Department for Culture, Media and Sport Main Estimate

Transcription

1 Estimate Memorandum Department for Culture, Media and Sport Main Estimate Overall Summary The Department for Culture, Media and Sport (DCMS) is here to help make Britain the world s most creative and exciting place to live, visit and do business. We protect and promote our cultural and artistic heritage and help businesses and communities to grow by investing in innovation and highlighting Britain as a fantastic place to visit. Alongside this, we protect our deeply held beliefs in freedom and equality. We help to give the UK a unique advantage in the global race for economic success. The Main Estimate for seeks the necessary resources and cash to ensure the communications, creative, media, cultural, tourism, sport and leisure industries have the framework to grow and make a real impact on people s lives. 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 women, sexual orientation and transgender equality matters through the Government Equalities Office, which is part of DCMS. Table 1. Compares Provision and Outturn for (the last year of Spending Review 2007) with the Provision for and and plans data for and Table 2. Illustrates how the figures for reconcile to those set out in Spending Review Table 3. Compares Grant in Aid funding from through to Table 1 Comparison between and the SR 2010 allocation years million Provision Outturn Outturn Outturn Provision Plans Resource DEL of which Administration* Ring fenced Depreciation Non-voted negative Resource DEL 2 Capital DEL Resource AME voted Capital AME - voted Resource AME - non-voted** Capital AME - non-voted**

2 * In Administration for the Central Dept. only was recorded on the Estimate. As part of the Spending review the administration budget has been extended to cover a number of our Arm s Length bodies. **Non-Voted AME for Outturn onward relates solely to lottery funding 1 A change in the accounting treatment from, AME impairment to DEL Depreciation, of the construction of the Venues and Infrastructure associated with the London 2012 programme after the Games. This accounting adjustment arose because in 2010, as part of the Spending Review, it was assumed that a provision of some 2.3bn might be needed to recognise the potential write-down in the value of the assets to reflect their value after the Games. At the time it was agreed that this would be classified as an Impairment in accounting terms. A provision was therefore made in the Department s Annually Managed Expenditure budget in accordance with the budgetary rules. Following discussions with the NAO to reflect current thinking on the application of accounting rules, the potential write-down was re-classified as Depreciation, and so the provision for this was made in the DEL budget instead. This adjustment between budgets makes no difference to the overall cost of the Games. 2 Following a review of the treatment of income from Wireless Telegraphy Act receipts, it has been determined that these receipts are more properly shown on the Estimate as being paid directly into the Consolidated Fund rather than, as previously, a proportion being shown as retained by DCMS to fund Ofcom s spectrum management activities. As a result these costs ( 66.8m/ 62.3m/ 62.6m) will remain netted off within the DCMS Resource budget as negative DEL. However, they will now be treated as nonvoted income, with effect from the Supplementary Estimates. This ensures that all cash income from spectrum receipts is surrendered to the consolidated fund in line with the section 400 of the Communications Act This is a purely technical adjustment and there has been no change to the actual treatment of the income. 3 The BBC World Service, from 1 April 2014, will be funded from licence fee income as opposed to grant funding by the Foreign and Commonwealth Office.

3 Table 2 Reconciliation between SR2010 settlement and Main Estimate Provision million Resource DEL SR2010 Allocation Programme/Budget Note Summary Additions/Reductions 5.1 Broadband Delivery UK (BDUK) and Ofcom -9.0 Reduction of Administration spending 1 MOG transfer from the Department for Business, Innovation and Skills (BIS) 2 Following the announcement on public sector pay policy in Autumn Statement To HM Treasury 3 Funding for the Royal Household, where responsibilities, currently in a number of departments are being centralised -0.3 From abolished MLA budget 4 Transferred to The National Archives 1.0 Additional funding for BDUK 5 Following the announcement in Autumn Statement 2011 for mobile infrastructure Reduction in programme Budget 6 Following the announcement in Autumn Statement 2012 of a 2% reduction in funding 3.0 Creative Industries 7 Announced in Autumn Statement 45.8 Government Equalities Office and the Equality and Human Rights Commission MOG transfer from the Home Office 10.0 Budget exchange 9 Budget exchange in Supplementary Reduction in Programme Budget 10 Budget 2013 announcement of a further 1% cut Reduction in Programme Budgets % Autumn Statement reduction 25.0 Budget Exchange 9 Budget Exchange actioned in Supplementary Estimate 0.1 Child Internet Safety 12 MOG transfer from DfE 1.0 To Ofcom for Spectrum Clearance and awards project From CLG an agreed Capital to Resource switch 0.8 Imperial War Museum - loan 13 The Museum Freedoms Pilot 10.0 Budgetary cover for museums to spend their historic reserves 10.0 Cathedral repairs grant scheme 13 The Museum Freedoms Pilot 14 Budget 2014

