Financial statements

Question 1

Consolidated statement of comprehensive net expenditure for the year ended 31 March 2025

Accepted Answer

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies restated £m	31 Mar 2024 DSIT group restated £m
Revenue from contracts with customers	5.1	(138)	(1,376)	(114)	(1,094)
Total operating income		(138)	(1,376)	(114)	(1,094)
Staff costs	3	315	1,251	290	1,159
Purchase of goods and services	4.1	2,871	3,784	1,780	2,649
Amortisation, depreciation and impairment charges	4.2	61	360	53	378
Provision and other liabilities expenses	4.3	-	16	-	(18)
Grants	4.4	11,003	10,312	11,395	9,453
Other operating expenditure		-	(18)	38	40
Total operating expenditure		14,250	15,705	13,556	13,661
Net operating expenditure		14,112	14,329	13,442	12,567
Finance income	5.2	(33)	(62)	(81)	(106)
Finance expense		8	(12)	5	(16)
Share of post-tax loss/(profits) of associates and joint ventures	11	128	76	57	70
Net expenditure for the year		14,215	14,331	13,423	12,515
Other comprehensive net expenditure
Items which will not be reclassified to net operating expenditure
Revaluation of property, plant and equipment		-	(15)	-	(75)
Revaluation of intangible assets		-	(11)	-	(10)
Items which may be reclassified to net operating expenditure
Revaluation of investments		11	22	3	1
Other revaluation movements		111	24	38	(96)
Actuarial (gains)/losses		-	(50)	-	(35)
Total other comprehensive net expenditure		122	(30)	41	(215)
Comprehensive net expenditure for the year		14,337	14,301	13,464	12,300

Notes

Core department and agencies comprise: the core department, Building Digital UK, and UK Space Agency.
All operations are continuing.
Further analysis of Staff costs can be found in the staff note in the Accountability report.
The Notes to the accounts form part of these accounts.

Question 2

Consolidated statement of financial position as at 31 March 2025

Accepted Answer

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies restated £m	31 Mar 2024 DSIT group restated £m
Revenue from contracts with customers	5.1	(138)	(1,376)	(114)	(1,094)
Total operating income		(138)	(1,376)	(114)	(1,094)
Staff costs	3	315	1,251	290	1,159
Purchase of goods and services	4.1	2,871	3,784	1,780	2,649
Amortisation, depreciation and impairment charges	4.2	61	360	53	378
Provision and other liabilities expenses	4.3	-	16	-	(18)
Grants	4.4	11,003	10,312	11,395	9,453
Other operating expenditure		-	(18)	38	40
Total operating expenditure		14,250	15,705	13,556	13,661
Net operating expenditure		14,112	14,329	13,442	12,567
Finance income	5.2	(33)	(62)	(81)	(106)
Finance expense		8	(12)	5	(16)
Share of post-tax loss/(profits) of associates and joint ventures	11	128	76	57	70
Net expenditure for the year		14,215	14,331	13,423	12,515
Other comprehensive net expenditure
Items which will not be reclassified to net operating expenditure
Revaluation of property, plant and equipment		-	(15)	-	(75)
Revaluation of intangible assets		-	(11)	-	(10)
Items which may be reclassified to net operating expenditure
Revaluation of investments		11	22	3	1
Other revaluation movements		111	24	38	(96)
Actuarial (gains)/losses		-	(50)	-	(35)
Total other comprehensive net expenditure		122	(30)	41	(215)
Comprehensive net expenditure for the year		14,337	14,301	13,464	12,300

Notes

Core department and agencies comprise: the core department, Building Digital UK (BDUK), and UK Space Agency (UKSA).
The Notes to the accounts form part of these accounts.

Sarah Munby

Permanent Secretary and Principal Accounting Officer

30 June 2025

Question 3

Consolidated statement of cash flows for the period ended 31 March 2025

Accepted Answer

The statement of cash flows shows the changes in cash and cash equivalents of the department during the reporting period. It shows how the department generates and uses cash and cash equivalents by classifying cashflows as operating, investing and financing activities. The amount of net cashflows arising from operating activities is a key indicator of service costs and the extent to which these operations are funded by way of income from the recipients of services provided by the department. Investing activities represent the extent to which cash inflows and outflows have been made for resources which are intended to contribute to the departments’ future public service delivery.

	Note	2024–25 Core dept and agencies £m	2024–25 DSIT group £m	2023–24 Core dept and agencies restated £m	2023–24 DSIT group restated £m
Cash flows from operating activities
Net operating cost		(14,215)	(14,331)	(13,423)	(12,515)
Adjustment for non-cash expenditure		755	414	150	443
(Increase)/decrease in trade and other receivables	12	243	142	(726)	(1,061)
Increase/(decrease) in trade payables and other liabilities	14	758	892	1,508	1,490
Less movements in payables relating to items not passing through the Consolidated SOCNE		(13)	(14)	(1,202)	(1,198)
Use of provisions	16	-	(1)	(1)	(3)
Interest on lease liabilities		2	5	1	3
Payments to retirement benefit obligations		-	(12)	-	3
Other cash flow adjustments		(1)	-	-	-
Net cash outflow from operating activities		(12,471)	(12,905)	(13,693)	(12,838)
Cash flows from investing activities
Purchase of property, plant and equipment		(27)	(305)	(50)	(311)
Purchase of investment property		-	-	(44)	(44)
Purchase of intangible assets		(66)	(83)	(7)	(12)
Additions of right-of-use assets		-	-	(1)	(15)
Additions to lease liabilities		-	-	1	13
Proceeds of disposal of property, plant and equipment		-	1	-	1
Proceeds of disposal of investment property		-	-	2	2
Disposal of right-of-use assets		-	4	-	-
Repayments of loans and investments		40	232	39	87
Other investments and loans made		(62)	(245)	(37)	(110)
Net cash outflow from investing activities		(115)	(396)	(97)	(389)
Cash flows from financing activities
From Consolidated Fund (supply) – current year		13,318	13,318	14,719	14,719
From Consolidated Fund (supply) – in respect of machinery of government transfer of function		-	-	241	241
Payment of lease liabilities		(9)	(22)	(6)	(18)
Grant-in-aid received from DSIT		(566)	-	-	-
Other adjustments relating to financing activities		-	-	(1)	(1)
Net financing		12,743	13,296	14,953	14,941
Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund		157	(5)	1,163	1,714
Receipts due to the Consolidated Fund which are outside the scope of the department’s activities		599	599	200	194
Payments of amounts due to the Consolidated Fund		(599)	(599)	(113)	(113)
Payments of amounts due to the Consolidated Fund for prior year		(140)	(140)	-	-
Net increase/(decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund		17	(145)	1,250	1,795
Cash and cash equivalents opening balance		1,652	2,449	402	654
Cash and cash equivalents at the end of the period	13	1,669	2,304	1,652	2,449

Notes

The Notes to the accounts form part of these accounts.

