UK Statistics Authority1 Estimates Memorandum 1. Introduction This memorandum provides details of the resources sought in the UK Statistics Authority’s Main Estimate for 2016-17. The Main Estimate seeks the necessary resources and cash to support the functions of the Authority. The purpose of this memorandum is to provide the Select Committee with an explanation of how the resources provided in the Main Estimate are to be applied in achieving departmental objectives. The memorandum includes information on comparisons with resources provided in earlier years and also refers to future financial plans. All figures are presented in £000’s and a glossary of key terms used in the memorandum is provided at Annex A. 2. Summary of Resources Sought in the Main Estimate Table 1 outlines the provisions made in the Main Estimate for 2016/17. Table 1: Summary of Main Estimate 2016/17 £000 Departmental Expenditure Limit Resource Departmental Expenditure Limit (RDEL) 222,672 Of which administration ­ Capital Departmental Expenditure Limit (CDEL) 11,410 Annually Managed Expenditure (AME) Resource -5,708 Capital ­ Total Net Budget Resource 216,964 Capital 11,410 Non Budget Expenditure ­ Net Cash Requirement 205,996 1 The UK Statistics Authority is the operating name of the legal entity “the Statistics Board”, created by the Statistics and Registration Service Act 2007. It should be noted that all budgetary limits are voted and form part of a programme budget. Tables 2 and 3, and the associated narrative, provide an explanation of the significant changes for the 2016/17 allocation when compared with: • the spending review allocation for the year from the 2015 Spending Review; and • the 2015/16 final estimate. Table 2: 2016/17 Main Estimate Compared to 2015 Spending Review Allocation Resource Capital (£000) (£000) Spending Round 2015 DEL 175,200 10,600 2016/17 Main Estimate DEL 222,672 11,410 Variance DEL 47,472 810 The £47,472 increase in RDEL between the Spending Review and Main Estimate is as a result of the following adjustments: Budget Cover Transfers: • Department for International Development (DFiD) transfer of £100 to the Authority, agreed in the 2015 Spending Review and requested in the 2016/17 Main Estimate, for Oversees Development Assistance. • Ministry of Justice (MoJ) transfer of £403 to the Authority, requested in the 2016/17 Main Estimate for Crime Statistics. • Cabinet Office (CO) transfer of £51 from the Authority, requested in the 2016/17 Main Estimate for the Senior Civil Service Survey. Other Changes: • Confirmation of final funding requirement for 2016/17 for the Census Transformation Programme, resulting in £35,220 being confirmed in the Main Estimate 2016/17. • Confirmation of funding to implement recommendations from the government review of economic statistics, resulting in £3,600 being confirmed in the Main Estimate 2016/17. • An additional £8,200 of depreciation requested and confirmed in the Main Estimate 2016/17. The £810 increase in CDEL between the Spending Review and Main Estimate is as a result of the following adjustments: Other Changes: • Confirmation of final funding requirement for 2016/17 for the Census Transformation Programme, resulting in £810 being confirmed in the Main Estimate 2016/17. Table 3: 2016/176 Main Estimate Compared to 2015/16 Final Estimate Resource Capital Cash (£000) (£000) (£000) 2015/16 Final Estimate Net Budget 187,981 8,851 - NCR - - 172,794 DEL 182,094 8,851 - AME 5,887 - - 2016/17 Main Budget Net Budget 216,964 11,410 - NCR - - 205,996 DEL 222,672 11,410 - AME -5,708 - - Variance Net Budget -28,983 -2,559 ­ NCR - - -33,202 DEL -40,578 -2,559 ­ AME 11,595 - ­ The increase in the net resource budget is due to new Spending Review settlement in addition to the changes outlined in relation to table 2. Changes for both net resource and net capital are largely driving by the inclusion of Census funding. 3. Main Objectives and Priorities of the Statistics Authority The UK Statistics Authority is an independent body from government, which reports directly to the UK Parliament, the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly. The Statistics and Registration Service Act 2007 established the Authority with the statutory objective of “promoting and safeguarding the production and publication of official statistics that serve the public good”. The public good includes: • informing the public about social and economic matters; • assisting in the development and evaluation of public policy; and • regulating quality and publicly challenging the misuse of statistics. There are three principal elements of the UK official statistics system for which the Authority has oversight. The Authority provides professional oversight of the Government Statistical Service (GSS), and has exclusive responsibility for the Office for National Statistics (ONS) and independent regulation. The Government Statistical Service The GSS is a cross-government network, spread across a whole range of public