4 Main Estimate Total* *Difference due to rounding Capital DEL SR2010 Allocation 59.5 Programme/Budget Note Summary Additions/Reductions 9.0 Broadband Delivery UK (BDUK) and Ofcom 20.0 Additional funding for Urban Broadband delivery managed by BDUK 60.0 Additional funding for the Mobile Infrastructure project 1 MOG transfer from BIS 5 Following an announcement in Autumn Statement Following an announcement in Autumn Statement Equality and Human Rights Commission 8 MOG transfer from the Home Office 87.0 Budget Exchange 9 Budget exchange in Supplementary Estimate Funding for the London Legacy Development 15 Transfer to Communities and Local Government Corporation 57.0 From Urban Broadband 16 Reprofiling of Urban Broadband -4.4 From Broadband budget Capital to Admin switch to be actioned at Supplementary Estimate 37.0 Budget Exchange 9a Budget exchange actioned in Supplementary Estimate -0.5 CLG capital/resource swap From CLG an agreed Capital to Resource switch For Broadband projects 17 BBC funding for superfast broadband rollout 60.0 Rural Broadband 16 Budget reprofile for Rural 15.0 Budgetary cover four museums to spend historic reserves 6.5 Imperial War Museum and Science Museums Group - loan -1.0 To Home Office for Citation project Main Estimate Total Broadband 13 The Museum Freedoms Pilot 13 The Museum Freedoms Pilot Budget Cover transfer

5 Notes to explain significant increases in the Resource and Capital DEL from SR2010 to Main Estimate Note 1 The significant change to the funding levels following SR 2010 is the MOG transfer between BIS and DCMS. The transfer involves: Administration 3.5m 3.4m 3.4m 3.4m Prog. Resource Expenditure 72.2m 72.7m 64.1m 64.4m Resource Income m m m m Capital Expenditure 102.0m 116.0m 53.0m 9.0m Note 2 In the Autumn Statement 2011 the government set public sector pay awards at an average of one per cent for each of the two years after the current pay freeze comes to an end. Departmental budgets are being adjusted in line with this policy, with the exception of the health and schools budgets, where the money saved will be recycled. For DCMS this represents 9m in both and Note 3 From 1 April 2012 the Sovereign Grant replaced other sources of funding for the monarch s official duties. These were the Civil List from the Exchequer, grant for royal travel from the Department for Transport and grant for the maintenance of occupied royal palaces and for communications and information from DCMS, all of which have now ended. The Sovereign Grant is paid to the Royal Household. It finances the net spending of the Royal Household, which is consolidated within HM Treasury s Supply Estimate. Note 4 Support and leadership for the UK s archive sector transferred to The National Archives (TNA) in April 2012 following the closure of the Museums, Libraries and Archives Council (MLA). The MLA s role involved acting as an advocate for the sector and helping archives improve their services and public access. Challenges included the growing need to manage digital information, promoting an innovative approach to delivering the highest standards in service, and responding to public demand for online access to digitised content. Note 5 On 3 October 2011 it was announced that the Government would invest up to 150 million to improve the coverage and quality of mobile network voice and basic data services in areas that cannot currently get coverage. In Budget 2012, the Chancellor announced that this project will cover up to 60,000 premises and ten key roads.

