Departmental Overview, October 2018

Department for Digital, Culture, Media & Sport Department for Digital, Culture, Media & Sport If you would like to know more about the National Audit Office’s CONTENTS This overview summarises the work of the Department for Digital, Culture, Media & Sport (the Department) including what it does, how much it spends, recent and planned changes, and what to lookDepartment out for across its main business for areas Digital, and services. This overview summarises the work of the Department for Digital, Culture, Media (NAO’s) work on the Department for Digital, Culture, Media & Sport, ContentsCulture, Media & Sport & Sport (the Department) including what it does, how much it spends, recent please contact: Overview and planned changes, and what to look out for across its main business areas About the Department The Department’s strategic aims and services. Sid Sidhu, Director, Financial Audit How the Department is structured Where the Department spends its money [email protected] Major programmes and developments 020 7798 7489 Exiting the European Union ManagingOverview public money Contents OverviewBookmarks Part One About the Department If you are interested in the NAO’s The Department’sN A O reports strategic aims How thePart Department Two is structured work and support for Parliament more WhereArts the and culture Department spends its money widely, please contact: MajorPart programmes three and developments Broadband access Exiting the European Union [email protected] ManagingPart fourpublic money Part oneSports About the Department The Department’s How the Department Where the Department 020 7798 7665 FundingPart for five good causes – the National Lottery Regulationwhat toof lookcharities out for – the Charity Commission strategic aims is structured spends its money Part two Arts and culture 2017-18 development: Museum reviews Part three Broadband access Part four Sports Part fiive What to look out for Major programmes Exiting the Managing public money and developments European Union The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of PART ONE PART TWO PART THREE PART FOUR PART FIVE Commons and leads the NAO. The C&AG certifies the accounts of all government departments and many other public sector bodies. He has statutory authority NAO reports Arts Broadband Sports What to look to examine and report to Parliament on whether and culture access out for departments and the bodies they fund, nationally and locally, have used their resources efficiently, effectively, and with economy. The C&AG does this through a range of outputs including value-for-money reports on matters of public interest; investigations to establish the underlying facts in circumstances where

concerns have been raised by others or observed Media & Sport Department for Digital, Culture, through our wider work; landscape reviews to aid | transparency; and good‑practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of £741 million in 2017.

Design & Production by NAO External Relations DP Ref: 005161-001 Departmental Overview 2018

© National Audit Office 2018 2 OVERVIEW CONTENTS About the Department Overview About the Department The Department Department for Digital, Culture, Mediafor &Digital, Sport (the Department) Culture, is responsible Media for delivering & theSport government’s (the policy Department)covering arts and culture, communications is responsible and media, sport, for tourism, building a shared society and digital connectivity. deliveringThe Department has fivethe strategic government’s aims to: policy covering arts and culture, communications and media, £6.8 promote the UK on the global stage; growsport, the economy; tourism, building a shared society and digital connectivity. champion digital connectivity; billion •maximise The participation Department in arts, culture and has sports; five and strategic aims to: protect and promote local civil society. The Department also has a sixth corporate objective to ensure the Department is agile and efficient. (Source:• Department promote of Digital, Culture, the Media UK & onSport Singlethe Departmentalglobal Planstage;, updated 23 May 2018). The Department is one of the smallest in government in terms of both its budget and number of staff. However, it has more than doubled its staffing in the past five years from 377 in 2012 to 13 to 864 in Total net expenditure 2017-18, as a resultgrow of new the priorities economy; relating to exiting the European Union and new digital priorities, and expects recruitment related to exit from the European Union to cause it to grow further in 2018-19. The Department’s• net expenditure for 2017-18, including National Lottery distributing bodies (1.7 billion pounds) and the BBC 3.2 billion pounds), was 6.8 billion pounds. in 2017-18, including the The Department has a relatively small head office; it implements policy through circa 40 arm’s‑length bodies, across a range of activities and sectors. BBC and lottery funding In 2017-18,• 79%champion of adults had engaged digital with the arts,connectivity; 73% of adults had visited a heritage site, 50% had visited a museum or gallery, and 33% had used a public library service. Additionally, 50.5% of adults were aware of local or national events or activities between 2014 and 2018 to commemorate the Centenary of the First World War, 30.6% of adults had digitally participated in culture (such as visiting a museum or gallery website to look at items from a collection), and 29.2% of adults had done voluntary work at least once. The BBC• is independentmaximise from the Department, participation but the BBC’s net in expenditure arts, onculture public broadcasting and activitiessports; is included and within the Department’s financial statements. Since April 2017, the NAO has audited the BBC’s accounts. protect and promote local civil society. The graphics• show.

The6.8 billion Department pounds also has a sixth corporate objective to ensure the Department is agile and efficient. (TotalSource: net expenditure Department in 2017-18, including of theDigital, BBC and lotteryCulture, funding Media & Sport Single Departmental Plan, updated 23 May 2018). 79% 79% •Percentage The of adults Department who engaged with is the arts one in 2017-18of the smallest in government in terms of both its budget and number of 5.6 billionstaff. pounds However, it has more than doubled its staffing in the past five years from 377 in 2012‑13 Value of toland 864and buildings in 2017 on the Department’s-18, as balancea result sheet of new priorities relating to exiting the European Union and new digital priorities, and expects recruitment related to exit from the European Union to cause it Percentage of adults to grow further in 2018-19. who engaged with • The Department’s net expenditure for 2017-18, including National Lottery distributing bodies the arts in 2017-18 (£1.7 billion) and the BBC (£3.2 billion), was £6.8 billion.

• The Department has a relatively small head office; it implements policy through circa 40 arm’s‑length bodies, across a range of activities and sectors. • In 2017-18, 79% of adults had engaged with the arts, 73% of adults had visited a heritage £5.6 site, 50% had visited a museum or gallery, and 33% had used a public library service.

