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BEIS Annual Report and Accounts 2019-20

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BEIS Annual Report and Accounts 2019-20 Annual report and accounts 2019-20 HC 709 Annual report and accounts 2019-20 Presented to the House of Commons pursuant to section 6(4) of the Government Resource & Accounts Act 2000 Ordered by the House of Commons to be printed on 30 September 2020 HC 709 © Crown copyright 2020 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 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/official-documents Any enquiries regarding this publication should be sent to us at Department for Business, Energy & Industrial Strategy 1 Victoria Street, London. SW1H 0ET Tel: 020 7215 5000 Email: [email protected] ISBN 978-1-5286-2121-2 CCS0320287242 09/20 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office Annual report and accounts 2019-20 1 Contents Foreword by the Secretary of State 2 The Certificate of the Comptroller and Report of the Permanent Secretary 3 Auditor General to the House of Commons 110 Performance report 5 The Report of the Comptroller and Overview 6 Auditor General to the House of Our purpose 6 Commons 114 What we set out to achieve 6 Financial Statements 115 Our highlights in 2019-20 8 Where we spent our money in 2019-20 10 Consolidated Statement of Our business model 12 Comprehensive Net Expenditure 116 How we are organised: our organisational Consolidated Statement of structure 13 Financial Position 117 How we are organised: our group 14 Consolidated Statement of Cash Flows 119 Risks affecting delivery of our objectives 15 Consolidated Statement of Changes in Performance analysis 20 Taxpayers’ Equity (Departmental Our performance 20 Group) 122 Looking ahead 26 Notes to the Accounts 123 Performance against United Nations sustainable development goals 27 Trust Statement 225 Financial review 29 Foreword by the Accounting Officer 226 Sustainability report 39 Statement of Accounting Officer’s Other performance reporting 42 responsibilities for the Trust Statement 229 Accountability report 45 The Trust Statement Audit Report of Corporate governance report 46 the Comptroller and Auditor General to Statement of Accounting Officer’s the House of Commons 231 responsibilities 46 Statement of Revenue, Other income Directors’ report 48 and Expenditure 234 Report of the lead non-executive director 50 Statement of Financial Position 235 Governance statement 51 Statement of Cash Flows 236 Staff report 63 Notes to the Trust Statement 237 Remuneration report 80 Annexes 245 Statement of Parliamentary Supply 91 Annex A: Common core tables 246 Parliamentary accountability disclosures 102 Annex B: Glossary 253 2 Annual report and accounts 2019-20 Foreword by the Secretary of State BEIS is playing a crucial role in securing the UK’s long-term future. It has been at the forefront of the fight against coronavirus, and is now leading Britain’s recovery by tackling climate change, unleashing innovation and backing business. We will continue to build on the many achievements outlined in this report over the coming years to create a stronger, greener future. Tackling Climate Change Co-hosting the COP26 UN Climate talks next year gives us the opportunity to reinforce the UK’s position as a world leader in climate action. Over the past year BEIS has continued its work to achieve net zero emissions by 2050. The deadline of coal phaseout was brought forward to 2024. Construction began on the world’s largest offshore wind development, which will power 4.5 million UK homes. We are investing £800 million in Carbon Capture, Usage and Storage (CCUS) The Rt Hon infrastructure, enabling us to establish the UK’s first CCUS power plant. We know Alok Sharma there is more to do and further opportunities to be seized as the UK leads a global Secretary of State for green industrial revolution, creating thousands of jobs across the country. Business, Energy and Industrial Strategy Unleashing Innovation We are using science and research to unite and level up our country, give people opportunities, and make the UK a science superpower. In March, we committed to increasing research and development investment to £22 billion per year by 2025. UK businesses are leaders in developing high-potential technologies, from nuclear fusion to space and satellite technology, electric vehicles, and developing a state-of-the-art climate supercomputer. Our unprecedented investment in science will strengthen research and build the foundations for the new industries of tomorrow. Backing Business The Government’s ambition is for Britain to be the best country in the world to start and scale a business. We have invested in our key industries and local economies to level up opportunities across the UK. For workers, we saw the biggest cash increase ever for the lowest-paid with a new National Living Wage of £8.72 per hour, and we introduced new rights for paid parental bereavement leave. Fighting Coronavirus BEIS has been at the