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Department for Business, Energy & Industrial Strategy A Short Guide to the Department for Business, Energy & Industrial Strategy Department for Business, Energy & Industrial Strategy September 2017 Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly About this guide and contacts This Short Guide summarises what the Department for Business, Energy & Industrial Strategy does, how much it costs, recent and planned changes and what to look out for across its main business areas and services. If you would like to know more about the Sian Jones The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller National Audit Office’s (NAO’s) work on Value for Money Director – Business, and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer the Department for Business, Energy Science and Industrial Strategy of the House of Commons and leads the NAO. The C&AG certifies the accounts of all government departments and many & Industrial Strategy, please contact: [email protected] other public sector bodies. He has statutory authority to examine and report to Parliament on whether departments and the bodies 0191 269 1889 they fund have used their resources efficiently, effectively, and James Osborne with economy. Our studies evaluate the value for money of Financial Audit Director – Department for If you are interested in the NAO’s work public spending, nationally and locally. Our recommendations and reports on good practice help government improve public Business, Energy & Industrial Strategy and support for Parliament more widely, services, and our work led to audited savings of £734 million [email protected] please contact: in 2016. 020 7798 7128 [email protected] Michael Kell 020 7798 7665 Design & Production by NAO External Relations Value for Money Director – Energy and DP Ref: 11571-001 Climate Change © National Audit Office 2017 [email protected] 020 7798 7675 2 About this guide and contacts | A Short Guide to the Department for Business, Energy & Industrial Strategy Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly Overview Key facts About the Accountability Where the Department Spending Department to Parliament spends its money patterns Key trends Major projects Key themes Exiting the and programmes from NAO reports European Union 3 Overview | A Short Guide to the Department for Business, Energy & Industrial Strategy Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly Key facts £13.8 billion 19,227 1,900 the Department’s expenditure full-time equivalent staff responses to the across its core activities working for the Department Department’s Industrial in 2016-17 or other bodies in the Strategy green paper departmental group in 2016-17 30% £8.75 billion 17 proportion of national spending by government on number of nuclear demand for electricity that the research and development in reactors and research government aims to be met 2015, out of a total UK spend sites being managed by renewable sources in 2020 by all sectors of £31.6 billion and decommissioned by the Nuclear Decommissioning Authority £175 billion £1.4 billion capital investment by target cost saving for the businesses in the UK in 2016 Sellafield site by 2020 £4.7 billion 11% additional investment for proportion of English research and development households in fuel poverty in in the UK, between 2016 2015 – representing around and 2021 2.5 million households 4 Overview | A Short Guide to the Department for Business, Energy & Industrial Strategy Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly About the Department The Department for Business, Energy & Industry It has four overarching objectives: Strategy (BEIS) was formed in July 2016, following the UK’s decision to leave the European Union and 1 Delivering an ambitious 2 Maximising investment opportunities subsequent Machinery of Government changes. Industrial Strategy and bolstering UK interests It brings together the business and science policy portfolios of the former Department for Business, • Designing and coordinating the • Encouraging inward investment Innovation & Skills (BIS) and the full policy portfolio of Industrial Strategy Working to ensure the economy is the former Department for Energy and Climate Change • Investing in science, research resilient and able to seize opportunities (DECC). It aims to build links between industry, energy • and innovation and climate change, and enable a united focus on • Promoting the interests of UK businesses markets, investors and consumers. As policy lead for • Cultivating world-leading sectors and wider Department interests in EU more than 25 economic sectors, BEIS has one of the and Euratom (European Atomic Energy Supporting businesses to start and grow largest and most complex EU-exit portfolios, and EU- • Community) exit negotiations exit is relevant to all of its departmental objectives. Driving growth across the country • • Building the international profile of the UK The Department’s purpose, as set out in its Annual report and accounts 2016-17, is to: “... drive forward the changes which will build an 3 Promoting competitive markets and 4 Ensuring the UK has a reliable, economy that works for everyone, so that there are responsible business practices low-cost and clean energy system great places in every part of the United Kingdom for Reforming corporate governance Ensuring that the energy system is people to work and for businesses to invest, innovate • • reliable and secure and grow.” • Promoting fairness in the labour market and improving working conditions • Delivering affordable energy for households and businesses • Ensuring the UK has the right regulatory frameworks to help meet business and • Taking action on climate change and consumer needs low-cost decarbonisation • Safeguarding UK interests in critical • Managing the energy legacy national infrastructure (CNI) and mergers 5 Overview | A Short Guide to the Department for Business, Energy & Industrial Strategy Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly Accountability to Parliament Accounting Officers (AOs) in government departments are personally responsible and The four essentials of accountability accountable to Parliament for proper stewardship of the resources allocated to their department. In BEIS, the Permanent Secretary is the AO. A key element of the accountability process is 1 2 the duty of the AO to appear in front of the relevant select committee, in this case the BEIS A clear expression of A mechanism or forum Committee, to explain the performance of his/her department. spending commitments to hold to account and objectives In a February 2016 report, Accountability to Parliament for taxpayers’ money, the NAO found that: • the incentives on an AO to prioritise value for money are weak compared with those associated with the day-to-day job of satisfying ministers; and • in terms of the balance of priorities that AOs have to strike, the emphasis has shifted over a number of years towards political drivers – sometimes at the expense of safeguarding public value. As a result, since mid-2017 each department has been required to produce an Accounting Officer System Statement. The Statement outlines accountability arrangements for all public money falling 3 4 within the department’s policy responsibilities, and all relevant accountability relationships within Clear roles and someone to Robust performance and hold to account the department, such as for arm’s-length bodies and other delivery partners. cost data BEIS expects to publish its Accounting Officer System Statement in autumn 2017. Another new requirement is the introduction of Accounting Officer Assessments. AOs are now required to: • examine whether they should go ahead with each major project, at the outset and at key decision points; and Source: Comptroller and Auditor General, Accountability to Parliament for taxpayers’ money, • assess projects against the standards included in Managing Public Money Session 2015-16, HC 849, National Audit Office, February 2016 (regularity, propriety, value for money and feasibility), and to raise concerns. Key points from the assessments will be shared with Parliament, for all major projects that are approved. 6 Overview | A Short Guide to the Department for Business, Energy & Industrial Strategy Overview Investing in Delivering an Ensuring a reliable, Managing the Appendices science, research Industrial Strategy low-cost and clean energy legacy safely and innovation energy system and responsibly Where the Department spends its money The core Department spent just over £13.8 billion in 2016-17. Administration Of this, it spent just under £3.4 billion on the seven Research Insolvency Service £370m Councils and around £3.2 billion on the Nuclear Decommissioning £75m Non-cash programme costs Authority
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