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Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Foreword by the Secretary of State

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Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Foreword by the Secretary of State Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 HC 30 Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 (For the year ended 31 March 2015) 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 Ordered by the House of Commons to be printed 13 July 2015 HC 30 This is part of a series of departmental publications which, along with the Main Estimates 2015–16 and the document Public Expenditure: Statistical Analyses 2015, present the Government’s Outturn for 2014–15 and planned expenditure for 2015–16. © Crown copyright 2015 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at [email protected] Print ISBN 9781474122092 Web ISBN 9781474122108 ID P002737235 07/15 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Foreword by the Secretary of State Foreword by the Secretary of State for Environment, Food and Rural Affairs Elizabeth Truss The core purposes of Defra are to support economic growth by promoting a thriving and internationally successful food and farming sector, to improve the natural environment and to provide security to homes and businesses against the threats of flooding and animal and plant disease. The Department made significant progress during 2014–15, opening more than 100 new food and drink export markets during the year. It also approved local partners’ proposals for the first 17 Food Enterprise Zones, which will bring growth to local food economies. Defra staff carried out a programme of streamlining and improving environmental guidance and regulations, bringing direct improvements to the competitiveness of business, both in food and farming and in the wider economy. The Department repaired and improved flood defences following the damage caused in the winter of 2013–14. It also made significant advances in the government’s long-term strategy to rid the country of bovine TB; essential for safeguarding the future of our beef and dairy industries. Defra responded promptly and effectively to avian influenza outbreaks, while further upgrading its ability to do so in the future. And last autumn, the Department launched the first national strategy to support bees and the other pollinating insects which play a vital role in food production and the health and beauty of the British countryside. You will read in this report how the Department has focused on these priorities while at the same time making great strides in the way it works towards becoming one of the most flexible, forward-thinking and responsive in Whitehall, constantly improving the value for money it provides for the taxpayer. I am greatly honoured to be returning to Defra as part of the new government and to have the chance to take the Department’s priorities forward. This government has an ambitious agenda for improving Britain and I am proud that Defra is at the heart of it. i Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Foreword by the Permanent Secretary Foreword by the Permanent Secretary of the Department for Environment, Food and Rural Affairs Bronwyn Hill In the final year of the five year Parliament, Defra delivered its priorities for a healthy environment which underpins a healthy economy. I am immensely proud of our achievements, reflecting work with our wider network and with organisations and individuals up and down the country. We have supported and promoted food and farming; taken swift action to protect the country from animal and plant health disease; repaired flood defences and produced a long term strategy to protect more homes and businesses from flooding in future. Reflecting the huge significance of the country’s food and drink exports to our economy, we have opened up new markets for UK food and drink and appointed our first Agriculture and Food Counsellor to China. Negotiation of reforms to the Common Agricultural Policy (CAP) has been a significant challenge. We made detailed implementing decisions and introduced new IT systems to deliver the schemes in England, working across Defra to integrate policy and operations more effectively. We took advantage of the extension of the EU deadline for applications to 15 June, and have invested significant resources in the RPA to help farmers meet the deadline. Making rural payments and further simplification of the CAP will continue to be top priorities for the Department in 2015–16 and beyond. We made significant progress on other major projects, including flood defences, the Thames Tideway Tunnel and on work with the insurance industry to implement the new flood insurance scheme set out in the Water Act 2014. We made good progress on regulatory reform. Over the last three years, Defra has delivered over 650 reforms; reduced the demand for data by about 20 percent and simplified and reduced guidance by around 80 percent. We have delivered government priorities with fewer resources, made significant efficiencies and secured value for money. We have developed capability for the future by strengthening our network leadership and developing a ‘one business’ approach that is more customer focused, flexible and responsive. We will need to accelerate the move to a new operating model in the next five years; including using the opportunities that the digital world offers across our services. I would like to pay tribute to all our people, in the Department and across our wider Network, for their hard work and dedication to public service. I would also like to take this opportunity to thank our four Non–Executive Directors who have worked closely with Defra through the last Parliament. I shall be leaving Defra this summer after four years that have been both challenging and enjoyable. Arrangements are well advanced to appoint my successor and for a smooth transition. ii Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Contents Contents Foreword by the Secretary of State for Environment, Food and Rural Affairs i Foreword by the Permanent Secretary of the Department for Environment, Food and Rural Affairs ii Chapter 1 – Strategic Report: Our Organisation 3 Our Priorities 3 Our Operating Structure 3 Our Delivery Partners 6 Defra’s Network Bodies 2014–15 8 Civil Service Reform 9 Risk Management 10 Chapter 2 – Strategic Report: Our Performance 11 Government Major Projects Portfolio 14 Input and Impact Indicators 15 Performance on Sustainable Development 15 Adapting to Climate Change 17 Rural Proofing 17 Better Regulation 18 Open Data 19 Chapter 3 – Strategic Report: Financial Overview 20 Financial Summary 20 Consolidated Statement of Financial Position 22 Other Information 22 Chapter 4 – Directors Report: Staff and Remuneration 25 Our Ministers and Senior Staff 25 People and Culture 25 Remuneration Report 30 Chapter 5 – Directors’ Report: Corporate Information 38 Chapter 6 – Non–Executive Directors’ Report 43 Chapter 7 – The Accounts 46 Statement of Accounting Officer's Responsibilities 46 Governance Statement 47 The Certificate of the Comptroller and Auditor General to the House of Commons 54 The Report of the Comptroller and Auditor General to the House of Commons 56 Statement of Parliamentary Supply 59 Consolidated Statement of Comprehensive Net Expenditure 68 Consolidated Statement of Financial Position 69 Consolidated Statement of Cash Flows 70 Consolidated Statement of Changes in Taxpayers’ Equity 71 Chapter 8 – Notes to the Departmental Accounts 77 1 Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Contents 1 Statement of Accounting Policies 77 2 Statement of Operating Costs by Operating Segment 84 3 Staff Numbers and Related Costs 85 4 Other Administration Costs 88 5 Programme Costs 89 6 Income 90 7 Property, Plant and Equipment (PPE) 92 8 Intangible Assets 97 9 Impairments 98 10 Financial Commitments 98 11 Financial Instruments 101 12 Investments 103 13 Cash and Cash Equivalents 103 14 Trade Receivables, Financial and Other Assets 104 15 Trade Payables and Other Current Liabilities 105 16 Provisions for Liabilities and Charges 106 17 Pension Liabilities 108 18 Contingent Liabilities and Contingent Assets 119 19 Losses and Special Payments 121 20 Related Party Transactions 122 21 Events After the Reporting Period 122 22 Prior Period Adjustments 122 23 Entities within the Departmental Boundary 123 24 Entities outside the Departmental Boundary 124 Annex 1: Input and Impact Indicators 126 Annex 2: Core Tables 2014–15 133 Annex 3: Commentary on Sustainable Performance 147 2 Department for Environment, Food and Rural Affairs Annual Report and Accounts 2014–15 Chapter 1 – Strategic Report: Our Organisation Chapter 1 – Strategic Report: Our Organisation Our Priorities Defra’s Business Plan for 2013–15 was published in June 2013. It set out the principal actions that Defra planned to implement the Government’s priorities. This Annual Report and Accounts (ARA) reports performance against those actions. Defra’s priorities were as follows: leading the world in food and farming; protecting our country from floods and animal and plant diseases; improving the environment; and championing the countryside and improving rural service.
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