Additionally, 50.5% of adults were aware of local or national events or activities between 2014 billion Media & Sport Department for Digital, Culture, and 2018 to commemorate the Centenary of the First World War, 30.6% of adults had digitally | participated in culture (such as visiting a museum or gallery website to look at items from a collection), and 29.2% of adults had done voluntary work at least once. Value of land and buildings on the The BBC is independent from the Department, but the BBC’s net expenditure on public • Department’s broadcasting activities is included within the Department’s financial statements. Since April 2017, balance sheet the NAO has audited the BBC’s accounts. Departmental Overview 2018

3 OVERVIEW CONTENTS The Department’s strategic aims

The Department’s strategic aims 1 Global Drive international trade, attract investment and promote shared values around the world – promoting the UK as a great place to live, work and visit. Objectives include: Deliver strategies and leadership on trade for digital, tech, cultural and creative industries. 1 2 3 Help to deliver a successfulGlobal outcome from the EU exit negotiations. Growth Digital connectivity Promote Britain across the world and back the tourism sector. Successfully host majorDrive sporting events. international trade, attract investment Grow an economy that is creative, innovative Continually improve the UK’s connectivity, 2 and promote shared values around the and works for everyone. Objectives include: telecommunications and digital sectors. Growth world – promoting the UK as a great place Objectives include: Grow an economy that is creative, innovative and works for everyone. Objectives include: Build an inclusive partnership with to live, work and visit. Objectives include: • Build an inclusive partnership with business and the finance sector. business and the finance sector. • Deliver a world-class broadband Develop a world-leading digitalDeliver economy, strategies digital charter and centre leadership for data ethics. on infrastructure and maintain a world-class Support the economic• success of the creative industries. trade for digital, tech, cultural and • Develop a world-leading digital economy, communications infrastructure. Promote the functioning of efficient telecoms markets. digital charter and centre for data ethics. Improve cyber security. creative industries. • Clear the 700 MHz spectrum for mobile Promote digital skills. Support the economic success of the 3 • Help to deliver a successful outcome from • broadband use. Digital connectivity the EU exit negotiations. creative industries. Continually improve the UK’s connectivity, telecommunications and digital sectors. Objectives include: • Make the UK a world leader in 5G. Deliver a world-class broadbandPromote infrastructure Britain and maintain across a world-class the world communications and back infrastructure. • Promote the functioning of efficient • Stimulate delivery of Local Full Clear the 700 MHz spectrumthe for mobiletourism broadband sector. use. telecoms markets. • Make the UK a world leader in 5G. Fibre Networks. Stimulate delivery of• Local SuccessfullyFull Fibre Networks. host major sporting events. • Improve cyber security. Enhance the security and resilience of the telecoms sector. • Enhance the security and resilience of the 4 • Promote digital skills. telecoms sector. Participation Maximise social action, and participation in culture, sport and physical activity. Objectives include: Increase participation in and access to arts, culture, sports and physical activity. Build a sustainable future for libraries. Protect, preserve and promote museums, cultural property and the art market. Promote and protect the historic environment. Deliver ceremonial and commemorative activities. Make public appointments that represent diverse sectors and communities. 5 6 5 4 Society Agile and efficient Society Participation Make our society safe, fair and informed, online and offline. Objectives include: Make our society safe, fair and informed, online Ensure the Department is fit for the future with Support a healthy, sustainableMaximise and worldsocial‑leading action, UK media and market. participation Ensure a strong, independentin culture, and distinctive sport public and service physical broadcasting system. activity. and offline. Objectives include: the right skills, culture and connections. Promote the social Objectives include:contribution of the creative industries. Support civil society organisations to thrive. • Support a healthy, sustainable and This includes collaborating with the Enable the National• Lottery Increase and other lotteries participation to thrive. in and access to world‑leading UK media market. Department’s arm’s‑length bodies to deliver Maintain a safe and open arts,internet. culture, sports and physical activity. its objectives. Honour individuals and organisations that make exceptional contributions to society. • Ensure a strong, independent 6 • Build a sustainable future for libraries. and distinctive public service Agile and efficient broadcasting system. Ensure the Department• is Protect,fit for the future preserve with the right and skills, promoteculture and connections. museums, This includes collaborating with the Department’s arm’s‑length bodies to deliver its objectives. Promote the social contribution of the Source: Department for Digital,cultural Culture, property Media & Sport and Single theDepartmental art market. Plan, updated 23 May 2018 •

creative industries. Media & Sport Department for Digital, Culture, • Promote and protect the | historic environment. • Support civil society organisations to thrive. • Deliver ceremonial and • Enable the National Lottery and other commemorative activities. lotteries to thrive. • Make public appointments that represent • Maintain a safe and open internet. diverse sectors and communities. • Honour individuals and organisations that Source: Department for Digital, Culture, Media & Sport make exceptional contributions to society. Single Departmental Plan, updated 23 May 2018 Departmental Overview 2018

4 OVERVIEW CONTENTS How the Department is structured TheHow the table Department below is structured lists ALBs and bodies sponsored by the Department that (withHeritage the exception of Channel 4, Historic Royal Palaces and The Royal Parks) The table below lists ALBs and bodies sponsored by the Department that (with the exception of Channel 4, Historic Royal Palaces Historic England areand The included Royal Parks) are in included the Department’sin the Department’s consolidated consolidated accounts. The Department accounts. sponsors The two non-ministerial Department de- sponsorsChurches Conservation Trusttwo non-ministerial departments with a high degree of operational independencepartments with a high degree from of operational government: independence from The government: National The National Archives Archives and and the Charitythe Commission.Charity Commission.Heritage Lottery Fund (and National Heritage Memorial Fund) Director General, Performance and Strategy Responsibilities include: Tourism Arts, Heritage and Tourism; British Tourist Authority (operates as VisitBritain and VisitEngland) GamblingDirector and Lottery General,policy; Performance and Strategy Director General, Digital and Media Finance and Commercial Office for Civil Society; Gambling Sport andResponsibilities Commonwealth Games; include: and Responsibilities include:Gambling Commission Strategy and Governance. Horserace Betting Levy Board • Arts, Heritage and Tourism; • BDUK (Broadband Delivery UK); Director General, Digital and Media Sport • Gambling and Lottery policy; 1 Responsibilities include: • Digital and Technology;Sport England Chief Scientific Officer B D U K (Broadband Delivery UK); Sports Ground Safety Authority • Office for Civil Society; Digital and Technology (please note: from April 2018 includes transfers of Government Digital Service and• policyTelecoms; responsibility for UK Anti-Doping Advises policy on science, technology, digital •signatures Sport from theand Cabinet Commonwealth Office and Department Games; for Business, and Energy & Industrial Strategy respectively UK Sport engineering and mathematics Telecoms; • Media and Creative Industries; Media •and CreativeStrategy Industries; and Governance. Civil society EU International; and • EU International; andBig Lottery Fund Cyber Security and Data Protection. • Cyber Security and OtherData Protection. Finance and Commercial Phone-paid Services Authority National Technology Adviser 1 from April 2018 includes transfers of Government Digital Service and policy responsibility for digital Chief Scientific Officer signatures from the CabinetRegulators Offi ce and Department for Business, Energy & Industrial Strategy respectively Works on emerging technologies Advises policy on science, technology, engineering and mathematics Information Commissioner’s Office Office of Communications (Ofcom) National Technology Adviser Works on emerging technologies Media and creative industries British Film Institute Arm’s-lengthArm’s‑length bodies within the Departmentalbodies withinGroup the Wallace Collection S four C (Sianel Pedwar Cymru)Sports Ground Safety Authority Outside the Departmental Group MuseumsDepartmental and galleries Group BBC – only Public Service Broadcasting, BBC Pension Scheme and BBC Commercial Holdings Ltd are consolidated into the British Museum Arts and libraries Department’s accounts UK Anti-Doping Non-ministerial departments Geffrye MuseumsMuseum and galleries Horniman Museum Arts Council England UK Sport Charity Commission for England and Wales ImperialBritish War Museums Museum Outside the Departmental Group National Gallery British Library Civil society The National Archives NationalGeffrye Maritime Museum Museum Non-ministerial departments National Museums Liverpool Heritage Charity Commission for EnglandBig Lotteryand Wales Fund NationalHorniman Portrait Gallery Museum The National Archives Natural History Museum Historic England Other National Lottery Distribution Fund Royal ArmouriesImperial Museum War Museums National Lottery Distribution Fund Science Museum Group Churches Conservation Trust The Department is responsiblePhone-paid for the operation Services of a lottery fund, Authority which is not consolidated into the Department’s accountsThe Department is responsible for Sir JohnNational Soane’s Museum Gallery the operation of a lottery fund, which is not Tate Gallery Heritage Lottery Fund (and NationalPublic Heritage corporations Regulators Victoria Nationaland Albert Museum Maritime Museum Memorial Fund) The Royal Parks (previously an executive agency, now a charitable company outside of the group) consolidated into the Department’s accounts Wallace Collection Channel Four Television CorporationInformation Commissioner’s Office National Museums Liverpool Tourism Historic Royal Palaces Arts and libraries Royal Armouries (International)Office plc (from 22 January of Communications (Ofcom) 2018) Arts CouncilNational England Portrait Gallery British Tourist Authority (operates as Public corporations Department for Digital, Culture, Media & Sport Department for Digital, Culture, British Library Media and creative industries VisitBritain and VisitEngland) | Natural History Museum The Royal Parks (previously an executive British Film Institute Gambling agency, now a charitable company outside Royal Armouries Museum of the group) S4C (Sianel Pedwar Cymru) Gambling Commission Science Museum Group Channel Four Television Corporation BBC – only Public Service Broadcasting, Horserace Betting Levy Board Sir John Soane’s Museum BBC Pension Scheme and BBC Historic Royal Palaces Sport Commercial Holdings Ltd are Tate Gallery consolidated into the Department’s accounts Royal Armouries (International) plc Sport England Victoria and Albert Museum (from 22 January 2018) Departmental Overview 2018