Question 4

Statement of changes in taxpayers’ equity for the period ended 31 March 2025

Accepted Answer

Table: Statement of changes in taxpayers’ equity (core department and agencies)

	Note	General fund £m	Revaluation reserve £m	Total taxpayers’ equity £m
Balance at 1 Apr 2023 restated		1,195	76	1,271
Net parliamentary funding – drawn down		14,719	-	14,719
Net parliamentary funding – deemed		375	-	375
Supply (payable)/receivable adjustment		(1,520)	-	(1,520)
Net expenditure for the year		(13,423)	-	(13,423)
Non-cash adjustments
Auditors’ remuneration	4.1	1	-	1
Movement in reserves
Other comprehensive net expenditure/income for the year		-	(41)	(41)
Transfers between reserves		4	(4)	-
Other movements		244	-	244
Balance at 31 Mar 2024 restated		1,595	31	1,626

Balance at 1 Apr 2024 restated		1,595	31	1,626
Net parliamentary funding – drawn down		13,318	-	13,318
Net parliamentary funding – deemed		1,520	-	1,520
Supply (payable)/receivable adjustment		(1,675)	-	(1,675)
Net expenditure for the year		(14,215)	-	(14,215)
Non-cash adjustments
Auditors’ remuneration	4.1	1	-	1
Movement in reserves
Other comprehensive net expenditure/income for the year		-	(122)	(122)
Transfers between reserves		3	(4)	(1)
Other movements		(22)	-	(22)
Balance at 31 Mar 2025		525	(95)	430

Notes

General fund: The general fund represents total assets less liabilities, to the extent that the total is not represented by other reserves and financing items for the department and its agencies and ALBs.
Revaluation reserve: Reflects the unrealised element, net of tax, of the cumulative balance of gains/(losses) on revaluations of assets.

Table: DSIT group – consolidated statement of changes in taxpayers’ equity

	Note	General fund £m	Revaluation reserve £m	Total	Pension reserve £m	Charitable funds – unrestricted/restricted £m	Non controlling interest £m	Total reserves £m
Balance at 1 Apr 2023 restated		2,881	1,674	4,555	748	426	158	5,887
Net parliamentary funding – drawn down		14,719	-	14,719	-	-	-	14,719
Net parliamentary funding – deemed		375	-	375	-	-	-	375
Supply (payable)/receivable adjustment		(1,520)	-	(1,520)	-	-	-	(1,520)
Income payable to the Consolidated Fund		(3)	-	(3)	-	-	-	(3)
Net expenditure for the year		(12,515)	-	(12,515)	-	-	-	(12,515)
Non-cash adjustments
Auditors’ remuneration	4.1	2	-	2	-	-	-	2
Movements in reserves
Other comprehensive net (expenditure)/income for the year		34	181	215	-	-	-	215
Transfers between reserves		99	(92)	7	-	(2)	(5)	-
Actuarial gain in the pension scheme		(35)	-	(35)	35	-	-	-
Other movements		203	-	203	35	-	-	238
Balance at 31 Mar 2024 restated		4,240	1,763	6,003	818	424	153	7,398

Balance at 1 Apr 2024 restated		4,240	1,763	6,003	818	424	153	7,398
Net parliamentary funding – drawn down		13,318	-	13,318	-	-	-	13,318
Net parliamentary funding – deemed		1,520	-	1,520	-	-	-	1,520
Supply (payable)/receivable adjustment		(1,675)	-	(1,675)	-	-	-	(1,675)
Net expenditure for the year		(14,331)	-	(14,331)	-	-	-	(14,331)
Non-cash adjustments
Auditors’ remuneration	4.1	2	-	2	-	-	-	2
Movements in reserves
Other comprehensive net (expenditure)/income for the year		51	(21)	30	-	-	-	30
Transfers between reserves		43	(82)	(39)	-	(1)	44	4
Actuarial gain in the pension scheme		(50)	-	(50)	50	-	-	-
Other movements		3	-	3	-	-	-	3
Balance at 31 Mar 2025		3,121	1,660	4,781	868	423	197	6,269

Notes

The Notes to the accounts form part of these accounts.

General fund: The general fund represents total assets less liabilities, to the extent that the total is not represented by other reserves and financing items for the department and its agencies and ALBs.
Revaluation reserve: Reflects the unrealised element, net of tax, of the cumulative balance of gains/(losses) on revaluations of assets.
Pension reserve: This is a reserve used to cover pension-related transactions and obligations.
Charitable funds – unrestricted/restricted: This is a legacy reserve created from historical transactions relating to NESTA charitable funds.
Non-controlling interest: DSIT considers all ALBs presented in the Government Resources and Accounts Act 2000 (GRAA) for group consolidation, the non-controlling interest recognises that DSIT may not hold a 100% shareholding in select ALBs.

Question 5

Notes to the accounts

Accepted Answer

1. Accounting policies

1.1 Basis of accounting

These financial statements have been prepared in accordance with IFRS as adapted and interpreted by the HM Treasury 2024–25 FREM and as set out in the accounts direction to the department pursuant to section 5(2) of the GRAA except as described at 1.2 below.

Where the FREM permits a choice of accounting policy, the policy selected is that judged to be most appropriate to the particular circumstances of the core department and its consolidated entities (the departmental group) for the purpose of giving a true and fair view. The policies adopted by the departmental group are described below; they have been applied consistently to items considered material to the accounts.

The Consolidated Statement of Financial Position (SOFP) shows significant net assets, and Annex A sets out DSIT’s planned budget for 2025–26, in accordance with total expenditure plans in the published Spending Review 2025 document. DSIT has accordingly prepared these financial statements on a going concern basis, assuming that it will continue its operations for the foreseeable future.

1.2 Accounting convention

These financial statements have been prepared on an accruals basis under the historical cost convention, modified by the revaluation of property, plant and equipment, intangible assets, investment properties and financial instruments at fair value to the extent required or permitted under IFRS as set out in these accounting policies.

1.3 Presentational currency

The financial statements are presented in the functional currency of the departmental group, pounds sterling, as mandated by the FREM.

1.4 Basis of consolidation

The departmental group accounts consolidate the balances of the core department and designated bodies listed in note 24, which fall within the departmental boundary as defined in the FREM and make up the departmental group, excluding transactions and balances between them.

Where the Office for National Statistics (ONS) designates a body retrospectively such that the body should have been designated for consolidation in a prior period, the accounts are voluntarily restated to reflect the position from the effective date of classification.

The consolidated bodies prepare accounts in accordance with either the FREM, the Charities’ Statement of Recommended Practice (for charities), or IFRS applied in accordance with the provisions of the Companies Act 2006 (for limited companies). For those bodies that do not prepare accounts in accordance with the FREM, adjustments are made upon consolidation, if necessary, where differences would have a significant effect on the accounts.

The core department and its designated bodies are all domiciled in the UK.

1.5 Machinery of government changes

On 8 July 2024, the DSIT secretary of state announced a machinery of government change, moving GDS, CDDO and i.AI from the Cabinet Office into DSIT.

The integration of entities from the Cabinet Office is accounted for as a transfer by merger. This means that the group accounts reflect the combined entity’s results as if the revised DSIT group had always existed.

The results and cashflows in these accounts relate to activities undertaken by DSIT from 1 April 2024 to 31 March 2025, adjusted to achieve uniformity of accounting policies. In accordance with the transfer by merger principles, prior year balances have been restated to aid comparability with 2023–24.

See note 23 for details of the machinery of government change and the impact of this on the prior year comparatives.

1.6 Changes in accounting policies

Accounting policies are unchanged compared to those in the 2023–24 group accounts.

1.7 New accounting standards adopted in the year and FREM changes

No new accounting standards have been adopted in these financial statements.

