency goals. A key role of the Board is to monitor, and act on, identified risks: Stephen Hay chairs the Audit and Risk Committee, focusing on the key financial and operational risks; and Diana Brightmore-Armour chairs the Nomination and Governance Committee, looking at risks related to the people agenda of the Department, such as recruitment, succession planning and the departmental restructuring. In the coming year, the Non-Executive Board members will work to ensure that the Department maintains clear priorities and well developed implementation plans, with the right resource in place to deliver successfully. Greater transparency of management and financial information will be sought, along with clear, robust measurements of progress, so the Board can monitor performance and take corrective action if needed, to support the Department’s continued success.
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