5 OVERVIEW CONTENTS Where the Department spends its money

Where the Department spends its money The Department for Digital, Culture, Media & Sport’s Group net expenditure was £6.8 billion in 2017-18. TheThe majority Department of the Department’s for expenditure Digital, relates Culture, to the BBC (£3.2 Media billion) and Lottery-funded bodies (£1.7 billion). The arm’s-length bodies together account for more than 90% of the Department’s budget, and are funded directly& Sport’s through grant-in-aid. Group net expenditure was Notes The£6.8 billion Department’s net inexpenditure 2017-18. was £6.84 billion in 2017-18 (excluding non-budget expenditure and receipts associated with the sale of radio spectrum). Figures include spending in Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (A M E), voted and non‑voted, for resource and capital spending. The individual accounts for each of the organisations will not reconcile to the figures shown on this slide due to adjustments made in theThe Supply majority Accounting process. of the Department’s Only public service broadcasting, pensions and BBC Commercial Holdings Ltd expenditure fall within the Department’s consolidation boundary (that is, included in the Departmental Group). The total shown here will not reconcileBBC to expenditureexpenditure reported in relatesthe BBC’s own to accounts. the BBC (£3.2 billion) £3.187bn 2 Theand Department Lottery-funded funds the British Library bodies and museums (£1.7 and galleriesbillion). within the departmental group. Local libraries and museums and galleries outside of the boundary are funded via other departments, local government or other sectorsThe ofarm’s-length the UK economy. bodies together account Expenditure for the Department’s arm’s-length bodies (refer to the previous slide for which ALBs are included in each category) is shown net of self-generated income. For example, for Museums and Galleries, the figure is the net expenditurefor more and includes than £30890% million of of theincome Department’s from commercial activities. Income figures shown are therefore the income of the core Department only. Other Lotterybudget, grant bodies and are arefunded fundedfrom the National directly Lottery Distribution through Fund but consolidated into the Department’s accounts. Lottery Source: Department for Digital, Culture, Media & Sport, Annual Report and Accounts 2017-18, Statement of Parliamentary Supply 1.1 and 1.2 £25m £1.663bn grant-in-aid. Income £4.2m

Tourism £61m

Notes 1 The Department’s net expenditure was £6.84 billion in 2017-18 Arts and culture (excluding non-budget expenditure and receipts associated £496m with the sale of radio spectrum). Figures include spending in Administration Income Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME), voted and non-voted, for resource and £67m £78.8m capital spending. The individual accounts for each of the Income organisations will not reconcile to the fi gures shown on this £0.6m slide due to adjustments made in the Supply Accounting Department for Digital, process. Culture, Media & Sport 2 Only public service broadcasting, pensions and BBC £6.838bn1

Commercial Holdings Ltd expenditure fall within the 3 Department’s consolidation boundary (that is, included in the British Library Departmental Group). The total shown here will not reconcile £119m Museums 3 to expenditure reported in the BBC’s own accounts. and galleries £461m 3 The Department funds the British Library and museums and Income galleries within the departmental group. Local libraries and £11.0m museums and galleries outside of the boundary are funded via Heritage other departments, local government or other sectors of the £188m UK economy. Income 4 Expenditure for the Department’s arm’s-length bodies (refer £18.1m to the previous slide for which ALBs are included in each Broadcasting and media –

category) is shown net of self-generated income. For example, excluding the BBC Media & Sport Department for Digital, Culture, for Museums and Galleries, the fi gure is the net expenditure £266m | and includes £308 million of income from commercial Sport Income activities. Income fi gures shown are therefore the income £1.3m of the core Department only. £204m 5 Lottery grant bodies are funded from the National Income Lottery Distribution Fund but consolidated into the £7.5m Office for Civil Society Department’s accounts. £224m Income £1.3m Departmental Overview 2018 Source: Department for Digital, Culture, Media & Sport, Annual Report and Accounts 2017-18, Statement of Parliamentary Supply 1.1 and 1.2 6 OVERVIEW CONTENTS Major programmes and developments