1.8 Applicable accounting standards issued but not yet adopted

IFRS 17: Insurance Contracts replaces IFRS 4: Insurance Contracts and is to be included in the FREM for mandatory implementation from 2025–26. It establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of this Standard.

IFRS 17 requires insurance contracts, including reinsurance contracts, to be recognised on the SOFP as the total of the fulfilment cashflows and the contractual service margin (CSM).

The fulfilment cashflows consist of the present value of future cash flows calculated using best estimate assumptions with an explicit risk adjustment for non-financial risk.

The risk adjustment is released to the SOCNE as risk expires. The CSM is the unearned profit on insurance contracts and is released to the SOCNE over the insurance contract period as insurance services are provided. Where an insurance contract is onerous, it will have no CSM and the onerous element of the insurance contract will be recognised immediately in the SOCNE.

On restatement, it is estimated IFRS 17 will have nil impact on taxpayers equity at 31 March 2025 and the comprehensive net expenditure for 2024–25. This is driven by the absence of relevant contracts or commitments issued by the department that are within the scope of IFRS17.

1.9 Operating income

Operating income relates directly to the operating activities of the departmental group and includes the following types of income: fees charges and recharges to and from external customers and central government organisations, income from other government departments and the public sector, sales of goods and services, European Union funding, current and capital grants, and miscellaneous and other income. The key categories are income from contracts with customers, and grants.

Operating income from contracts with customers

Income from contracts with customers, which includes all non-grant income, is allocated to performance obligations, on a stand-alone selling price basis, and is recognised when the related performance obligation is satisfied, either over time or at a point in time.

The performance obligations are typically satisfied upon delivery of goods and services in accordance with the contractually defined timescales. The payment terms for the invoices are typically 30 days. Where the departmental group receives consideration prior to the transfer of goods and services, the amount is recorded as contract liabilities. Where the departmental group has transferred goods and services to a customer and the right to consideration is conditioned on something other than the passage of time, the amount is recorded as contract assets.

The measurement of income takes account of significant financing components, variable consideration, and any discounts or rebates.

Operating income includes fees, charges and recharges, including for fees associated with UKRI managed programmes. Further details are provided in Note 5.1 Operating income.

Grant income

Grant income, including European funding, is recognised when there is reasonable assurance that there are no conditions attached, or that any such conditions have been complied with and there is reasonable assurance the grant will be received.

Grant income receivable and funding for collaborative projects are recognised as income over the period in which the related costs are recognised for which the grant or funding is intended to compensate in accordance with IAS 20.

1.10 Staff costs

Staff costs are recognised as expenses when the departmental group becomes obligated to pay them, including the cost of any untaken leave entitlement.

1.11 Grants payable

Grants payable are recognised when the grant recipient has performed the activity that creates an entitlement to the grant under the terms of the scheme and includes estimates for claims not yet received.

Where an intermediary acts as agent in distributing grant on behalf of the department, grants payable are recognised when the grant recipient becomes entitled to the grant.

Research grants, fellowships and studentships

Research grants and fellowships are paid on an instalment basis in accordance with an agreed payment profile. Grant payments made in advance or in arrears are accounted for on a prepayments or accruals basis in the financial statements. Where the grant documentation does not specify a pre-agreed payment profile or other matching considerations, obligations are recognised in full. Studentship payments are paid on a quarterly instalment basis in advance or arrears directly to the research institute.

Where the profile indicates that an unclaimed and/or unpaid amount exists at the SOFP date, such sums are accrued in the financial statements. Where the profile indicates a payment of grant that is yet to be utilised by the recipient, a prepayment is recognised.

Research England grants

Most grants are paid on an agreed profile, as a contribution to research costs within institutions. The profiles are periodically updated throughout the academic year, and as such no financial year-end accruals are expected for these streams of expenditure. For Research England grants, such as the Strength in Places Fund, which fund agreed and specified eligible activity, expenditure is recognised in the period in which eligible activity creates an entitlement in line with the terms and conditions of the grant. Future commitments at the SOFP date are disclosed in Note 18.

1.12 Taxation

The core department and its agencies are exempt from corporation tax by way of Crown exemption. Some consolidated bodies are subject to corporation tax on taxable profits.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to HM Revenue and Customs, based on tax rates and laws that are enacted or substantively enacted by the reporting date.

Value-added tax (VAT) is accounted for in the accounts, in that the amounts are shown net of VAT except for irrecoverable VAT, which is aggregated with the cost of purchased items.

1.13 Foreign currency

Transactions denominated in a foreign currency are translated into sterling at the rate of exchange on the date of each transaction.

In preparing the financial statements, monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at the reporting date. All translation differences of monetary assets and liabilities are included in net expenditure for the year. Values are rounded to the nearest million pounds (£m) unless the FREM requires a lower threshold.

1.14 Property, Plant and Equipment (PPE)

Assets are capitalised as PPE if they are intended for use on a continuing basis and their original carrying value, on an individual or asset pool basis, exceeds the relevant capitalisation threshold which ranges from £500 to £10,000 across the departmental group.

Valuation of PPE

PPE is carried at fair value except for assets under construction which are held at cost. In accordance with the FREM, assets that have short useful lives or are of low value are carried at depreciated historical cost less impairment as a proxy for fair value.

Specialised assets (those for which a market value cannot be readily determined, due to the uniqueness arising from its specialised nature and design) are valued on a depreciated replacement cost basis or using appropriate indices in line with the FREM. Specialised land and buildings are measured at depreciated replacement cost which represents the cost of replacing the present value of the asset’s remaining service potential.

Non-specialised assets are measured at market value in existing use.

Revaluation of PPE

Any accumulated depreciation at the date of revaluation is eliminated and the resulting net book value restated to equal the revalued amount. Any revaluation increase arising is credited to the revaluation reserve except to the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is credited to net expenditure for the year to the extent of the decrease previously charged.

A decrease in carrying amount arising on revaluation is charged as an expense to the extent that it exceeds the balance, if any, held in the revaluation reserve relating to a previous revaluation of that asset.

On derecognition, any revaluation surplus remaining in the revaluation reserve attributable to the asset is transferred directly to the general fund.

Land, buildings, Polar research stations, ships and aircraft are professionally revalued every five years and in the intervening period relevant indices are used. Indexation is not applied to assets under construction. See note 6 for further details.

Estimated useful lives

PPE assets are depreciated to estimated residual values. This is done on a straight-line basis over their estimated useful lives, given in the table below. Residual values and useful lives are reviewed and adjusted if appropriate at each reporting date. Freehold and long leasehold land are not depreciated. Assets under construction are not depreciated until available for use as intended by management.

PPE asset	Estimated useful life
Freehold buildings	10 – 60 years
Leasehold improvements	Shorter of remaining useful life or outstanding term of lease
Computer equipment	2 – 10 years
Plant and machinery	3 – 50 years
Office machinery (included in plant and machinery), furniture, fixtures and fittings	2 – 11 years
Transport equipment	2 – 14 years

1.15 Intangible non-current assets

Intangible non-current assets are capitalised if they are intended for use on a continuing basis and their original carrying value, on an individual or asset pool basis, exceeds the relevant capitalisation threshold, which ranges from £500 to £10,000 across the departmental group.

