Transparency data

9 May 2022: Northern Ireland Agri-Food Support Sub-Programme Programme Business Case accounting officer assessment

Updated 5 October 2023

An accounting officer (AO) assessment for the Northern Ireland Agri-Food Support Sub-Programme (known by traders as the Digital Assistance Scheme) was conducted alongside the development of a Programme Business Case (PBC) in June 2022.

The Permanent Secretary (Tamara Finkelstein) has been satisfied that the programme meets the 4 accounting officer standards of regularity, propriety, value for money and feasibility expected by Parliament and the public for use of public resources based on the assessment provided. Defra applies a discrete fifth test of affordability (which is embedded within the propriety test) because of its critical importance. The AO assessment was approved on 9 May 2022 and HM Treasury approval of the PBC was granted on 29 June 2022.

It is normal practice for accounting officers to scrutinise significant policy proposals or plans to start or vary major projects, and then assess whether they measure up to the standards set out in Managing Public Money. From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an accounting officer has agreed an assessment of projects within the Government Major Projects Portfolio (GMPP).

Background and context

Since the UK’s decision to withdraw from the European Union (EU) there have been challenges in protecting Northern Ireland’s place in the UK internal market and avoiding disruption to everyday lives. Under the terms of the Northern Ireland Protocol, agri-food trade between Great Britain and Northern Ireland has been subject to the same extensive Official Control Regulations. This has led to disruption for agri-food traders and the flow of goods. There are a range of temporary measures disapplying some of the controls, such as through the Scheme for Temporary Agri-Food Movements to Northern Ireland (STAMNI) Compliance Declaration arrangements, which provides temporary exemption from these requirements for certain goods.

The Northern Ireland Agri-Food Support Sub-programme will help address many of these challenges by delivering more efficient certification processes for the movement of agri-food goods from Great Britain to Northern Ireland by digitising the certificates required by traders. It implements a digital solution that enables certification to interface smoothly between trader, certifier, United Kingdom, EU and Northern Ireland systems. This will support the maintenance of proper documentation and assurance processes that goods arrive at their intended destination. As a leading and innovative digital programme it will create technology that will also be extended to the movement of goods between Great Britain and the EU.

Assessment against the Accounting Officer tests

Regularity

A proposal must be supported by clear legal powers to take the suggested action with defined affirmative procedures having been provisioned. In this case, the legal basis for spending will be underpinned by the retained EU law Official Controls Regulation (OCR) (EU 2017/625). These regulations address the official controls and activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products. The regulation was published by the European Commission on 15 March 2017 and applied from 14 December 2019 and was retained by the UK.

Assessment: met

Propriety

The use of public funds needs to be proper as well as regular. Therefore, it needs to comply with the standards set out in Managing Public Money which includes obtaining the necessary internal and if necessary external HM Treasury approvals.

The programme continues to follow the expected assurance processes for expenditure of this nature and value. The PBC was approved by Defra’s Investment Committee in May 2022 and HM Treasury in June 2022. All costs (actual and estimated) were determined with input from delivery partners and reviewed by senior officials across legal, commercial and finance. HM Treasury officials have been engaged in the development of proposals and continue to work closely with Defra on the implementation approach.

The programme entered the GMPP in April 2021. There are robust governance and controls established for expenditure with regular internal reviews. External assurance has been provided by an Infrastructure and Projects Authority (IPA) Review in April 2022.

Assessment: met

Value for money

The proposal must be good value for money for the Exchequer and the department and, where possible, a full evaluation should be undertaken. From an economic perspective, biosecurity and secure borders are public goods, meaning that government intervention and provision of border operations are economically justified. Public goods are typically not provided by free market mechanisms, and therefore there is clear economic rationale for government intervention. Government intervention in controls at the border is further justified by the market failures which would exist if provision were left to the market.

The UK’s withdrawal from the EU and the implementation of the Northern Ireland Protocol has increased costs to traders moving goods from Great Britain to Northern Ireland. Temporary measures disapplying some of the controls, put in place by government, have so far prevented product de-ranging or price increases in Northern Ireland.

Six delivery options (including a ‘do-nothing’ option) were assessed against critical success factors in the PBC, with switching value analysis of the options and the importance of certain impacts (that is, legal obligations) appropriately taken into consideration in the appraisal. The decision was taken to pursue the option which maximised digitisation of agri-food movement certificates with wider support for supply chain and ports. This option best meets government commitments to Northern Ireland and addresses the risks to Northern Ireland consumer choice and food security. It best avoids the negative impacts on businesses, traders and consumers and has a positive net present social value (with the inclusion of the benefits for Great Britain to EU movement of agri-food goods), meeting the conditions for value for money.

Assessment: met

Feasibility

This policy is subject to ongoing evolution and clarification in line with government policy. As a result, there is an ongoing review of the feasibility of delivery, controlled through robust governance structures (as detailed in the Management Case). The programme has worked closely with the IPA and Government Digital Services to ensure that design of the product solutions remains compliant with government’s IT strategies, and with the Border, Trade and Brexit Opportunities Group and HM Treasury to support the strong links necessary to ensure success.

Work to develop the digital solutions under the Northern Ireland Agri-Food Support Sub-programme is underway and there is effective governance in place to support agile digital delivery. It is the programme’s view that the proposed delivery schedule can be implemented effectively and credibly, in line with policy intention.

Assessment: met

Affordability

Funding for the Northern Ireland Agri-Food Support Sub-Programme was agreed with HM Treasury in the Spending Review 2021 settlement. An Outline Business Case was approved by HM Treasury in April 2021 that allowed spending until the end of the financial year 2021 to 2022. Approval from Chief Secretary to the Treasury was given to allow spending until end of June 2022. From that point the PBC was approved by HM Treasury, allowing spend until the end of the sub-programme (March 2025).

Extensive investigation of the delivery estimates has been conducted, including a thorough cost allocation review to ensure that both resource and capital are allocated in line with accounting regulations, consolidated budgeting guidance and National Audit Office guidelines.

Assessment: met

Conclusion

As the accounting officer for Defra, I considered this assessment of the Northern Ireland Agri-Food Support Sub-Programme Programme Business Case and approved it on 9 May 2022.

I have prepared this summary to set out the key points which informed my decision, and in line with IPA guidance the PBC will be reviewed at least annually, and a revised accounting officer assessment will be undertaken should there be any material changes. If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised summary, setting out my assessment of them.

This summary will be published on GOV.UK. Copies will be deposited in the library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Tamara Finkelstein, Permanent Secretary, Defra