Major programmes and developments TheThe Department Department has three major projects has included three in the majorGovernment projects Major Projects Portfolio included and supported in bythe the Infrastructure Government and Projects Authority.Major These Projects three projects have a combined cost of £3.4 billion, of which two are currently rated amber/greenPortfolio and one andrated amber. supported by the Infrastructure and Projects Authority. These three Infrastructure and Projects Authority delivery confidence assessment of programmes Broadbandprojects Delivery have a combined cost of £3.4 billion, of which two are currently rated Broadband Delivery UK (BDUK), a directorate of the Department, is currently responsible for three programmes, two of which are on the Government Major Projects Portfolio. The Department is continuingthe Department leads to allocateamber/green funding to broadband and projects, one including rated 5G tests amber. and trials. The project is expected to cost £2.4 billion, of which £1.7 billion is funded by the public sector and the remainder from supplier invest- ment. Annual Annual Annual Annual Annual Annual 700 MHz Clearance report 2013 report 2014 report 2015 report 2016 report 2017 report 2018 Ofcom has decided to make spectrum in the 700 MHz band, which is mainly used for digital television, available for broadband use. The programme consists of: implementing a new transmission frequency plan for Digital Terrestrial Television broadcasting; building or modifying broadcasting masts and antennas;Broadband and Delivery administering the payment of grants to deliver the above infrastructure work. Up to £600 million has been made available to the DepartmentBroadband for this purpose. Delivery This programme UK (BDUK), involves infrastructure a directorate development, of therelocation Department, of the television services currently occupying the spectrum, and a communication campaign for current service users.is currently responsible for three programmes, two of which are on Blythe House Blythe House in London is a property owned by the Departmentthe Government and leased to the MajorBritish Museum, Projects the Victoria Portfolio. and Albert MuseumThe Department and the Science Museum is continuing Group, which use the space to store parts of their collections. The lease expires in March 2023 and the to allocateDepartment plans fundingto sell the building. to broadband The three museums projects, need to make including alternative arrangements 5G tests for and storing trials. their collections. The government Amber/redis making Amber Amber/green Amber/green Amber/green Amber/green up to £150 million available to deliver this project. The objectives of the programme are to ensure that BlytheThe House project is put to is its expectedbest use to deliver to maximum cost £2.4 value for billion, money and of to which ensure that £1.7 billion the museums are is able funded to care for their collections efficiently and effectively. by the public sector and the remainder from supplier investment. Source: Infrastructure and projects authority 2017-18 annual report 700 MHz Clearance

Ofcom has decided to make spectrum in the 700 MHz band, which is mainly used for digital television, available for broadband use. The programme consists of: Amber Amber/green • implementing a new transmission frequency plan for Digital Terrestrial Television broadcasting; • building or modifying broadcasting masts and antennas; and • administering the payment of grants to deliver the above infrastructure work. Up to £600 million has been made available to the Department for this purpose. This programme involves infrastructure development, relocation of the television services currently occupying the spectrum, and a communication campaign for current service users.

Blythe House

Blythe House in London is a property owned by the Department and leased to the British Museum, the Victoria and Albert Museum and Media & Sport Department for Digital, Culture, the Science Museum Group, which use the space to store parts of | their collections. The lease expires in March 2023 and the Department Amber/red Amber plans to sell the building. The three museums need to make alternative arrangements for storing their collections. The government is making up to £150 million available to deliver this project. The objectives of the programme are to ensure that Blythe House is put to its best use to deliver maximum value for money and to ensure that the

museums are able to care for their collections efficiently and effectively. Departmental Overview 2018

Source: Infrastructure and projects authority 2017-18 annual report 7 OVERVIEW CONTENTS Exiting the European Union

Exiting the European Union In March 2019, the United Kingdom (UK) is set to leave the European Union (EU). The UK government has instructed departments to make the necessary arrangements for EU Exit. In March 2019, the United Kingdom (UK) is set to leave the Departmental objectives In March 2018, the Chief Secretary to the Treasury announced the allocation of funding for “essential programmes to realise the opportunities from EU Exit”. For the financial year 2018‑19 £26.2 million of funding has been madeEuropean available to the UnionDepartment (EU).for activity The related UK to exiting government the EU. has instructed departments to make the necessary arrangements for In its Single Departmental Plan, the Department outlines its objective to The Department’s EU Exit workstreams “lead the UK’s digital policy in trade negotiations and ensure that the UK In April 2018, the Department for Exiting the EU providedEU Exit. a summary of the workstreams under way to implement EU Exit. The Department has 18 active workstreams relating to policies affected by leaving the EU covering data, telecoms, digital policy, media and creative industries, cultural cooperation, voluntary and charitable sectors, and sectoral government supports DCMS sectors after EU Exit”. The Department aims to In March 2018, the Chief Secretary to the Treasury workforce and mobility requirements. achieve this through maintaining strong relationships with key EU stakeholders, Examples of the Department’s active workstreams include:announced the allocation of funding for “essential the data protection framework for ongoing personal data transfers between the EU and the UK; leading strategic engagement with them in support of its programmes to realise the opportunities from EU Exit”. the export licensing of cultural objects; and negotiation objectives, and ensuring that the UK government the temporary movement of goods and equipment inFor the digital, culture, financial media and sport year sectors. 2018‑19 £26.2 million of funding has The Department reports that it has developed delivery plans for a range of negotiated and contingency outcomes and that it is working with other government departments is prepared for EU Exit negotiations in digital, culture, media where there are issues with joint policy responsibility.been made available to the Department for activity related to exiting the EU. and sport sectors. Departmental objectives In its Single Departmental Plan, the Department outlines its objective to “lead the UK’s digital policy in trade negotiations and ensure that the UK government supports DCMS sectors after EU Exit”. The Department aims to achieve this through maintaining strong relationships with key EU stakeholders, leading strategic engagement with them in sup- port of its negotiation objectives, and ensuring that the UK government is prepared for EU Exit negotiations in digital, culture, media and sport sectors.

The Department’s EU Exit workstreams In April 2018, the Department for Exiting the EU provided a summary of the workstreams under way to implement EU Exit. The Department has 18 active workstreams relating to policies affected by leaving the EU covering data, telecoms, digital policy, media and creative industries, cultural cooperation, voluntary and charitable sectors, and sectoral workforce and mobility requirements.