There are no active markets for the majority of the departmental group’s intangible non-current assets which are valued at the lower of depreciated replacement cost and value in use using a valuation technique (for example for income-generating assets); where there is no value in use, depreciated replacement cost is used. Where there is an active market, the valuation is derived from the active market.

Assets of low value or with short useful lives are carried at cost less accumulated amortisation and impairment losses as a proxy for fair value. They are amortised on a straight-line basis over the following periods:

Intangible non-current asset	Estimated useful life
Software licences	3 – 10 years
Internally developed software	Up to 10 years
Website development costs	2 – 5 years
Patents, licences and royalties	7 – 15 years
Assets under construction	Not amortised until available for use as intended by management

1.16 Impairment of PPE and intangible non-current assets

The departmental group reviews carrying amounts at each reporting date. If an indicator for impairment occurs, then the recoverable amount of the asset (the higher of fair value less costs to sell and value in use) is estimated and an impairment loss recognised to the extent that it is lower than the carrying amount.

Losses arising from a clear consumption of economic benefit are charged to net expenditure for the year.

Losses that do not result from a loss of economic value or service potential are taken to the revaluation reserve, to the extent that a revaluation reserve exists for the impaired asset; otherwise, to net expenditure for the year.

1.17 Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and other short term highly liquid investments which are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value and have an original maturity of three months or less. Any bank overdraft amounts are included within trade payables and other liabilities.

1.18 Leases

Interpretations and adaptations

The group applies IFRS 16 as adapted and interpreted for the public sector by the FREM. Please refer to the FREM for details of the adaptations and interpretations.

Measurement of right-of-use assets

Initial measurement

The group measures the right-of-use asset at cost. This comprises the initial measurement of the lease liability, adjusted for any prior lease payments made, lease incentives received, initial direct costs incurred and estimated costs for removing and dismantling the asset and restoring the site, in accordance with lease terms and conditions.

Subsequent measurement

Right-of-use assets are subsequently measured in line with the class of PPE asset to which the lease relates. The cost model for IFRS 16 is used as a proxy for valuation except where:

A longer-term contract has no provisions to assess lease payments for market conditions
There is a significant period of time between these assessments
The valuation of the underlying asset is likely to fluctuate significantly due to changes in market prices.

Depreciation of right-of-use assets

Right-of-use assets are depreciated on a straight-line basis from commencement date to the earlier of the end of the asset’s useful life or its lease term.

Impairment of right-of-use assets

The departmental group applies IAS 36 ‘Impairment of Assets’ to determine whether a right-of-use asset is impaired and to account for any impairment loss identified.

Measurement of lease liabilities

Initial measurement

At the commencement date, the departmental group measures the lease liability at the present value of the lease payments that are not paid at that date. This includes fixed payments (adjusted for any lease incentives received), variable lease payments which depend on an index or rate, and amounts expected to be payable under a residual value guarantee. It also includes the exercise price of any purchase options the group is reasonably certain to exercise, along with payment of lease termination penalties where the group is reasonably certain to terminate the lease and this is reflected in the lease term recognised.

Lease payments are discounted using the HM Treasury discount rate, except in cases where the interest rate implicit in the lease can be readily determined (in which case this is used) or cases where another discount rate is judged to more accurately represent the interest rate.

The HM Treasury discount rate is:

4.72% for leases that commence or are remeasured between 1 January 2024 to 31 December 2024
4.81% between 1 January 2025 and 31 March 2025

Subsequent measurement

The lease liability is remeasured to reflect changes to the lease payments. The departmental group remeasures the lease liability by discounting the revised lease payments using a revised discount rate if there is a change in the lease term, our assessment of an option to purchase the underlying asset, amounts expected to be payable under a residual value guarantee, or future lease payments resulting from a change in the index or rate used to determine these.

The amount of remeasurement of the lease liability is recognised as an adjustment to the right-of-use asset, or in the SOCNE where there is a downward remeasurement to a right of use asset valued at £nil.

1.19 Subsidiaries, associates and joint ventures

Subsidiaries and public sector joint ventures are consolidated where designated within the departmental group boundary (note 24).

Those subsidiaries, joint ventures and associates that are outside of the departmental group boundary are measured in accordance with IFRS 9 ‘Financial Instruments’ or IAS 28 ‘Investments in Associates and Joint Ventures’ as relevant.

The financial asset is recognised when the departmental group becomes party to the contractual provisions of the instrument. Equity investments in associates or joint ventures outside the public sector are initially recorded at cost post-acquisition plus the department’s share of net assets and subsequently adjusted to reflect the departmental group’s share of net profit or loss and other comprehensive income of the associate or joint venture.

In line with IAS 28, an impairment assessment is also performed at year end to determine if there is objective evidence that a loss event has occurred. Any impairments will reduce the carrying amount of the net investment and be recognised as an impairment cost in the SOCNE occurred.

1.20 Financial instruments

Financial assets and liabilities are measured initially at fair value plus transaction costs, unless measured at fair value through profit or loss in which case transaction costs are charged to net expenditure for the year. Fair value is determined by reference to quoted prices where an active market exists for the instrument; otherwise, it is determined using generally accepted valuation techniques including discounted estimated cashflows.

Financial assets

Classification and measurement of financial assets

The classification of financial assets under IFRS 9 is based on the business model in which a financial asset is managed and its contractual cashflow characteristics. Derivatives embedded in contracts where the host is a financial asset in scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.

Held at Amortised Cost

These are financial assets whose contractual cashflows are solely payments of principal and interest and the objective of the business model is to hold financial assets to collect contractual cashflows only. They are initially recognised at fair value and thereafter at amortised cost using the effective interest method less any impairment. These mainly comprise: cash and cash equivalents, trade receivables (arising from a contractual arrangement) and loans to public sector bodies, including the core department’s loans to the Met Office.

Held at Fair Value Through Other Comprehensive Income (FVOCI)

After initial recognition, these assets are subsequently measured at fair value. Gains and losses in fair value are recognised directly in equity. On derecognition, the cumulative gain or loss previously recognised in equity is recognised in net expenditure for the year for debt instruments and transferred to general fund for equity instruments.

These comprise of equity investments in public sector companies that are neither held for trading nor contingent consideration recognised in a business combination, as the departmental group made an irrevocable election at initial recognition.

Held at Fair Value through Profit or Loss (FVPL)

All financial assets which do not meet the criteria for classification to be recognised and measured at amortised cost or FVOCI are recognised and measured at Fair Value Through Profit or Loss (FVPL). Transaction costs and any subsequent movements in the valuation of the asset are recognised in net expenditure for the year. These comprise mainly of private sector shares and investment funds.

Impairment of financial assets

Financial assets, other than equity instruments and those at FVPL, are assessed for impairment at each reporting date using the expected credit loss (ECL) model. The three-stage model based on the level of credit risk is applied to any financial assets other than long term trade receivables, contract assets which do not contain a significant financing component and lease receivables within the scope of IFRS 16 ‘Leases’ as follows:

For financial assets with low credit risk or assets that have not had a significant increase in credit risk since initial recognition, 12-month ECL are recognised and interest revenue is calculated on the gross carrying amount of the asset without the reduction of credit allowance.
For financial assets that have had a significant increase in credit risk since initial recognition but that do not have objective evidence of impairment, lifetime ECL are recognised, and interest revenue is calculated on the gross carrying amount of the asset.
For financial assets that have objective evidence of impairment at the reporting date, lifetime ECL are recognised, and interest revenue is calculated on the net carrying amount net of credit allowance.