forefront of the Government’s response to the Coronavirus pandemic. The Department worked quickly to ease regulatory burdens on business, produce workplace guidance safeguarding workers while supporting the economy, and agree measures with the energy industry to protect vulnerable consumers. Through the British Business Bank, BEIS has made available over £50 billion in business loans. Grants have also been given out to nearly 900,000 small businesses and individuals. We established the Vaccine Taskforce to marshal the collective effort of government, academia, industry and healthcare to produce a vaccine as quickly as possible. Clearly, challenges remain, but I have been impressed by how business and government have come together to respond to Coronavirus. I am also immensely proud of the way that BEIS has risen to the challenges of the pandemic, working at pace to support the economy and safeguard jobs. I want to see this continue, driving a green recovery in jobs and industry and levelling up across the UK. Annual report and accounts 2019-20 3 Report of the Permanent Secretary It is an honour to become Permanent Secretary during such an important time as we work to help businesses, workers and consumers respond to, and recover from, coronavirus. On behalf of the Department, I would like to thank Alex Chisholm for his leadership as BEIS Permanent Secretary until April 2020, and Sam Beckett for her stewardship of the Department from April to July. The Department has rapidly mobilised to best support the response to coronavirus. We found ways to collaborate ever more closely with businesses and their representative organisations to deliver vital grants, loans and advice to all sectors of the economy. We set up a PPE Make Unit to support the national effort to produce essential equipment and established the Vaccine Taskforce to drive forward and co-ordinate efforts Sarah Munby to research and produce a coronavirus vaccine. Permanent Secretary Our strong global leadership on climate change was recognised when the and Principal UK was selected to co-host with Italy the COP26 UN climate talks. BEIS is Accounting Officer leading on cross-Government policy development ahead of the conference next November. The Government doubled international climate finance spend from £5.8 billion to £11.6 billion, and continued to invest in green technologies – for example by doubling the size of the Energy Innovation Programme to £1 billion and providing £1 billion over five years to boost automotive green technologies. Creating the right conditions to unleash innovation remains a top priority for the Department. This year Government announced the largest ever increase in R&D funding, reaching £22 billion by 2024-25. Individual projects included a £36 million world-first National Timing Centre and a £40 million investment in quantum technology. We provided £179 million investment to support the next generation of scientists, mathematicians and engineers, as well as introducing the first ever Stephen Hawkings Fellowship. The Space Industry Act was passed into law, enabling the expansion of commercial space activities in the UK and creating the potential for hundreds of highly-skilled jobs and billions in investment. We continue to focus on making the UK the best place to work and grow a business, whether through our work on the National Living Wage or through our support to help businesses preparing for the end of the Transition Period. In particular this year we boosted support for SMEs, announcing the expansion of the British Business Bank’s venture capital and debt support programmes. The UK is also making strong progress on improving gender diversity in senior business positions following the Hampton- Alexander review: a third of FTSE 100 board positions are now held by women. I am immensely proud of all that the Department has delivered over the past year, during a period of considerable turbulence. We stand ready for our critical role in the year ahead. Page intentionally left blank Performance report 6 Annual report and accounts 2019-20 Overview The overview section, pages 6 to 19 provides a summary of the annual report and accounts. It includes a summary of our performance, expenditure and risks during the year, and our organisational structure as at the reporting date. Our purpose Our purpose is to build an economy which is fairer, cleaner, more innovative, and attracts investment from all over the world. What we set out to achieve BEIS began the 2019-20 financial year with five objectives as published in June 2019, in the Department’s Single Departmental Plan (SDP). These included: • delivering an ambitious industrial strategy; • maximising investment opportunities and bolster UK interests as we leave the EU; • promoting competitive markets and responsible business practices; • ensuring the UK has a reliable, low cost and clean energy system; and • building a flexible, innovative, collaborative, and business facing department.
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