Examples of the Department’s active workstreams include:

• the data protection framework for ongoing personal data transfers between the EU and the UK;

• the export licensing of cultural objects; and • the temporary movement of goods and equipment in digital, culture, media and sport sectors. Department for Digital, Culture, Media & Sport Department for Digital, Culture, | The Department reports that it has developed delivery plans for a range of negotiated and contingency outcomes and that it is working with other government departments where there are issues with joint policy responsibility. Departmental Overview 2018

8 OVERVIEW CONTENTS Managing public money

OpinionManaging public moneyon the financial statements, regularity and other matters Opinion on the financial statements, regularity and other matters Total voted underspend The Comptroller and Auditor General (C&AG) certified the Department’s 2017‑18 accounts with a clean audit opinion on The Comptroller and Auditor General (C&AG) certified the Department’s 16 July 2018, eight days before Parliament’s summer recess. Voted expenditure underspend (£bn ) 20172017-18‑ 18was theaccounts first time BBC withCommercial a cleanHoldings Limitedaudit was opinion consolidated intoon the 16 July Departmental 2018, Group (as eighta days result of reclassification by the Office for National Statistics). Consolidation required the BBC commercial subsidiaries to 1.8 before Parliament’sbe recorded at fair value (that is, based summer on how the market recess. would value the commercial subsidiaries) for the first time. 1.6 This value was £1.5 billion at 31 March 2018. 1.4 2017-18 was the first time BBC Commercial Holdings Limited was consolidated Voted expenditure 1.2 intoVoted expenditure the Departmental (funds for which Parliamentary Group authority (as ais required)result outturn of reclassification increased from £4.3 billion inby 2013-14 the Office for 1.0 to £5.2 billion in 2017-18. During that time the Department has remained within its budgets. TheNational increase in Statistics).net expenditure is mainlyConsolidation due to the Department’s required new responsibilities the BBC for civil commercialsociety and data. subsidiaries to be 0.8 recordedThe Department’s at underspend fair value against its(that voted budgetis, based was £0.8 onbillion how in 2017 ‑the18, which market is £0.3 billion would more than value in the commercial 0.6 2016-17. Of the £0.8 billion underspend in 2017-18 £0.2 billion relates to budgetary cover being sought for potential 0.4 subsidiaries)litigation costs that was for not required the first and an additionaltime. £0.2This billion value relates towas a prior £1.5 billionperiod adjustment (anat error31 in March 2018. the prior year financial statements corrected this year), which has no impact on budgets but was included in the 0.2 Department’s budgetary submission to Parliament. 0 2013-14 2014-15 2015-16 2016-17 2017-18 Future spending plans Following changes to the Department’s responsibilities for civil society and data since the Spending Review, HM Treasury hasVoted granted theexpenditure Department additional funding of £0.5 billion and £0.7 billion for 2018-19 and 2019-20 respectively. Source: National Audit Offi ce analysis of the Department for Digital, Culture, Media & Sport Annual Reports and Accounts 2013–18 VotedThis page shows expenditure 2 diagrams (funds for which Parliamentary authority is required) outturn

Theincreased first diagram showsfrom total £4.3 voted underspend.billion in 2013-14 to £5.2 billion in 2017-18. During that time the Department has remained within its budgets. Departmental Expenditure Limit (DEL) expenditure 2015-16 to 2017-18 and future The second diagram shows Departmental Expenditure Limit (DEL) expenditure 2015-16 to 2017-18 and future spending plans 2019-20 (£ billion) spending plans 2019-20 (£bn) The increase in net expenditure is mainly due to the Department’s new responsibilities for civil society and data. DEL expenditure (£bn) 2.5 The Department’s underspend against its voted budget was £0.8 billion in 2017‑18, which is £0.3 billion more than in 2016-17. Of the £0.8 billion underspend in 2.0 2017-18 £0.2 billion relates to budgetary cover being sought for potential litigation 1.5 costs that was not required and an additional £0.2 billion relates to a prior period adjustment (an error in the prior year financial statements corrected this year), 1.0 which has no impact on budgets but was included in the Department’s budgetary 0.5 submission to Parliament. 0 2015-16 2016-17 2017-18 2018-19 2019-20 Outturn Outturn Outturn Plans Plans

Capital (£bn) 0.3 0.3 0.4 0.6 0.6 Media & Sport Department for Digital, Culture, Future spending plans Resource (£bn) 1.4 1.6 1.6 1.7 1.7 | Following changes to the Department’s responsibilities for civil society and data Source: Department for Digital, Culture, Media & Sport, Annual Report and Accounts 2017-18, Annex A – core tables since the Spending Review, HM Treasury has granted the Department additional funding of £0.5 billion and £0.7 billion for 2018-19 and 2019-20 respectively. Departmental Overview 2018

9 PART ONE CONTENTS Funding for good causes – the National Lottery 1/2

The Department launched the National Lottery in Our December 2017 report Investigation: National Lottery • Half of the six largest Lottery distributors increased November 1994. The National Lottery is currently run funding for good causes found that: their grant commitments (where the awarding body by Camelot UK Lotteries Limited, and raises money for has formally decided to make the award and notified good causes in the arts, sports, heritage, health, education, • National Lottery income for good causes rose by the recipient) in 2016-17 at the same time as Lottery environment and charitable sectors. A proportion of 42% from £1.36 billion in 2004-05 to £1.93 billion in income fell. proceeds from the Lottery is paid into the National 2015‑16. However, in the 12 months from 1 April 2016, The National Lottery Distribution Fund (a fund to Lottery Distribution Fund. This money is drawn on by income for good causes fell by 15% to £1.63 billion. In • receive and hold monies generated by the National 12 non‑departmental public bodies (the distributors) that 2017-18 National Lottery income increased slightly to Lottery for good causes) balance at 31 March 2004 allocate funding to good cause projects in accordance with £1.64 billion. was sufficient to cover 96% of total liabilities raised by policy directions set by the Department or the devolved • In 2016-17, sales of draw-based games decreased by distributors. At 31 March 2018 this figure had fallen to administrations. 13% and sales of scratchcards and instant-win games 45% – fund balances were £1.4 billion compared to fell 2%. Returns for good causes are higher from sales of The National Lottery is regulated by the Gambling distributors’ grant liabilities of £3.1 billion (that is, lottery draw-based games. Commission. The current (third) licence to operate the distributing bodies have committed more than double National Lottery was awarded in 2009 and ends in 2023. • Increases in Camelot’s profits have been the amount of money that is currently available). proportionately greater than increases in both Lottery We undertook an investigation in 2017 into concerns sales and returns for good causes. From 2009‑10 to including reductions in income for good causes and the 2016-17 returns for good causes increased by 2% impact of reduced funding on distributors’ ability to meet and Camelot’s profit attributable to its shareholders future funding commitments. increased by 122% (£39 million) to £71 million.