Impairment gains or losses, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised in accordance with the standard, are recognised in profit or loss.

For long-term trade receivables, contract assets which do not contain a significant financing component and lease receivables within the scope of IFRS 16 ‘Leases’, the simplified approach is applied and lifetime ECL are recognised as dictated by the FREM.

The impairment methodology is detailed in the financial instruments note 19.

Derecognition of financial assets

Financial assets are derecognised when the rights to receive future cashflows have expired or are transferred and the risks and rewards of ownership have been substantially transferred.

Financial liabilities

Classification and measurement of financial liabilities

The departmental group’s financial liabilities excluding derivatives and some financial guarantees are initially recognised at fair value including directly attributable transaction costs. They are subsequently measured at amortised cost using the effective interest rate method, except for:

Financial liabilities at fair value through profit or loss, which is applied to derivatives and other financial liabilities designated as such at initial recognition.
Financial liabilities arising from the transfer of financial assets which do not qualify for derecognition and financial guarantee contracts and loan commitments whereby a financial liability is recognised for the consideration received for the transfer.

Derecognition of financial liabilities

Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.

Derivative financial instruments

These are treated in accordance with note 1.21 below.

1.21 Hedge accounting under IFRS 9 Financial Instruments

Derivative financial instruments comprise forward exchange contracts held to hedge the departmental group’s exposure to foreign currency risk. They are designated as cash flow hedges. The effective portion of change in the fair value is recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the SOCNE. Amounts accumulated in equity are recycled to the SOCNE in the periods when the hedged item affects the SOCNE.

Financial instruments held to hedge foreign currency risk exposures are designated as cash flow hedges if the criteria for applying cash flow hedge accounting under IFRS 9 are met. If the criteria are not met, such as when a forecast transaction is no longer expected to occur, the forward contract is accounted for as a financial instrument held for trading purposes and any cumulative gain or loss that was reported in taxpayer’s equity is immediately transferred to the SOCNE.

The departmental group does not hold or issue derivative financial instruments for trading purposes.

1.22 Pensions

Funded defined-benefit pension schemes

The departmental group has three funded defined-benefit pension schemes, the Medical Research Council pension scheme and two for Ofcom.

The net assets/liabilities recognised in the SOFP for funded defined benefit schemes are calculated by independent actuaries by deducting the fair value of scheme assets from the present value of defined benefit obligations (estimated using the projected unit credit method, less any amounts receivable from third parties). Where the scheme is in surplus, the asset recognised in these statements is limited to the present value of benefits available from future refunds from the plan, reductions in future contributions to the plan or on settlement of the plan and takes into account the adverse effect of any minimum funding requirements. Actuarial gains and losses are recognised as other comprehensive net income and expenditure.

Unfunded defined benefit pension schemes

The departmental group contributes towards a number of unfunded defined benefit pension schemes of which employees are members: these include the Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS). The participating employers in these schemes are unable to identify their share of the underlying net liability; as such these schemes are accounted for as defined contribution pension schemes, with employers’ contributions charged to the SOCNE in the period to which they relate. Further information regarding PCSPS and CSOPS is presented in the staff report.

Defined contribution pension schemes

Contributions are charged to the SOCNE when they become payable. The departmental group has no further liabilities in respect of benefits to be paid to members.

More information about the departmental group’s pension schemes can be found in the accounts of the consolidated entities, including in note 3 for the core department and of the pension schemes themselves in note 17.

1.23 Provisions

A provision is recognised when it is probable that an outflow of economic benefits will be required to settle a present obligation (legal or constructive) that can be reliably measured, and which results from a past event. Where the time value of money is material, the provision is measured at present value using discount rates prescribed by HM Treasury. HM Treasury issues nominal rates that do not take account of inflation, unlike real rates. Using these nominal rates, the cashflows are inflated using the inflation rates provided by HM Treasury except where a more appropriate forecast has been identified for specific provisions. Please refer to note 16 ‘Provisions for liabilities and charges’ for a table of discount rates used for 2024–25 and 2023–24.

1.24 Contingent assets and liabilities

Contingent liabilities

Where an outflow of economic benefits from a past event is possible but not probable, the departmental group discloses a contingent liability. In addition to contingent liabilities disclosed in these financial statements in accordance with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, certain statutory and non-statutory contingent liabilities where the likelihood of a transfer of economic benefit is remote are disclosed in the accountability report for parliamentary reporting and accountability purposes. Remote contingent liabilities reported in the accountability report are stated at the amounts reported to Parliament.

Contingent assets

Where an inflow of economic benefits from a past event is probable, the departmental group discloses a contingent asset.

Estimates of the financial effects are disclosed where practicable; where the time value of money is material, contingent liabilities and assets are stated at discounted amounts and the amount reported to Parliament separately noted.

1.25 Third party assets

The departmental group holds certain cash balances belonging to third parties as custodian or trustee. These balances are not recognised in the financial statements since neither the departmental group nor government more generally has a direct beneficial interest in them.

1.26 Significant judgements

Significant judgements in the 2024–25 DSIT ARA

A number of judgements have been made around the machinery of government changes, valuation of PPE, useful lives of non-current assets and depreciation rates.

Machinery of government changes (notes 1.5 and 23)

A number of judgements have been made around the machinery of government changes reflected in these accounts.

PPE (notes 1.14 and 6)

A number of judgements have been made around the valuation of PPE, useful economic lives, indices used and depreciation rates.

Grant accruals and prepayments within UKRI (note 14)

Financial statements include a grant accrual for each project (including fellowships, studentships and grants) where it has been determined that there is an unclaimed amount at the year end that is due to participants.

Given the nature of this estimate and the history of recipients not spending, and therefore not being reimbursed for, their full entitlement, an expected future underspend percentage is calculated based on historic data of underspend against payment profile and applied to the year-end balance.

A no-cost extension (NCE) arises when a grant recipient moves the end-date of a research or fellowship grant into the future without changing the value of the grant. In prior years NCEs were modelled off system, and a prepayment journal was applied to the year-end balances ensuring grant spend was reflective of the current financial year. The process was updated in 2023–24 and NCE’s are managed locally with payment profiles being adjusted as required within the system.

Research and Fellowship grants with cash limits above £0.2 million have their payment profile reprofiled via the grant system. Where grants have a cash limit of more than £3 million an Interim Expenditure Statement will be requested and will inform the new profile.

Decommissioning provisions within UKRI (note 16)

Calculation of the decommissioning costs for specialist facilities constitutes a significant accounting estimate. External experts give insight into the current cost of the work to be undertaken and assumptions regarding inflation rates. Management translates these costs into a provision using knowledge of the timing of the decommissioning and the profiling of the expenditure. To reduce the risk of material misstatement, the estimates and assumptions are reviewed annually.

UKRI has recognised a decommissioning provision of £29.3 million for the ISIS facility at RAL. In determining the fair value of the provision, assumptions and estimates are made in relation to discount rates, the expected cost to dismantle and remove the plant from the site, radioactive waste disposal and clean-up costs and the expected timing of those costs. ISIS is forecast to be decommissioned over 45 years, commencing in 2040–41. The decommissioning costs are estimated to total £200 million at current prices. The decommissioning provision for ISIS is sensitive to changes in inflation/discount rates that are provided by HM Treasury. This year, the long-term discount rate (11–40 years) increased from 4.72% to 4.81%, and the very-long-term rate (> 40 years) increased from 4.4% to 4.55%, the inflation rate staying the same at 2%. The ISIS decommissioning provision decreased by £0.6 million due to the change in discount rates (last year the movement due to discount rate changes was a decrease of £13.5 million).

