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Department for Transport Annual Report and Accounts 2017 to 2018

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Department for Transport Annual Report and Accounts 2017 to 2018 Annual Report and Accounts 2017–18 Department for Transport Annual Report and Accounts 2017-18 (For the year ended 31 March 2018) 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 on 12 September 2018 HC1291 This is part of a series of departmental publications which, along with the Main Estimates 2017-18 and the document Public Expenditure: Statistical Analyses 2017, present the Government’s outturn for 2017-18 and planned expenditure for 2018-19. © Crown copyright 2018 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 ISBN 978-1-5286-0777-3 CCS0818384734 09/18 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. 2 Contents Foreword by the Secretary of State 5 The Accountability Report 110 Foreword by the Permanent Secretary 7 Report from the Lead Non-Executive The Performance Report 8 Board Member 113 Overview: How we have performed 10 Corporate Governance Report 115 Our purpose 10 Directors’ Report 116 How we are organised 11 Statement of Principal Accounting Officer’s Responsibilities 123 What we do 13 The Governance Statement 125 Our vision 14 Our strategy 15 People and Remuneration Report 157 Our governance 16 Our people 158 Our risks 17 Remuneration 168 Our performance-at-a-glance 18 Parliamentary Accountability and Audit Report 185 Financial Overview: Director General Statement of Parliamentary Supply 186 Resources and Strategy 25 Parliamentary accountability disclosures 196 Performance Analysis 35 The Certificate and Report of the Comptroller and Auditor General to the House of Commons 203 Boosting economic growth and opportunity 36 Building a One Nation Britain 55 Financial Statements 206 Improve journeys 70 Group statement of comprehensive net expenditure 208 Deliver safe, secure and sustainable transport 81 Group statement of financial position 209 Promote a culture of efficiency in everything we do 89 Group statement of cash flows 210 Single Departmental Plan indicators 96 Group statement of changes in taxpayers’ equity 212 Sustainability Report 101 Statement of changes in taxpayers’ equity 214 Notes to the financial statements 216 Annexes 291 A: Glossary of financial terms 291 B: Expenditure tables 293 “This latest Department for Transport (DfT) Annual Report documents another important year of progress for transport across the United Kingdom (UK). Eight years after we began the huge task of upgrading and modernising our overstretched transport network to provide the resilience and capacity our economy needed to grow, today the delivery of that programme is well underway.” Rt Hon Chris Grayling MP Secretary of State for Transport 4 Foreword Secretary of State for Transport Rt Hon Chris Grayling MP For a country that until recently was tagged as being the outputs of the consultation on airspace modernisation. infrastructure averse developments during 2017-18 have gone This is key to developing a cleaner, quieter and more efficient a long way to changing that image. It was a year in which airspace demonstrating the government’s support for the third works to enable construction of High Speed 2 (HS2) began, largest aviation sector in the world. the first new national rail line in Britain since the Victorian era, with £6.6 billion of contracts awarded for enabling work and The UK’s maritime sector continues to make an important civil infrastructure. We opened the Ordsall Chord rail bridge, contribution to our economy generating £14.5 billion in 2016 linking Manchester’s 3 main railway stations for the first time, and directly supporting an estimated 186,000 jobs. There as part of the government’s £13 billion investment in northern has been more investment in training and real progress on transport. We also won strong support in Parliament for a environmental agreements in the sector. Autumn 2017 also third runway at Heathrow to address urgently needed airport saw another highly successful London International Shipping capacity that will benefit the whole country. Week, hailed by our maritime industry as the best yet. The prospects for improving rail services were enhanced at Nevertheless, the year brought its own challenges. In October the end of 2017 when we launched our new Strategic Vision 2017 we stepped in to repatriate 84,000 Monarch passengers for Rail. This included measures to end the operational divide affected by the airline’s failure. It was the biggest operation between track and trains, strengthen the regional focus in British peacetime history. And at a time of massive of the railway, and explore reopening some of the routes demand on the railway, I shared passengers’ frustration at closed during the 1960s and 1970s. Joined-up management the widespread disruption caused by strikes and the failed and simpler, more accountable structures will help sort out introduction of the new rail timetable in May 2018. I am sorry problems on the network faster, and rebuild the railway that services were so badly affected. To find out what around the passenger. Alongside the new rail strategy, we happened and make sure it never occurs again, I set-up an continued to deliver major upgrades to the rail network that inquiry to be carried out by the independent Office of Rail will improve journeys, and open up access to the railway. and Road. These include completing the first stage of the upgrades to Liverpool Lime Street, opening the new £23 million Blackburn Throughout the year we continued to deliver our £15 billion roads depot, announcing £337 million for a new fleet of trains for the investment programme including completion of the Leeming Tyne and Wear Metro and completion of major engineering to Barton stretch of the A1, which means you can travel on works at Waterloo and London Bridge Stations. motorway grade road from London to Newcastle for the first time. We built the case for other major projects like Crossrail 2 Another key announcement was the £1.7 billion Transforming and Northern Powerhouse Rail. We also launched the Year of Cities Fund. Many English cities have poor connectivity, the Engineer 2018 to promote careers in engineering, and help particularly between housing and places of work. The launch recruit the next generation transport workforce. of the Transforming Cities Fund is a key part of delivering the government’s modern Industrial Strategy, supporting public Of course, preparation for Britain’s withdrawal from the European transport projects that will increase productivity and ease Union (EU) has been one of our biggest priorities over the congestion. The first £840 million of the fund has begun to last year. Securing a good deal for the transport industry is be allocated to 6 Mayoral Combined Authorities, among the one of our major objectives. The Haulage Permits and Trailer beneficiaries are Liverpool, the West Midlands and Greater Registration Bill successfully achieved Royal Assent in July 2018, Manchester. which will help us support UK hauliers after we leave the EU. The Department also progressed work on over 60 Statutory Initiatives like the Future of Mobility Grand Challenge and Instruments needed to ensure that, whatever the outcome of the Automated and Electric Vehicles Bill – which passed the negotiations, the UK’s statute book continues to function successfully through Parliament – will help make Britain a smoothly. leader in the way people, goods and services move. They provide further opportunity for the Department to develop its It has been a busy but successful year – as I’m sure 2018-19 role as a world leader in transport technology. For example, will be too. As we look ahead to our future plans, I would like our aim is that by 2050 almost all of the cars and vans on UK to thank my ministerial team and everyone in the DfT family for roads will be zero emissions. In May 2018, we unveiled a digital all their hard work. railway strategy which will modernise the rail infrastructure, improving efficiency and reliability for passengers. And we have worked closely with the aviation industry to take forward 5 “The Annual Report and Accounts sets out what the Department and its delivery bodies have achieved over the last year with the money allocated by Parliament. The report also provides an overview of how we are organised and governed as well as providing details on our people and our finances.” Bernadette Kelly CB Permanent Secretary and Principal Accounting Officer 6 Foreword Permanent Secretary Bernadette Kelly CB I am pleased to report the excellent progress we have I am particularly proud of the work we have done to support made over the year in delivering the government’s priorities investment in skills, especially the work the Department for transport across all modes. This is down to the has led on the Year of Engineering, which has seen over professionalism and hard work of all our people. 1,300 partners get involved in our campaign to inspire a new generation of young people to become engineers. Our THINK! In aviation, we undertook 2 public consultations on the draft road safety campaigns have also been a big success, using Airports National Policy Statement (NPS), setting out the innovative social media techniques to reach target audiences.
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