bodies, including components of the devolved administrations and UK government departments. Led by the National Statistician, it includes statisticians, researchers, economists, analysts, operational delivery staff, IT specialists and other supporting roles. The GSS community works together to provide the statistical evidence base required by decision-makers, publishing around 2,000 sets of statistics each year, and providing professional advice and analysis to decision-makers. ONS has an important role at the heart of the GSS, providing guidance, support, standards and training. The Office for National Statistics ONS is the executive office of the UK Statistics Authority. It is the UK’s National Statistical Institute and largest producer of official statistics. ONS produces statistics on a range of key economic, social and demographic topics. Key services include measuring changes in the value of the UK economy (GDP), estimating the size, geographic distribution and characteristics of the population (including statistics from the Census), and providing indicators of price inflation (CPI), employment, earnings, crime and migration. Independent regulation The Authority’s independent regulatory function, based in offices in England, Scotland and Wales, ensures that statistics are produced and disseminated in the public interest. It acts as guardian of the integrity of the statistical system, watchdog against abuse, and advocate of the highest standards. It does so by assessing official statistics for compliance with the Code of Practice for Official Statistics, monitoring and reporting publicly on statistical issues, and challenging the misuse of statistics. The legislation requires strict separation of the functions of production and regulation. In particular, those involved in the production of statistics are not involved in the assessment of statistics against the Code. The Director General for Regulation, who reports directly to the Chair of the Authority, draws attention to claims that are not supported by the statistics and recommends whether the National Statistics quality mark can be awarded to statistics which can be relied upon and meet the highest standards. The business objectives are set out in the Authority’s business plan and performance against these objectives is assessed by the Authority Board and National Statistics Executive Group. To achieve our mission, over the next five years we will focus on five perspectives: helpful; professional; efficient; capable; and innovative. Together they describe the way we will work with others to provide a quality service, our ambition to be innovative, to deliver in a cost effective way and to ensure we optimise the capability of the statistical community. Building stronger relationships will enable us to be more helpful and intuitive in responding to the needs of our stakeholders. To explain how we intend to deliver within each perspective, we have identified eight strategic objectives: 1. inform decision making; 2. support democratic debate; 3. improve communication; 4. challenge misuse of statistics; 5. deliver high quality statistics, analysis and advice; 6. develop and implement innovative methods; 7. demonstrate value for money; and 8. build capability. Further information can be found in the Authority’s strategy and business plan. 4. Departmental Expenditure Limit (DEL) The table below details the outturns for 2012/13 to 2014/15 and the planned data for 2015/16 and the duration of Spending Review 2015. Table 4: DEL Outturns and Plans from 2012/13 to 2019/20 Outturn Plans £000 £000 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Resource DEL 181,109 173,588 170,161 182,094 222,672 184,600 181,100 173,200 Capital DEL 19,414 15,290 11,861 8,851 11,410 14,000 13,400 7,000 Less Depreciation 15,243 11,779 14,980 17,500 24,700 16,500 16,500 16,500 Total DEL 185,280 177,099 167,042 173,445 209,382 182,100 178,000 163,700 The 2015/16 DEL plans are consistent with SR10 settlement and beyond this plans are as per this Main Estimate and the 2015 Spending Review. Note that funding has yet to be approved for the Census Transformation Programme beyond 2016/17. 5. Annually Managed Expenditure (AME) The table below details the outturns for 2012/13 to 2014/15 and the planned data for 2015/16 and the duration of Spending Review 2015. Table 5: AME Outturns and Plans from 2012/13 to 2019/20 Outturn Plans £000 £000 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Resource AME -2,768 -2,865 -236 5,887 -5,708 -462 -304 -241 6. Additional Information To support the independence of the UK Statistics Authority, the Department is not subject to administration cost controls and therefore all resource costs are classified as programme. 7. Provisions The Estimate provides for the utilisation of provisions which impact on AME and DEL. It represents an estimate of the costs expected to be incurred in voluntary early severance (VES) schemes, asset impairments and on-going legal cases.