UKRI has recognised a provision of £108.8 million for its share of the decommissioning costs of the Institut Laue Langevin (ILL); this has been taken to be its share of the ILL decommissioning provision recognised in the ILL latest accounts. The calculation by the ILL assumes that the ILL will shut down in 2030 and decommissioning will be completed in 2057. The main sources of uncertainty are associated with future developments in waste processing and site rehabilitation technology, and with nuclear and conventional safety constraints and environmental requirements. The value of the UKRI provision will also be affected by the EUR to GBP exchange rate.

Recognition of research grants and fellowships expenditure and payment profiles (note 4.3)

Where research grant and fellowship grant payment profiles are linear and a grant is not subject to NCE, UKRI judges that there is an alignment between the payment profile, the underlying activity it supports, and costs incurred by grant recipients. UKRI makes this judgement because the majority of costs incurred by grant recipients are similarly linear (for example, direct costs of employing researchers, overheads associated with a grant), and therefore sufficiently aligned with the payment profile of the grant such that it is the most reasonable and appropriate basis for recognising expenditure. This judgement means that UKRI therefore recognises expenditure on individual research grants and fellowships when payment is made, except where final payment is withheld awaiting a final statement of expenditure from a grant recipient.

Based on historic funding assurance sampling, in the absence of more granular data, UKRI has made a significant assumption that some, 4.5%, is evenly profiled. This assumption is required due to some cost categories potentially following a more variable profile at points during the life of a project. For example, a cost category that may follow a more variable profile would be that of an equipment grant which may be spent at fixed points in a project rather than spread throughout the whole life of the grant. Historic sampling shows on average this type of expenditure equates to 4.5% during a financial year, however as the main grant expenditure types show a consistent even profile and is most of the grant spend UKRI recognises a linear profile. Other alternative profiling has not been considered due to impracticability and the current straight-line policy output being a true and fair reflection of the economic activity being undertaken. The reprofiling of grants on system, as referenced above, also ensures expenditure is captured as incurred and recognised in the appropriate accounting period.

Innovate UK grant accrual (note 14)

The grant accrual is based on participants’ forecast of expenditure submitted with their latest claim. For a number of large non-core projects, the Knowledge Transfer Network (KTN) and Catapult Centres, Innovate UK (IUK) contacts the participants directly to obtain further information and assurances on claims due at the year-end date. For those grants that are based on procurements, IUK confirms the accruals based on purchase orders raised for the period. The major sources of uncertainty in the estimate relate to the profiling of incurring and defraying the project costs that create the entitlement to the grant, and the amount of the grant not utilised at the end of the project. The projects funded by IUK are typically collaborations between private businesses and academia; this aspect introduces a degree of interdependency between project partners that may impact on the timing of individual work packages. In addition, projects are typically two to five years long, which permits a degree of flexibility for grant recipients in the scheduling of their project activity. These projects seek to develop new technology-based products and services for future markets and, as such, are inherently uncertain in terms of their success and, related to this, the project duration and activity costs ultimately incurred.

Funded pension scheme (note 17)

The determination of the pension cost and defined benefit obligation (liabilities) of the Medical Research Council and Ofcom Pension Schemes depends on the selection of certain assumptions, which include the discount rate, inflation rate, salary growth, mortality rates and expected rate of return. The pension assets include property investments and unquoted equity investments, which are estimates based on fund manager valuation reports, and valued by the expert valuation reports as at 31 March 2025.

Horizon and Copernicus programmes (note 18)

The department made contribution payments for the Horizon and Copernicus programmes during 2024–25 and several judgements have been made around the accounting treatment for these costs.

The contributions that the department pays through our associate membership are providing UK entities with the right to participate in these programmes and the benefits to the UK research sector will accrue over the lifetime of participation. We have therefore concluded that the department’s obligation to these programmes accrue over the life of the programmes, as opposed to recognising the total cost at its commencement.

Both the participation fee and operational contribution for each annual work programme will be accounted for by accruing the annual cost evenly over the calendar year and recognising corresponding accruals or prepayments on the SOFP, depending on the timing of payments. The annual cost is determined by the annual charge issued by the European Commission.

An estimate of the future commitments payable under both programmes has been disclosed within the Other Financial Commitments note (note 18).

Impairment of Assets (notes 6, 8, 9, 10, 11, 12 and 19)

Impairment of financial assets is measured using the expected credit loss model (note 1.20). Impairment of non-financial assets is measured by comparing the carrying value of the asset or cash generating unit with management’s estimate of its recoverable amount.

Fair value of private equity investments (note 10)

A range of valuation techniques are used for private equity investments, including discounted cash flows and net asset values.

2. Reporting by operating segment

In accordance with the relevant reporting requirements, including IFRS 8 ‘Operating Segments’, the Statement of Outturn against Parliamentary Supply (SOPS) and supporting notes reflect net resource and capital outturn in line with the control totals voted by Parliament.

The figures within SOPS 1.1 provide the income and expenditure totals associated with key business activities within the DSIT group and therefore reflect the management information reporting to the board during the period.

3. Staff costs

	2024–25 Permanent employed staff £m	2024–25 Others £m	2024–25 Total £m	2023–24 restated Total £m
Wages and salaries	853	93	946	892
Social security costs	99	-	99	87
Other pension costs	207	-	207	181
Sub total	1,159	93	1,252	1,160
Less recoveries in respect of outward secondments	(1)	-	(1)	(1)
Total net costs	1,158	93	1,251	1,159
Of the total: Core dept and agencies	278	37	315	290
Of the total: NDPBs and other designated bodies	880	56	936	869
Total net costs	1,158	93	1,251	1,159

Notes

See the staff report and remuneration report for further information on staff costs and numbers.

4. Operating expenditure

4.1 Purchase of goods and services

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 restated Core dept & agencies £m	2023–24 restated DSIT group £m
Accommodation and office equipment costs	49	208	29	174
Legal, professional and consultancy costs	139	238	135	249
Finance, HR, IT and support costs	129	234	124	221
Travel and subsistence costs	8	38	6	36
Advertising and publicity	3	22	6	22
International subscriptions	370	732	485	792
Donations	-	35	-	29
Purchase of geographical and scientific equipment	118	161	80	116
Purchase of weather information and weather related services	168	168	137	137
Public Sector Geospatial Agreement	138	136	130	130
Horizon Europe and Copernicus programmes	1,635	1,593	529	529
Payment of taxes and levies	-	22	-	-
Other purchase of goods and services cost	114	197	119	214
Total	2,871	3,784	1,780	2,649

Core department

Included in the ‘Horizon Europe and Copernicus programmes’ heading is £1,510 million (2023–24: £498 million) relating to the department’s participation in the Horizon Europe programme and £125 million (2023–24: £31 million) for our participation in the Copernicus programme. The increased expense compared to the previous year is due to 2024–25 being the first full year of participation in the programmes.

DSIT group

International subscriptions include £370 million (2023–24: £482 million) paid to the European Space Agency by UKSA, and £319 million (2023–24: £310 million) for international subscriptions paid by UKRI.