6 As announced in the Autumn Statement 2011, the Government established a new 100 million Super Connected City Programme to create up to 10 super-connected cities across the UK with better and faster broadband technology by Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and London were successful applicants to the programme. In addition it was announced at Budget 2012 that a further 50 million would be made available for Aberdeen, Brighton and Hove, Cambridge, Coventry, Derby, Derry/Londonderry, Newport, Oxford, Perth, Portsmouth, Salford and York. A major plank of this Programme is the Connection Voucher Scheme, launched in December 2013, to provide up to 3,000 to businesses to pay for the capital connection costs for faster and better broadband. All 44 local projects as part of the Rural Broadband Programme have completed their procurements, with over half of the projects now in delivery providing superfast broadband upgrades to homes and businesses across the UK. Over 300,000 premises can now access superfast speeds due to the programme and roll out is currently at over 10,000 premises per week, which will rise to 40,000 premises per week by the summer. Note 6 In Autumn Statement 2012 the Chancellor announced a 2% reduction in unprotected departments DEL budgets in For DCMS this represents 22m in Note 7 In Autumn Statement 2012 the Chancellor announced the Skills Investment Fund (SIF) will be given an extra 3m each year over the next 2 years, with government match-funding for voluntary industry contributions. This grant is to match fund voluntary industry contributions to the existing Skills Investment Fund (SIF) which will expand its scope to provide entry and professional level training for individuals in the film, television, animation and video games sectors. Note 8 On 4 September 2012 the Prime Minister appointed Rt Hon Maria Miller as Minister for Women and Equalities necessitating a transfer of the Government Equalities Office and the Equality and Human Rights Commission from the Home Office to the Department for Culture, Media and Sport. A Machinery of Government change announcement was made on 18 th December 2012 to formally give notice of the transfer. This announcement resulted in the transfer of staff and budgets in accordance with standard Cabinet Office Statement of Practice and Machinery of Government guidelines. Note 9 Budget Exchange is a mechanism that allows Departments to carry forward a forecast DEL underspend from one year to the next. It is intended that Budget Exchange will provide departments with flexibility to manage their budgets, while strengthening spending control and providing greater certainty in order to support effective planning. Under Budget Exchange, departments may surrender a forecast DEL underspend in advance of the end of the financial year (by means of a DEL reduction in the Supplementary Estimate) in return for a corresponding DEL increase in the following year, subject to a prudent limit. Note 9a - Capital Budget Exchange 37m - the three programmes in the BDUK portfolio are currently accelerating: (i) with all 44 local projects signed up to broadband contracts, over 300,000 premises currently upgraded and over 10,000 premises per week gaining access to superfast broadband which will rise to 40,000 per week by the summer, (ii) cities launching their broadband connection

7 voucher schemes to SMEs, and (iii) mobile site searches occurring around the country. We ve taken the opportunity to realign the three broadband projects with the latest delivery timetable to ensure funding is in place when needed to support delivery on the ground for these priority programmes. Note 10 Announced by the Chancellor in Budget 2013 was a further 1% reduction in unprotected departments DEL budgets. For DCMS this represented 11m in Note 11 Announced by the Chancellor in Autumn Statement 2013 was a further reduction of just over 1% in unprotected departments DEL budgets. For DCMS this represented 13m in Note 12 Child Internet Safety - Following the Prime Minister s speech in July, Child Exploitation and Online Protection, part of the National Crime Agency, gave the search engines a list of terms which they said were unambiguous. The government will work with this Agency and others to monitor the effectiveness of the new technology introduced by Google and Microsoft. It is imperative that they can show they are preventing imagery or pathways are returned against blacklisted search terms identified by the National Crime Agency. Following a discussion between the Prime Minister, the Secretary of State for Culture, Media and Sport and the Home Secretary on 26 June 2013 it was agreed the DCMS should take the Government s lead for issues around children accessing pornography online. As a consequence the small policy function currently based in DfE, which leads this work and provides the secretariat function for the UKCCIS Board, transferred over to DCMS with effect from October Note 13 The Museums Freedoms Pilot Scheme the 2013 Spending Round announced a pilot of new operational freedoms to help the museums sector to continue to thrive and to become more financially independent. National museums will have greater autonomy to take independent decisions on issues such as pay and procurement, and to access finance to unlock new projects, commercial revenues and philanthropic donations. The increase in resource and capital budgets for museums included in this revised Estimate will enable them to spend self-generated reserves according to the most commercially sensible timing, and covers the provision of loan financing to a small number of institutions. Note 14 In Budget 2014 the Chancellor announced a new two-year 20 million fund for repairs to cathedrals, 10m will be available in The Cathedrals are a key part of forming the cultural identity of many of England's cities, and are powerful symbols of our shared history. The Church of England's 42 cathedrals alone welcome over 11m visitors a year with only 6,000 staff but over 15,000 dedicated volunteers; demonstrating how much cathedrals contribute to, but also depend upon, the communities around them. Church of England Cathedrals generate annually at least 350 million for the economy. The 20m of grants will help meet the costs of urgent repairs to these buildings and support local fundraising efforts by Church of England and Roman Catholic Cathedrals.

