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Estimate Memorandum Department for Culture, Media and Sport 2016

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Estimate Memorandum Department for Culture, Media and Sport 2016 Estimate Memorandum Department for Culture, Media and Sport 2016-17 Main Estimate Overall Summary The Department for Culture, Media and Sport (DCMS) is committed to driving growth, enriching lives and promoting Britain to the world. We're doing this by investing in innovation, backing the creative industries, leading the digital revolution and spreading the benefits of our thriving tourism and heritage industries right across the country. We're also determined to defend a free press, and keep people safe online. We are responsible for the competition and policy issues relating to media, broadcasting, digital and telecoms sectors, including Ofcom’s activities in this area, and issues relating to cyber security and data protection. In art, music, fashion, theatre, film, video games, design, TV, performing arts and Digital - we are leading the world, enhancing our national prestige and boosting our economy. This Main Estimate seeks the resources and cash to keep that possible, and to give our industries the framework to grow and make a real impact on people's lives. This memorandum provides the Select Committee with an overview of the spending plans following SR 2015 Table 1. Compares Final Provision for the last year of SR2010 the final plans derived from SR2013 and the four year spending plans following SR2015. Table 2. Compares Grant in Aid funding from the final year of SR2010 against final provision for 2015 and plans data for 2016-17. TABLE 1 £'000s Comparison of the last year of SR2010, plans provision derived from SR2013, & SR2015 adjusted by re-classification of R&D data Final Final Plans data Plans data Plans data Plans data Outturn Provision 2016-17 2017-18 2018-19 2019-20 2014-15 2015-16 Total Resource Departmental Expenditure Limit (DEL) excluding ring-fenced depreciation1 1,184,102 1,198,180 1,182,940 1,145,063 1,145,237 1,105,780 of which: -Administration Budget excluding depreciation 134,838 156,643 136,209 132,180 130,083 128,916 -Ring-fenced depreciation 103,925 184,708 161,663 171,995 186,293 198,854 -Non-Voted Resource DEL ‐52,594 ‐61,800 ‐61,800 0 0 0 Capital DEL 243,395 382,668 383,700 394,000 376,500 302,500 Resource Annually Managed Expenditure (AME) - voted 3,338,664 3,378,173 3,454,788 0 0 0 Capital AME - voted 2 141,453 50,339 116,743 0 0 0 Resource AME - non-voted 1,594,409 1,235,321 1,189,222 0 0 0 Capital AME - non-voted 601,444 476,277 447,593 0 0 0 1 Difference from the Core Tables in 2014 Annual Resource and Account and the 2015-16 Supplementary Estimate is the result of several Machinery of Government changes involving the removal of the Government Equalities Office and the Equality and Human Rights Commission and the addition of the Digital Economy Unit, the Data Inclusion Unit, Data Protection and the Information Commissioners Office. In addition it includes the re-classification of Research and Development Expenditure from Resource to Capital DEL. 2 The Significantly reduced Capital AME figure in 2015-16 reflects BBC income from the sale of assets remaining after the sale of Media City, scoring in this year. Significant Areas of Funding in SR 2015 700MHz Spectrum clearance In the 2015 Spending Review it was announced the government will invest up to £550 million during this Spending Review period to make the 700 MHz spectrum band available for mobile broadband use. Clearance of the 700MHz band is expected to be completed by Jan 2022 at the latest. Blythe House In the Spending Review it was announced the government will invest £150 million to support the British Museum, Science Museum and Victoria and Albert Museum to replace out of date museum storage at Blythe House with new world-class storage facilities to preserve, protect and make accessible over two million fragile and sensitive objects. Although a seven year programme, £140m of this spend falls within this Spending Review period. By the end of the programme, Blythe House will be sold to generate a capital receipt back to HM Treasury. Broadband In the 2015 Spending Review the government confirmed its commitment to provide superfast broadband coverage to 95% of the UK by end 2017. Included in the Main Estimate for 2016-17 is capital expenditure of £120.0m for Phase 2 of the Superfast Broadband programme Discover England Fund The £40m Discover England Fund announced in the Spending Review is designed to support the government’s Five Point Plan for Tourism. The new fund is a boost for the UK’s tourism industry and recognition from the government that the sector has been at the forefront of the UK’s economic recovery. The Tourism Alliance estimates that the funds will boost tourism revenue by more than £600m over a three-year period, creating