Table: Audit fees

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 Core dept & agencies £m	2023–24 DSIT group £m
NAO audit fees	1	2	1	2
Total audit fees	1	2	1	2

Core department

The core department and agencies balance include £577,000 (2023–24: £565,000) relating to statutory NAO audit fees for the core department.

DSIT group

The largest costs related to statutory fees for NAO audit work, at £2,020,500 (2023–24: £1,816,658).

4.2 Depreciation and Impairment

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 Core dept & agencies £m	2023–24 DSIT group £m
Depreciation	40	287	32	296
Amortisation	20	46	21	46
Impairment of property, plant and equipment	-	-	-	22
Impairment of investments and remeasurement of expected credit losses	1	27	-	14
Total	61	360	53	378

DSIT group

The majority of the £287 million group depreciation figure (2023–24: £296 million) relates to bodies within the UKRI group, with the three largest values relating to the Science and Technology Facilities Council (STFC), the Natural Environment Research Council (NERC) and Diamond Light Source (DLS).

4.3 Grants expenditure

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 Core dept & agencies £m	2023–24 DSIT group £m
Grant in Aid	9,753	-	10,301	-
Science and Research, of which:	890	9,953	569	8,927
Research England	-	2,836	-	2,725
Innovate UK	-	2,020	-	1,726
Engineering and Physical Sciences Research Council	-	1,629	-	1,527
Medical Research Council	-	890	-	879
Biotechnology and Biological Sciences Research Council	-	525	-	480
Science and Technology Facilities Council	-	527	-	396
Natural Environment Research Council	-	335	-	330
Economic and Social Research Council	-	276	-	267
Arts and Humanities Research Council	-	163	-	140
Other science and research	890	752	569	457
Innovation Programmes, of which:	332	338	109	113
BDUK capital grants	269	269	64	64
Other innovation programmes	63	69	45	49
Other grants	28	21	16	13
Green Future Fellowships Endowment	-	-	150	150
Faraday Discovery Fellowships Endowment	-	-	250	250
Total	11,003	10,312	11,395	9,453

Core department

In 2024–25, included within the ‘science and research’ heading is:

£120 million (2023–24: £112 million) of grant funding provided directly to the Research Councils Pension Scheme (RCPS). These grant payments are classified as current grant expenditure rather than grant-in-aid as RCPS is not an ALB of DSIT and they are not consolidated into the DSIT group accounts.
£112 million (2023–24: £110 million) of core grant funding provided to the Royal Society.
£101 million (2023–24: £47 million) of grant funding provided to the Met Office to deliver the Supercomputing 2020+ programme.

In 2023–24, also included within the heading ‘science and research’ was £124 million of refunds of grant expenditure from previous years in relation to clawback of funding provided to Innovate UK on completion of the sale of the Vaccines Manufacturing and Innovation Centre. There was no such refund in 2024–25.

Fellowship endowments: In 2023–24, the core department provided a £150 million endowment to the Royal Academy of Engineering to launch and deliver the Green Future Fellowships scheme and a £250 million endowment to the Royal Society to launch and deliver the Faraday Discovery Fellowships scheme. There was no Green Future Fellowships endowment or Faraday Discovery Fellowships endowment provided in 2024–25.

Grant in aid

Grant in aid is paid to the following DSIT ALBs:

Advanced Research and Invention Agency
Information Commissioners Office
British Technology Investments Ltd
UK Research and Innovation

The majority of the decrease in grant in aid from the prior year is due to UKRI, whose grant in aid has decreased from £10,268 million in 2023–24 to £9,688 million in 2024–25.

DSIT group

Science and research grants provided by UKRI relate to funding and support across a wide range of academic disciplines and industrial areas and they are mainly paid to eligible research organisations in the UK.

Science and research grant expenditure has increased by £1,026 million. This is mainly due to entities in the UKRI group, including IUK’s additional spend of £294 million under the following programmes: Technologies Mission Fund – AI; Future Economy Review Health and Life Science; Future Economy Review Net Zero; and Co-funding Manufacturing, Materials & Mobility. There has also been additional funding in other science and research of £295 million, primarily due to the following programmes: Met Office – Supercomputer; British Academy International Science Partnership Fund; and British Council International Science Partnership Fund. The other significant contributors to the increase in science and research grants are STFC (£131 million) and Research England (£111 million), mainly due to: AI Research Resource; Infrastructure Fund – Wave 1-Full project-Diamond-II; and QR Research (Science – R & D).

Innovation programme grants increased by £225 million. This is predominantly attributable to the increase in capital grants of £205 million that BDUK awarded relating to: Project Gigabit; Shared Rural Network; and Superfast Broadband.

5. Income

5.1 Operating income

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 restated Core dept & agencies £m	2023–24 restated DSIT group £m
Fees, charges and recharges to/from external customers and central government organisations	58	345	49	273
Income from other government departments and public sector	9	665	5	491
Sales of goods and services	4	47	3	42
European Union funding	-	5	-	10
Current grants and capital grants	50	213	55	182
Miscellaneous income	17	72	2	70
Other operating income	-	29	-	26
Total	138	1,376	114	1,094

Core department and agencies

£48 million of operating income for the core department relates to research and development grant income received from the Department for Education.

DSIT group

Fees, charges and recharges to/from external customers and central government organisations for group entities of £345 million (2023–24: £273 million) is primarily due to Office of Communications, which charged £184 million during the year (2023–24: £164 million), and the Information Commissioner’s Office, which had income from fees, charges and recoveries of £75 million (2023–24: £70 million).

Income from other government departments and public sector is primarily driven by IUK income of £656 million (2023–24: £486 million). This includes £148 million income for Co-Funding Manufacturing, Materials & Mobility (2023–24: £54 million) and £171 million income for the Centre for Aerodynamics managed programme (2023–24: £166 million).

5.2 Finance income

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 Core dept & agencies £m	2023–24 DSIT group £m
Effective Interest – amortised cost assets	-	-	1	1
Interest income – FVPL assets	-	3	-	3
Interest income – amortised cost assets	8	20	7	16
Dividend income – FVPL assets held at period end	-	14	-	13
Dividend income – FVOCI (investments in joint ventures, associates and public dividend capital)	25	25	73	73
Total	33	62	81	106

Core department and agencies

In 2024–25 the core department recognised dividend income of £25 million (2023–24: £73 million). This includes £5.7 million of dividends from Ordnance Survey (2023–24: £56.9 million), £8.5 million from the Met Office (2023–24: £8.5 million) and £10.3 million from the Intellectual Property Office (2023–24: £8.1 million). These entities are sponsored by the core department but are outside of the departmental group accounting boundary.

DSIT group

In addition to the £25million dividend income recognised by the core department, the group recognised a further £14 million of dividend income, relating to investment income of the NESTA Trust.