National Lottery account fi gures between 2009-10 and 2017-18 National Lottery distributors’ grant liabilities and National Lottery Distribution Fund balance from 2004-05 to 2016-17 Between 2009‑10 and 2017‑18 the increases in Camelot’s shareholder profits have been proportionately greater than the increases in both Lottery sales and returns for good causes Recent grant liabilities are high compared with the Fund balance This page shows 2 diagrams. the first diagram shows National Lottery account figures between 2009-10 and Gross ticket sales and Lottery income for good causes (£m) Shareholder profit (£m) £ million 2017-18 and the second diagram shows National Lottery distributors’ grant liabilities and National Lottery 8,000 80 3,500 Distribution Fund balance from 2004-05 to 2016-17. 7,000 70 3,000 6,000 60 5,000 50 2,500

4,000 40 2,000 3,000 30 1,500 2,000 20 Media & Sport Department for Digital, Culture, | 1,000 10 1,000 0 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 500 Year 0 Lottery income for good causes 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Gross ticket sales National Lottery Distribution Fund (£m)

Shareholder profit Grant liabilities (£m) Departmental overview 2018

Source: National Audit Offi ce analysis of Camelot UK Lotteries Limited annual report and accounts Source: National Audit Offi ce analysis of National Lottery Distribution Fund annual report and accounts 10 PART ONE CONTENTS Regulation of charities – the Charity Commission 2/2

The Charity Commission (the Commission) is the registrar and regulator of charities in England and Wales. The Commission is responsible for Commission budget and charity sector income, 2006 to 2017 maintaining an accurate and up-to-date register of charities, including Commission budget (£m) Sector income (£bn) determining whether organisations are charitable or not. The Commission 35 80 regulates both registered charities and charities which are not required to £8 million for Transform programme over three financial years to March 2017 be registered. 70 30 In previous reports we identified that the Commission was not an effective regulator. The NAO raised concerns about the Commission’s strategy, the way it measured its performance, its leadership and not taking a proactive 60 25 approach to regulation.

50 Our November 2017 progress report on the Commission concluded that, overall, the Commission had almost completed its Transform programme 20 and it is vital that it keeps up the momentum of change and embeds a 40 culture of continuous improvement. We found the following: 15 • Transformation – The scope of the Commission’s transformation 30 has widened to become more ambitious and proactive. The budget for the programme has increased from £8 million (over three financial 10 20 years to March 2017) to a forecast £12 million (over four financial years to January 2018). 5 10 • Regulation – The Commission is embracing a risk-based approach to regulation but legacy systems and lack of usable data are barriers to This page shows 1 diagram. The diagram shows Commission budget and charity sector income, 2006 to 2017 improvement. The Commission is making use of its new powers but it 0 0 needs to manage the risk that its powers will not be sufficient in the future. 2006 20072008 2009 20102011 2012 2013 2014 2015 2016 2017 Commission 32.4 30.2 32.5 29.9 28.6 27.5 24.9 22.9 19.9 18.9 21.4 21.1 Many stakeholders do, and may continue to, have differing expectations of budget (£m) the level of detail/oversight that the Commission exercises. Sector 38 41 45 48 52 54 56 58 61 66 70 73 income (£bn) • Registration – The Commission has taken action to speed up registrations of charities. The average time to register cases has recently Note 1 Commission budget fi gures are net in real-terms 2006 prices. Media & Sport Department for Digital, Culture, fallen from a peak in 2016-17. For high‑risk cases the average time to | register has fallen from 117 days in 2016-17 to 89 days in Q1 2017-18. Source: National Audit Offi ce analysis of Parliamentary Supply Estimates and Spending Review Settlement

• Funding – The demands on the Commission have increased over recent years because of policy and legislative changes. Against this background, the Commission’s funding has decreased from £32.4 million in 2005-06 to £24.5 million by 2017-18. Departmental overview 2018

11 PART TWO CONTENTS Arts and culture 1/2

The Department aims to support wider participation in culture and the arts through its work in the arts and culture sector, working with the arts and culture sector to promote the UK’s museums, galleries and heritage sites, encourage participation for all and boost funding, innovation and visitor numbers.

The Department is responsible for directly sponsoring 22 arm’s-length bodies (ALBs) relating to arts and culture, such as the British Museum, British Library and National Portrait Gallery. These relate to Heritage Projects (five ALBs), Museums and Galleries (15 ALBs) and Arts and Libraries (two ALBs).

Income, expenditure and participation Recent developments

• The Department provided £988 million of grant-in-aid funding to arts and culture, • In November 2017 the Department published the Mendoza review of museums museums and galleries, heritage bodies and libraries in 2017-18. in England and the Department’s strategic review of sponsored museums. Findings and recommendations from these reviews can be seen on the • The net expenditure by the Department via ALBs relating to arts, culture, heritage, next page. museums and galleries, and libraries was £2.1 billion in 2017-18. • From 1 April 2017 some museums were eligible for Museums and Galleries Tax • Total income generated by museums and galleries excluding grant-in‑aid was Relief. This can provide a subsidy towards the cost of producing an exhibition. £308 million in 2017-18. • Major capital projects completed in 2017-18 include the V&A’s Exhibition Road • 79% of adults engaged with the arts and 50% visited a museum or gallery entrance, reopening of Tate St. Ives, reopening of Hintze Hall with Hope the in 2017-18. There has been an increase in participation in arts and culture since whale, new galleries at Wallace Collection, and the Sir Joseph Hotung galleries 2005-06 (the earliest period for which data are available) where engagement at the British Museum. with the arts was 76% and 42% of adults had visited a museum or gallery. Department for Digital, Culture, Media & Sport Department for Digital, Culture, | Departmental overview 2018

12 PART TWO CONTENTS 2017-18 development: Museum reviews 2/2

The geographical spread of museums covered by the Department’s strategic review The Mendoza Review In November 2017, the Department published The Mendoza Review: an independent review of museums in England. The review was undertaken in response to the Culture white paper 2016. It reflected on the future

of museums, their role, their funding and their key priorities, and made Shildon recommendations covering:

• joined-up approach from government and its arm’s-length bodies; • a clearer museums role for the Department; Stockton-on-Tees • national responsibilities for national museums; York Leeds • a stronger development function for Arts Council England with museums; Bradford Boston Spa

• a more effective use of National Lottery funding for museums; and Liverpool Wakefield • the closer involvement of Historic England. Manchester Strategic Review of Department-sponsored museums

At the same time as the Mendoza Review, the Department published its own This page contains 1 diagram. The diagram is a map and it shows The geographical spread of Strategic review of DCMS-sponsored museums. The review assessed these museums covered by the Department’s strategic review

museums’ functions, forms, effectiveness, efficiency and accountability. Duxford Recommendations from this review included: Tring • working with the sponsored museums to identify and deliver innovation London and efficiencies around collections management, business models, Wroughton back-office functions and collaboration, and funding options; and

the Department will review its relationship with each of its sponsored • Media & Sport Department for Digital, Culture, bodies and the British Library, including the management agreements St Ives | and performance indicators.