8 Note 15 Ministers agreed in 2011 that the legacy transformation of the Olympic Park, rather than being carried out by the Olympic Delivery Authority (ODA), would be carried out by the Olympic Park Legacy Company (and subsequently by its successor, the London Legacy Development Corporation, a body answerable to the Mayor of London and funded by the Greater London Authority (GLA)). The budget for legacy transformation was held by the ODA and the funding by DCMS. This funding was transferred from DCMS to the Department for Communities and Local Government (CLG) as the Department which funds the Greater London Authority. The funding for comprising 17.2m Capital was transferred in the Supplementary Estimates and is to be funded from the proceeds from the sale of the Olympic Village, due in summer Note 16 The BDUK funding profile was re-profiled at Budget The total funding invested over the lifetime of the projects will remain the same but the spend profile has been adjusted to unblock and accelerate delivery, ensuring the right amount of funding is available in the years in which local authority projects need it. This re-profiling exercise is an on-going process. The profiles will be kept under review as new information is received from delivery partners. Note 17 As part of the 2010 Licence Fee settlement, the BBC Trust has signed an agreement to contribute to the cost of providing broadband. The BBC will pay 150m of licence fee income a year for two years to the DCMS. This will pay for funding broadband roll-out to rural areas across the UK. Update for the Committee on the ongoing work on the Olympic Village The post-games conversion of the Olympic Village to provide 2818 units of rented accommodation in 1-4 bedroom apartments, 1,379 of which are affordable housing, including some for shared equity purchase and 1,439 for private rental, plus the Chobham Academy School and the Sir Ludwig Guttman Health Centre, is well underway. The Chobham Academy and the Health Centre are open, and the first residents moved into the Village in November By 31st March 2014 seven of the 11 residential plots in the Village were either occupied or ready for occupation. The remaining four will be completed by early summer The completion of the sale will follow shortly afterwards. A substantial part of the income from sale (c 317 million) will be accrued to and the remainder will be accrued to ,

9 Table 3 Comparing the Grant in Aid funding of our Arm s length bodies in 2010/11, through to 's Arm s Length bodies that receive Grant in Aid 2010/11 outturn 2011/12 Outturn 2012/13 Outturn 2013/4 Provision 2014/5 Plans % (-) reduction (+) increase over British Museum 46,343 56,051 45,378 43,862 42, Natural History Museum 48,586 46,480 45,760 44,314 43, Imperial War Museum 23,910 21,961 31,186 21,243 17, National Gallery 28,201 26,744 26,320 25,520 24, Royal Museums Greenwich 19,002 17,258 16,848 16,382 16, National Museums Liverpool 23,712 21,875 22,061 20,912 20, National Portrait Gallery 7,577 7,398 7,277 7,040 6, Science Museum Group 40,153 38,254 43,660 42,247 45, Tate Gallery 54,729 45,105 34,912 24,394 32, Victoria & Albert Museum 44,318 41,355 48,205 39,408 31, The Wallace Collection 4,212 2,983 2,946 2,994 2, Museum of Science and Industry 4,882 3,322 * * * * Manchester Sir John Soane s 1,169 1,130 1,111 1,572 1, Horniman Museums and Gardens 4,518 4,385 4,199 4,258 3, Geffrye Museum 1,773 1,674 1,645 1,789 1, Royal Armouries 8,389 7,901 8,773 7,620 7, British Library 105, , ,868 95,494 93, Public Lending Right 7,451 7,206 7,084 ***** ***** ***** Museums, Libraries and Archives 53,787 56,495 6,702 ** ** Council incl. Renaissance in the Regions ** funding **Arts Council England 437, , , , , Sport England 121,389 97,571 99,814 88,634 82, UK Sport 55,363 60,651 65,966 43,020 49, UKAD 6,344 6,344 6,498 6,031 5, Sports Ground Safety Authority ,126 1,133 1, English Heritage 129, , ,437 99,846 99, Churches Conservation Trust 3,005 2,926 2,828 2,787 2, Commission for Architecture & the 16,127 3,515 *** *** *** **** Built Environment National Heritage Memorial Fund 0 0 5,000 10,000 5, Royal Household 16,261 15, **** **** **** VisitBritain 40,323 47,771 48,672 46,830 47, UK Film Council 45, *** *** *** *** British Film Institute 0 33,589 27,914 24,301 15, Ofcom 0 114, ,097 75,015 72,

10 National Lottery Commission 5,940 5,100 1,958 2,495 2,897* *Under discussion The Gambling Commission Olympic Delivery Authority (awaiting 971, , , , , confirmation for Equality and Human Rights Commission 0 35,975 30,981 16,577 17, * Budget now within the Science Museum Group's boundary ** Majority of MLA's budget moved to ACE *** Body closed/abolished **** Budget moved to HM Treasury Estimate ***** PLR merged into the British Library S4C will now be mostly financed by the BBC The attached Annex illustrates budgets versus outturn for the last 3 years and plans until This memorandum has been prepared with reference to the guidance in the Estimates Manual issued by HM Treasury. This memorandum has been approved by the DCMS Accounting Officer.