almost 4,000 new jobs across the country. Official Development Assistance – Cultural Protection Fund The government published its strategy for Official Development Assistance (ODA), “UK Aid: tackling global challenges in the national interest,” on 23 November 2015. This sets our how the government will make UK aid more effective in its interdependent objectives to tackle global challenges, reduce poverty and serve the national interest. As part of the ODA allocation process DCMS will receive £30m over the SR period for the Cultural Protection Fund. The Cultural Protection Fund is a government-backed scheme to protect cultural sites from the destructive forces of war and ISIL terrorists. It will create a team of local experts to assess, document and stabilise afflicted sites in Iraq, and help begin the process of reconstruction and preservation of some of the world’s most precious cultural artefacts. LIBOR funding The London Interbank Offered Rate, or LIBOR, is a key short-term interest rate that reflects the rates that banks use when they borrow from each other day-to-day. Interbank borrowing is carried out by financial institutions looking to maximise profits on short-term holdings or cover short-term liquidity shortfalls. The discovery that some institutions had manipulated this rate led to the Financial Services Authority imposing fines on the banks in question. DCMS has been allocated £14 million funding in the Spending Review from these fines to preserve, repair and protect First World War memorials and burial sites and to commemorate the events leading up to the Armistice in November 1918 China EFD funding Building on the 2015 Economic and Financial Dialogue announcements, which included £3.0m funding for the Royal Shakespeare Company to tour China, the Chancellor confirmed on a visit to Beijing in September 2015 additional support measures (which have been allocated to DCMS in the Spending Review). These include £1.6 million for the British Library to display some of its most iconic literary treasures in China for the first time ever, £1.3 million to support the presentation in China of Tate’s exhibition ‘Landscapes of the Mind: British Landscape Painting (1700 – 2007)’ and £0.74 million of funding to ensure that the British Museum’s exhibition, “A History of the World in 100 Objects” can be exhibited in China for the first time. London Concert Hall Business Case The need for a better concert hall in London was highlighted in February by Sir Simon Rattle, who is due to return to Britain as principal conductor at the London Symphony Orchestra in 2017. In February 2015 the Chancellor and the London Mayor commissioned a feasibility study on whether a new venue was needed and where it could go. When the findings by the panel, chaired by former National Theatre artistic director Sir Nicholas Hytner, were released before Christmas, the government said it would provide £5.5m to fund a full business case for the planned hall, which would be home to the LSO under Sir Simon Rattle. The City of London Corporation backed the plan to use the current Museum of London site. Under the plan, the Museum of London would move to a new site in Smithfield Market, East London. Tech North An additional £4 million has been allocated to Tech North. Established in 2015, Tech North is a government-funded initiative, funded via Tech City UK. The specific goal of Tech North is to accelerate the development of the North’s digital economy through the promotion and support of digital entrepreneurship. Their remit is to attract talent, entrepreneurs and investment to the North of England specifically the seven cities of Hull, Leeds, Liverpool, Manchester, Newcastle, Sheffield and Sunderland. Working in collaboration and partnership with stakeholders across the North they aim is to address the challenges tech entrepreneurs face in accessing finance, support, mentorship and talent. Museum’s Freedoms package The package of operational and financial freedoms granted to museums and galleries in 2013 has now been made permanent and extended to include an exemption from the requirement to enrol new starters in the Civil Service Pension Scheme. To encourage museums and galleries to develop creative new exhibitions and display their collections for a wide audience, the Government will explore with the sector the case for introducing a new tax relief for museums and galleries. The financial freedoms has now been extended to include Historic England, the Churches Conservation Trust and the British Film Institute. Comparing the Grant in Aid funding of our Arm’s length bodies in 2014-15, through to 2016-17 Table 2 £'000s % (-) 2014-15 2015-16 reduction 2016-17 Arm’s Length bodies that receive Grant in Aid Final Final (+) increase Plans Outturn Provision over 2015- 16 British Museum 43,215 41,768 49,740 19.09% Natural History Museum
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