Fort Nelson

Note

1 The larger the museum icon, the more museums in that area. Departmental overview 2018

Source: Strategic review of DCMS-sponsored museums 13 PART THREE CONTENTS Broadband access

Superfast broadband broadband has been rolledhas outbeen to much of the country on commercialThe UK’s terms 5G by providers Strategy such as BT and Virgin Media where it is economically viable for them to do so. The governmentLocal defines Full Fibre Networks Programme (LFFN) rolledsuperfast out as speeds to much greater of than the 24 countryMbps, whereas Ofcom (the UK regulator) defines it as speeds greater than 30 Mbps. Broadband Delivery UK (BDUK) is responsible for implementing the government’s policy on superfast broadband roll‑out. The Department reported that a targetThe of 95% Government’s of UK premises had 5G been Testbed met in December 2017 and Trials and Programme a basic broadband was access set forup all other areas. It plans toThis extend programme coverage is designed to stimulate commercial investment in full fibre networks in both rural on commercial terms by providers beyond this. in 2017 as part of more than £1 billion of funding to boost the UK’s and urban locations across the whole of the UK. The first wave of this programme was launched Thesuch UK’s as 5G BT Strategy and Virgin Media where digital infrastructure. The programme will explore the benefits and in late 2017. The programme’s delivery objectives are to: itThe is Government’s economically 5G Testbed viable and Trialsfor them Programme was set up in 2017 as part of more than £1 billion of funding to boost the UK’s digital infrastructure. The programme will explore the benefits and chal- challenges of deploying 5G technologies in line with the following tolenges do of so. deploying The 5Ggovernment technologies in defines line with the following key objectives: • maximise the availability of gigabit‑capable broadband services; Stimulate market development and deployment of 5G technology and infrastructurekey objectives: in the UK. superfast as speeds greater than Create new opportunities for businesses. • improve commercial investment conditions in local areas (for example, Ensure24 Mbps, the UK whereassecures an advantage Ofcom in (the the investment and development• of skillsStimulate as 5G products market and services development develop. and deployment of 5G improve the business case for the market to provide more gigabit‑capable broadband). UKIn March regulator) 2018, six winnersdefines of the it firstas speedsphase of the 5G Testbeds and Trials competitiontechnology were announced. and infrastructure in the UK. greaterUrban Connected than Communities 30 Mbps. Broadband The programme objectives are to be achieved via the following two schemes: In September 2018, the West Midlands were selected as the location for• the UrbanCreate Connected new Communitiesopportunities project forto design businesses. wireless infrastructure in a major city that delivers high quality connectivity and Delivery UK (BDUK) is responsible allow new 5G applications to be trialled in a number of sectors. Up to £50 millionEnsure is available the for UK the securesproject, which an includes advantage £25 million in fromthe theinvestment Department. and Challenge Fund for implementing the government’s • Trans Pennine Railway 5G trial development of skills as 5G products and services develop. policyThe Trans on Pennine superfast Initiative, partbroadband of Northern Powerhouse plans, aim to test ways of providing high-quality connectivity to trains. Launched in November 2017 as a £190 million capital grant programme to fund locally led public rollLocal‑ out.Full Fibre The Networks Department Programme reported (LFFN) In March 2018, six winners of the first phase of the 5G Testbeds connectivity projects. The first £95 million funding was allocated in March 2018 and the next This programme is designed to stimulate commercial investment in full fibre networks in both rural and urban locations across the whole of the UK. The first wave of this programme was launched in late 2017. and Trials competition were announced. £95 million is now open to local bodies for expressions of interest. Thethat programme’s a target deliveryof 95% objectives of UK are premises to: had been met in December 2017 maximise the availability of gigabit‑capable broadband services; Urban Connected Communities andimprove a commercialbasic broadband investment conditions access in localfor areas (for example, improve the business case for the market to provide more gigabit‑capable broadband). Gigabit Broadband Voucher Scheme The programme objectives are to be achieved via the following two schemes:In September 2018, the West Midlands were selected as the all other areas. It plans to extend Launched in March 2018, a £67 million voucher scheme available for use by small businesses and Challenge Fund location for the Urban Connected Communities project to design Launchedcoverage in November beyond 2017 this. as a £190 million capital grant programme to fund locally led public connectivity projects. The first £95 million funding was allocated in March 2018 and the localnext £95 million communities is to contribute to the installation of faster connections. Small to medium-sized wireless infrastructure in a major city that delivers high quality now open to local bodies for expressions of interest. businesses can claim a voucher of up to £3,000 and residents £500 as part of a group project. Gigabit Broadband Voucher Scheme connectivity and allow new 5G applications to be trialled in a Launched in March 2018, a £67 million voucher scheme available for numberuse by small of businesses sectors. Up and local to communities £50 million to contribute is available to the installation for the of project, faster connections. Small to medium-sized businesses can claim a voucher of up to £3,000 and residents £500 as part of a groupwhich project. includes £25 million from the Department.

Trans Pennine Railway 5G trial The Trans Pennine Initiative, part of Northern Powerhouse plans, aim to test ways of providing high-quality connectivity to trains. Department for Digital, Culture, Media & Sport Department for Digital, Culture, | Departmental overview 2018

14 PART FOUR CONTENTS Sports 1/2

The Department is responsible for maintaining and improving Britain’s elite sporting performance, getting more people participating in sporting activities, and creating and building a lasting legacy from the London 2012 Olympic and Paralympic Games.

Activity across England The percentage of adults who are ‘active’ by local authority area as per the ‘Sport England Active Lives Survey’ This page shows 1 diagram. It is a map and it shows Activity across England via The percentage of adults who are ‘active’ by local authority area as per theNovember ‘Sport England Active2016‑17 Lives Survey’ report, November based 2016-17 onreport, over based 196,000on over 196,000 respondents respondents

Active (150+ minutes a week) 68%–77% (most active) 63%–67% 59%–62% 55%–58% 49%–54% (least active) Department for Digital, Culture, Media & Sport Department for Digital, Culture, |

Source: Sport England Active Lives Survey November 2016-17 Departmental overview 2018

15 PART FOUR CONTENTS Sports 2/2

Expenditure and participation Future sporting events • Expenditure by sport bodies in 2017-18 was £448 million. • Sport England is the largest sports body in the Departmental Yorkshire will host the 2019 UCI Road World Championships. The Department is group, receiving £81 million of grant-in-aid funding and underwriting the event, which is also receiving £9 million from the Department and £203 million of National Lottery share of proceeds. £3 million from UK Sport. The Department will invest £15 million towards developing cycling facilities across the UK. According to the Sport England 2016-17 Active Lives Survey:

• 61.8% of adults in England (or 27.7 million people) are The ICC Cricket World Cup 2019 will be hosted by England and Wales. physically active, meeting the 150-minute-a-week threshold. • By profession, the highest proportion is 71% of adults in managerial, administrative and professional occupations who are active. The lowest is 49% of those in England secured the rights to host the Rugby League World Cup in 2021. long‑term unemployment or never worked who are active. The Department is investing up to £15 million into hosting the event and £10 million to improve infrastructure and increase participation. • 64% of men are active compared with 60% of women. • The percentage of adults classed as active between the ages of 16–24 and 25–34 has decreased by 1.5% and 1.6% respectively whereas there has been a 1.2% increase for adults between 55 and 64 and a 1.4% increase for adults between 65 and 74. Birmingham will host the Commonwealth Games in 2022. Department for Digital, Culture, Media & Sport Department for Digital, Culture, | Departmental overview 2018

16 PART FIVEFOUR CONTENTS What to look out for

1 01Civil Society Strategy Civil In January 2018 the Department announced that it would issue directions for the distribution of up to £330 million from dormant bank and building In January 2018 the Department announcedSociety Strategy that it would issue directions for thesociety distribution accountsof up to £330 million to help from dormant the homeless, bank and building disadvantaged society accounts to help young the homeless, people, disadvantaged local young charities people, local and charities other and other good good causescauses in the in UK the over theUK next over four years.the Thenext Big four years. The Big Lottery Fund (BLF), which is audited by the NAO, will distribute the dormant asset funding in the devolved administrations. In England, the money will be distributed through BLF to Big Society Capital, and to new organisations for youth and financial inclusion, who will be responsible for the detailed distribution of the funding. In August 2018, the Department published the government’sLottery Civil SocietyFund Strategy. (BLF), The which Department is identifiesaudited in the by strategy the NAO,how it will willissue distributedirections for the the distribution dormant of some asset of the funding funding from dormant in the accounts devolved and outlines administrations. what it identifies are five In foundationsEngland, of social the money will value which the strategy focuses on: be distributed through BLF to Big Society Capital, and to new organisations for youth and fi nancial inclusion, who will be responsible for the detailed People – enabling a lifetime of contribution. Places – empowerment and investment for local communities. distribution of the funding. In August 2018, the Department published the government’s Civil Society Strategy. The Department identifi es in the strategy The social sector – supporting charities and social enterprises. how it will issue directions for the distribution of some of the funding from dormant accounts and outlines what it identifi es are fi ve foundations of social The private sector – promoting business, finance, and technology for good. The public sector – ensuring collaborative commissioning. value which the strategy focuses on: 2 Commonwealth Games 2022 • People – enabling a lifetime of contribution. In December 2017, the Commonwealth Games Federation confirmed Birmingham as the host city for the 2022 Commonwealth Games. The UK government will fund 75% of the public sector cost of delivering the Games and local government will fund the remaining 25% of the public sector cost. The Department has guaranteed to financially underwrite the organisation and staging• of the Places games. – empowerment and investment for local communities. The Department established the Birmingham Organising Committee for the 2022 Commonwealth Games Ltd (the ‘OC’) in December 2017 to organise and deliver the Games. The OC was established as a public limited company (limited by guarantee) and a non-departmental public body. 3 • The social sector – supporting charities and social enterprises. Fourth National Lottery Licence The licence to manage the National Lottery is currently in its third period and is held• by CamelotThe privateUK Lotteries Limited.sector The current – promoting licence began business, in 2009 and was fi duenance, to run for and10 years, technology but the Gambling for Commission good. extended it to 2023. The government confirmed that it expects that the Gambling Commission will take account of experiences of the third licence when designing the next licence for the National Lottery beyond 2023. 4 • The public sector – ensuring collaborative commissioning. National Citizen Service The National Citizen Service Trust is currently a community interest company (CIC), which receives the vast majority of its funding from the Department (£177 million in 2017-18). The National Citizen Service Act achieved Royal Assent in April 2017, paving the way for a future transition from a CIC to a Royal Charter body, to be sponsoredCommonwealth by the Department. In December 2017, the Commonwealth Games Federation confi rmed Birmingham as the host city for the 2022 Commonwealth Games. The UK 025 Digital Games 2022 government will fund 75% of the public sector cost of delivering the Games and local government will fund the remaining 25% of the public sector cost. In May 2018 the Data Protection Act 1998 was replaced with the Data ProtectionThe Act 2018, Department which applies the has General guaranteed Data Protection Regulationto fi nancially (GDPR). In Aprilunderwrite 2017 the Digital the Economy organisation Bill received Royal and Assent, staging which includes of the a range games. of measures to support the UK’s digital economy. In early 2018 the Department announced the Office for Artificial Intelligence, a new joint unit with the Department for Business, Energy & Industrial Strategy, to take forward a broad programme of work on artificial intelligence, including delivery of commitments in the AI Sector Deal. In June 2018 the Department announced the creation of the new Centre of Data Ethics and Innovation; production of a National Data Strategy; and launched a new Data Ethics Framework. The Department established the Birmingham Organising Committee for the 2022 Commonwealth Games Ltd (the ‘OC’) in December 2017 to organise and deliver the Games. The OC was established as a public limited company (limited by guarantee) and a non-departmental public body.

03 Fourth National The licence to manage the National Lottery is currently in its third period and is held by Camelot UK Lotteries Limited. The current licence began in Lottery Licence 2009 and was due to run for 10 years, but the Gambling Commission extended it to 2023. The government confi rmed that it expects that the Gambling Commission will take account of experiences of the third licence when designing the next licence for the National Lottery beyond 2023.

04 National The National Citizen Service Trust is currently a community interest company (CIC), which receives the vast majority of its funding from the Department Citizen Service (£177 million in 2017-18). The National Citizen Service Act achieved Royal Assent in April 2017, paving the way for a future transition from a CIC to a Royal Charter body, to be sponsored by the Department.

Digital In May 2018 the Data Protection Act 1998 was replaced with the Data Protection Act 2018, which applies the General Data Protection Regulation Media & Sport Department for Digital, Culture,

05 | (GDPR). In April 2017 the Digital Economy Bill received Royal Assent, which includes a range of measures to support the UK’s digital economy. In early 2018 the Department announced the Offi ce for Artifi cial Intelligence, a new joint unit with the Department for Business, Energy & Industrial Strategy, to take forward a broad programme of work on artifi cial intelligence, including delivery of commitments in the AI Sector Deal. In June 2018 the Department announced the creation of the new Centre of Data Ethics and Innovation; production of a National Data Strategy; and launched a new Data Ethics Framework. Departmental overview 2018

17