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Rural Payments Agency Annual Report and Accounts 2019-2020 HC 427

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Rural Payments Agency Annual Report and Accounts 2019-2020 HC 427 Annual Report and Accounts 2019-2020 Rural Payments Agency Annual Report and Accounts 2019-2020 HC 427 www.gov.uk/rpa HC 427 . © 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 [email protected] ISBN 978-1-5286-1967-7 CCS0520639270 07/20 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 Contents Performance Report ............................................................................................................................. 4 Chief Executive Officer’s Statement .......................................................................................................... 5 Non-Executive Chair of the Agency Management Board Statement ........................................................ 7 Highlights of the year ................................................................................................................................. 9 Purpose and Objectives ........................................................................................................................... 12 Performance Overview ............................................................................................................................ 14 Performance Analysis ............................................................................................................................... 15 Accountability Report ......................................................................................................................... 28 Corporate Governance ............................................................................................................................. 29 Statement of Accounting Officer’s responsibilities ................................................................................. 34 Remuneration and Staff ........................................................................................................................... 40 Parliamentary Accountability and Audit .................................................................................................. 54 Financial Statements .......................................................................................................................... 60 Account Statements ................................................................................................................................. 61 Notes to the Accounts .............................................................................................................................. 65 3 Performance Report 4 Chief Executive Officer’s Statement Paul Caldwell I am enormously proud of what our people have delivered for the agricultural and rural communities we serve. Now more so than ever before, our role in empowering these communities to create a better place to live is critical. As part of Defra Group, our people have played a key role in shaping the future as we continue to change our culture, delivering through our passionate and hugely knowledgeable workforce and further improving our performance which, as this report will show, has been better than ever before. This year has been extraordinary for many reasons. It has made many of us reflect on our priorities in life and in society, and there is a renewed focus on the communities in and around us. Recent events have also created an opportunity for us to push boundaries and to develop new innovative responses to the challenges we have faced in recognition of the disruption caused by Coronavirus (Covid-19). The Rural Payments Agency has risen to these challenges in a positive way, continuing to deliver our services to our customers. Our chair, Elizabeth Passey summarised my thoughts perfectly when she said ‘I cannot tell you how proud the Agency Management Board is of the agency, and the speed at which you adapted to enable your roles, serving the farming and rural communities of our countries, by moving to working from home at a startling pace.’ In terms of delivery, 2019 was another successful year for our land based schemes with record breaking numbers of farmers receiving payments earlier than ever before. Our Basic Payments Scheme continues to pay over 99% of claims. 2019 was our first full year administrating the Countryside and Environmental Stewardship schemes putting over £186.15 million into our rural economy. We launched the second round of the Countryside Productivity Small Grant scheme which was extremely popular with farmers and rural businesses. It is fantastic to see this funding harnessing a range of innovative technology to provide a real boost for productivity across the farming sector in England. I am delighted that we have been able to help unlock access to new equipment for many farmers to the value of £19.7 million. But I’ve often said that the agency is so much more than simply making payments. The reason we do what we do is to make the country a better place for our rural communities, be this through agriculture or through socioeconomic means, creating a vibrancy which enables a thriving economy and a healthy countryside for everyone. This is our purpose. One of the means by which we enable this to happen is through payments. I want to also reflect on our outstanding scheme delivery, our services, our products and our people. We have achieved international recognition for the accuracy of our land data which is also one of the most strategically important data sets for Defra. We have continued to focus on how to improve access to the range of services we offer. Our transformation capability has helped us introduce new and quicker ways to apply to schemes, reducing the burden on farming communities and our people. 5 Earlier this year we were approved as the delivery partner for the end to end administration of the Environmental Land Management scheme pilot. The Environmental Land Management scheme will be the cornerstone of our new agricultural policy and it will transform how government supports the agricultural sector and our experience and capability will add much value. This is a fantastic opportunity for our people to help deliver and shape the new scheme. As well as the Environmental Land Management scheme, there will also be greater use of grants and support for innovative activity, the skills and knowledge we have in running our Rural Development schemes will continue to be important in supporting productivity and welfare, promoting innovation and support to contribute to reducing carbon and water use. Our work on the Livestock Information Programme will further empower rural communities – with better use of information and data for animal health and welfare – much more than simply tracing. Over the past year we have focussed on the most important asset we have, our people. They are at the heart of everything we do and many live in the communities that we serve. Our ambition is to continue to foster an environment where everyone can thrive and develop. The challenges caused by Covid-19 have brought out the best in our people quickly adapting to new ways of working in a positive way. I would like to thank them for their efforts and hard work across the year. All of our people remain committed to focussing all of our resources to help create thriving businesses, sustainable economies and enhance the countryside in our rural and agricultural communities. Paul Caldwell Chief Executive and Accounting Officer 10 July 2020 6 Non-Executive Chair of the Agency Management Board Statement Elizabeth Passey The agricultural and horticultural sectors face unprecedented challenges, none more so than exhibited in the last year. The Rural Payments Agency has been dealing with a range of challenges of its own; preparing for EU Exit, dealing with continuing downward pressure on public spending; and most recently, responding to the experience of Covid-19 – the latter of which has left no individual or business alone. I am very proud of the achievements of the agency in 2019-20 and I would like to thank all of our people for their hard work, much of which lays the bedrock for our stakeholders, and the general public’s future. All of these items have brought uncertainty and challenge to our customers; and also to us as an organisation and group of private individuals. Through all of this period, I have been struck by the innovation, resilience, professionalism and humanity of the staff within the agency; and by their willingness to adapt. I have also been struck by the patience and understanding of our customers, whilst they grapple with the issues themselves, as we work together to achieve a common, effective and good outcome for all. One of the agency’s role is to disburse funding to those managing our agricultural and horticultural environments, and this has never been more pivotal. The role of predictable and timely cash flow provision is critical to a healthy and functioning sector. With the backdrop of unpredictability, although there is more to do, we have managed to further enhance our reputation and been commended by the Environment, Food and Rural
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