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BIS Annual Report and Accounts 2010-11

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BIS Annual Report and Accounts 2010-11 Annual Report and Accounts 2010 –11 HC 1001 JULY 2011 £37.00 Department for Business, Innovation and Skills Annual Report and Accounts 2010 –11 (For the year ended 31 March 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 Ordered by the House of Commons to be printed 18 July 2011 HC 1001 London: The Stationery Office £37.00 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 http://www.nationalarchives.gov.uk/doc/open-government-licence/or e-mail: [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 Business, Innovation & Skills Cental Finance Team 1 Victoria Street London SW1H 0ET This publication is available for download at www.official-documents.gov.uk. This document is also available from our website at www.bis.gov.uk. ISBN: 9780102973686 Printed in the UK by The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID: 2438533 07/11 Printed on paper containing 75% recycled fibre content minimum. Contents Chapter 1: Introduction 5 About the Department for Business, Innovation & Skills 5 The BIS Ministerial Team 8 The BIS Management Team 9 Chapter 2: Performance Report 10 Business Plan Reporting 10 Input and Impact Indicators 21 Better Regulation 23 Chapter 3: Managing the Department 26 Introduction 26 Corporate Governance Structure: 26 Remuneration Report 31 People 43 Health and Safety 44 Communications 45 Environmental Report and Sustainable Development 47 Non-Departmental Public Bodies 49 PAC Recommendations 49 Complaints 49 Chapter 4: Financial Overview 50 Introduction 50 Financial Review 52 Chapter 5: Consolidated Accounts 68 Statement of Accounting Officer’s responsibilities 68 Statement on internal control 69 The Certificate and report of the Comptroller and Auditor General to the House of Commons 76 Primary Statements 78 Notes 87 Annexes Annex A: BIS Ministerial Team 2010-2011 204 Annex B: Governance Structure (April 2010 – Feb 2011) 205 Annex C: Annex to Financial Overview 209 Annex D: Expenditure Tables 212 1 Foreword by the Secretary of State for Business, Innovation and Skills Everything we do at the Department for Business, Innovation and Skills (BIS) is aimed in some way at supporting sustainable economic growth – the Government’s top priority as we seek to recover from Britain’s financial and economic crisis. We see recovery across the economy and in every region of the country – growth which underpins the Government’s broader commitments to fairness, social mobility and stronger communities. We made good progress on this agenda in 2010-11. Alongside the Treasury, we issued a plan for growth to run for the lifetime of this Parliament. It sets out what the Government will do to make the UK the best place in Europe to start or grow a business: how we are supporting the private sector, especially SMEs, in obtaining better access to banks and other sources of finance, and in decisions on tax, regulation and spending; how we are promoting trade particularly in the emerging markets’ economies; and how we are investing in skills. To this end, we have announced a Green Investment Bank, the first of its kind in the world, to accelerate private investment as the UK shifts to a low-carbon economy. We have exceeded our ambition to double the numbers of apprenticeship places, while the Higher Education White Paper sets out the future for the university and college sector – a major contributor to the success and wellbeing of this country. We have protected the science budget and given priority to a series of Technology Innovation Centres. I am grateful to the talented, dedicated and hard-working staff throughout BIS and our partner organisations who have helped to deliver these achievements. Over the next year we will go further and faster in driving growth and informing the world that the UK is open for business. Rt Hon Dr Vince Cable MP 2 Foreword by the Permanent Secretary of the Department for Business, Innovation and Skills The Department for Business, Innovation and Skills is focussed on delivering the Government’s goal of sustained and balanced growth. I and the executive team work closely with our Ministers to help deliver a robust recovery. We are directly supporting businesses by promoting enterprise and trade, greater innovation and fairer markets. And we aim to provide everyone with the opportunity, through training and learning, to get on in life and work. Sustainable growth requires a series of inputs from BIS. We work to: • Make it easier for enterprises to start, grow and invest in their future • Create markets that serve the lasting interests of businesses and consumers • Support inward investment and UK trade overseas • Stimulate innovation, and commercialisation of science and research • Promote more opportunities for individuals to realise their potential. Over the past year we have taken a number of steps to support growth and higher skills across the economy. Since November 2010, BIS and HMT have, with business, undertaken fundamental assessments of what each part of Government is doing to create the best conditions for private sector growth. This rolling programme will last the lifetime of this Parliament. We are working closely with Higher and Further Education institutions to create a world class system that is sustainable for the future. In May 2011 we published a new strategy on consumer empowerment, putting more informed choice and decision-making powers into the hands of consumers – in turn driving greater innovation, competition and growth. To deliver our growth objective most effectively within our Spending Review settlement we have reformed the way that the Department works. Since autumn 2010, BIS has gone through a major restructuring exercise: reducing staff numbers, focusing on priorities, redesigning teams to provide clearer accountabilities, and building our capability to be more flexible and better connected with key stakeholders. 3 BIS Annual Report and Accounts 2010-11 Our partner organisations have also restructured and reformed to become more accountable, efficient and focused. They continue to play their vital role in making government policy happen and deliver a high quality service. Throughout these changes, BIS staff both in the core Department and our colleagues in our partner organisations have continued to deliver an exceptional service. I am proud to lead a Department engaging on the vital growth agenda with great enthusiasm and professionalism. Martin Donnelly 4 Chapter 1 Introduction 1.1 About the Department for Business, Innovation & Skills The financial year 2010 to 2011 was one that saw a number of significant challenges, changes and successes for BIS. The 2010 General Election produced a new Government, meaning a change of Ministerial Team and a new strategic direction for the Department. The incoming Government confirmed that BIS would be the Department for Growth – the Government’s number one priority. To deliver this overarching objective BIS has been tasked with delivering nine priorities that will support the sustainable growth of the UK economy. These nine priorities are detailed in the Department’s Business Plan1, which was published in November 2010. This Annual Report and Accounts sets out how the Department spent its resources in 2010-11 in support of this Business Plan, and the success BIS has had in delivering these priorities. BIS in 2010-11 In October the Government announced the Spending Review settlement for BIS, including significant reforms across all areas of BIS budgets, and in particular higher and further education. These announcements put the foundations in place to reduce the BIS budget by 25% and at the same time support sustainable growth. Progress so far: • Supporting universities, science and research in building a strong innovative economy: – In October 2010 BIS published the Government’s response to the Browne review, setting out a package of reforms to ensure long-term growth by securing the future funding of world class universities. These reforms will deliver very significant savings across the higher education budget by 2014-15 and rebalance the funding of higher education from the taxpayer to the graduate. – To support the UK’s innovative economy BIS has set out changes to the Research Excellence Framework, including a robust method for assessing the economic impact of research and demonstrating BIS’s continued commitment to funding science and research as an engine of growth. 1 The BIS Business Plan can be found at http://www.bis.gov.uk/about/business-plan 5 BIS Annual Report and Accounts 2010-11 • Building an internationally competitive skills base: BIS is investing in a world class skills base – including significant further investment in apprenticeships. Budget 2011 announced that £177 million would be available to fund an extra 50,000 apprenticeships by 2014-15. • Rebalancing the economy across sectors and regions: – As part of the Department’s role in leading the growth agenda BIS published the Government’s Plan for Growth jointly with HM Treasury alongside Budget 2011 and established the Cabinet Banking Committee and Independent Banking Commission. – BIS published plans for a Regional Growth Fund, and proposals for Local Enterprise Partnerships as part of our work to rebalance the economy across the regions.
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