6. Property, plant, and equipment

Table: 2024–25, DSIT group, property, plant, and equipment

		Land £m	Buildings £m	Information technology £m	Plant, machinery, furniture and fittings £m	Transport equipment £m	Assets under construction £m	Total £m
Cost or valuation	Opening balance at 1 Apr 2024	268	3,028	259	2,742	501	616	7,414
Cost or valuation	Additions	-	15	24	43	5	217	304
Cost or valuation	Disposals	-	(2)	(21)	(71)	(1)	-	(95)
Cost or valuation	Transfers	-	-	(2)	-	-	(5)	(7)
Cost or valuation	Reclassifications	-	153	23	94	1	(271)	-
Cost or valuation	Revaluations	4	49	3	(132)	4	-	(72)
Cost or valuation	Closing balance at 31 Mar 2025	272	3,243	286	2,676	510	557	7,544
Depreciation	Opening balance at 1 Apr 2024	-	(1,214)	(151)	(1,871)	(198)	-	(3,434)
Depreciation	Charged in year	-	(74)	(48)	(119)	(24)	-	(265)
Depreciation	Disposals	-	3	21	71	1	-	96
Depreciation	Transfers	-	1	-	(1)	-	-	-
Depreciation	Revaluations	-	(13)	(1)	99	(2)	-	83
Depreciation	Closing balance at 31 Mar 2025	-	(1,297)	(179)	(1,821)	(223)	-	(3,520)
Carrying amount	Opening balance at 1 Apr 2024	268	1,814	108	871	303	616	3,980
Carrying amount	Closing balance at 31 Mar 2025	272	1,946	107	855	287	557	4,024
Asset financing	Owned	272	1,946	107	855	287	557	4,024
Carrying amount	Closing balance at 31 Mar 2025	272	1,946	107	855	287	557	4,024
Of the carrying amount	Core dept and agencies	32	176	36	62	-	32	338
Of the carrying amount	NDPBs and other designated bodies	240	1,770	71	793	287	525	3,686
Carrying amount	Closing balance at 31 Mar 2025	272	1,946	107	855	287	557	4,024

Table: 2023–24 restated, DSIT group, property, plant and equipment

		Land £m	Buildings £m	Information technology £m	Plant, machinery, furniture and fittings £m	Transport equipment £m	Assets under construction £m	Total £m
Cost or valuation	Opening balance at 1 Apr 2023	232	2,953	225	2,612	452	595	7,069
Cost or valuation	Additions	-	15	39	35	7	221	317
Cost or valuation	Disposals	-	(9)	(24)	(70)	(1)	-	(104)
Cost or valuation	Impairments	3	(20)	-	(1)	-	(1)	(19)
Cost or valuation	Transfers	-	-	(1)	-	-	-	(1)
Cost or valuation	Reclassifications	-	116	21	62	-	(199)	-
Cost or valuation	Revaluations	33	(27)	(1)	104	43	-	152
Cost or valuation	Closing balance at 31 Mar 2024	268	3,028	259	2,742	501	616	7,414
Depreciation	Opening balance at 1 Apr 2023	-	(1,085)	(135)	(1,749)	(151)	-	(3,120)
Depreciation	Charged in year	-	(77)	(40)	(126)	(33)	-	(276)
Depreciation	Disposals	-	4	24	70	1	-	99
Depreciation	Revaluations	-	(56)	-	(66)	(15)	-	(137)
Depreciation	Closing balance at 31 Mar 2024	-	(1,214)	(151)	(1,871)	(198)	-	(3,434)
Carrying amount	Opening balance at 1 Apr 2023	232	1,868	90	863	301	595	3,949
Carrying amount	Closing balance at 31 Mar 2024	268	1,814	108	871	303	616	3,980
Asset financing	Owned	268	1,814	108	871	303	616	3,980
Carrying amount	Closing balance at 31 Mar 2024	268	1,814	108	871	303	616	3,980
Of the total	Core dept and agencies	32	170	33	57	-	50	342
Of the total	NDPBs and other designated bodies	236	1,644	75	814	303	566	3,638
Carrying amount	Closing balance at 31 Mar 2024	268	1,814	108	871	303	616	3,980

The professional valuations of land and buildings undertaken within the core department and the departmental group were prepared in accordance with the Royal Institute of Chartered Surveyors (RICS) Valuation Standards (6th Edition), the ‘Red Book’. Unless otherwise stated, land and buildings are professionally revalued every five years and where appropriate in the intervening period, relevant indices are used.

Core department

In the core department, land and buildings at the National Physical Laboratory were professionally valued during 2021–22 as at 31 March 2022 by CBRE LTD, Chartered Surveyors, an independent valuer.

DSIT group

The most significant land and buildings at 31 March 2025 were held by UKRI. UKRI’s (MRC and STFC) land and buildings (excluding STFC’s Rutherford Appleton Laboratory) were professionally revalued during 2023–24, as at 31 December 2023 by Carter Jonas LLP, Chartered Surveyors, an independent valuer.

UKRI’s (Natural Environment Research Council, NERC) research ships (RRS Sir David Attenborough, RRS Discovery, and RRS James Cook) were valued by Clarksons Valuations Limited during 2023–24, as at 31 October 2023. All NERC aircraft were revalued by the International Bureau of Aviation Group Limited in 2023–24 as at 2 November 2023.

STFC Land and buildings at the Rutherford Appleton Laboratory were professionally valued during 2022–23 as at 31 March 2023 by Avison Young Limited, Chartered Surveyors, an independent valuer.

NERC and EPSRC UK land and buildings were professionally revalued during 2021–22 as at 31 December 2021 by Carter Jonas LLP, Chartered Surveyors, an independent valuer. NERC’s Antarctic buildings were professionally revalued during 2021–22, as at 31 March 2021 by Powis Hughes Ltd, Chartered Surveyors, an independent valuer.

The former Biotechnology and Biological Sciences Research Council’s (BBSRC, part of UKRI) land and buildings were professionally revalued during 2020–21, as at 31 January 2021, by Avison Young Limited, Chartered Surveyors, an independent valuer.

Included in assets under construction are: STFC’s National Satellite Test Facility (NSTF); STFC’s National Quantum Computing Centre (NQCC); STFC’s ISIS Neutron and Muon Source; STFC’s Supercomputing Centre at Daresbury; the new aircraft for NERC’s British Antarctic Survey; the Antarctic Infrastructure Modernisation Programme and other Antarctic projects; and the Diamond Light Source (DLS) Diamond II investment project.

DLS property, plant and equipment are measured at depreciated historic cost in their accounts. The DLS building is the UK’s national synchrotron which is a specialised asset. In accordance with the FREM the synchrotron has been professionally revalued as at 31 March 2024 on a depreciated replacement cost (DRC) basis by a specialist valuer Carter Jonas. Indexation has also been applied to DLS plant and machinery assets.

Further information can be found in note 1.14 and the financial statements of the individual bodies’ accounts.

7. Right of use assets

Table: 2024–25, DSIT group, right of use assets

		Land £m	Buildings £m	Plant, machinery, transport and other £m	Total £m
Cost or valuation	at 1 Apr 2024	176	175	5	356
Cost or valuation	Additions	3	54	-	57
Cost or valuation	Disposals	-	(18)	-	(18)
Cost or valuation	Remeasurements	-	(2)	-	(2)
Cost or valuation	Transfers	-	3	-	3
Cost or valuation	Revaluations	4	3	-	7
Cost or valuation	at 31 Mar 2025	183	215	5	403
Depreciation	at 1 Apr 2024	(37)	(61)	(2)	(100)
Depreciation	Charged in year	(4)	(17)	(1)	(22)
Depreciation	Disposals	-	14	-	14
Depreciation	Transfers	-	(1)	-	(1)
Depreciation	Revaluations	(1)	(2)	-	(3)
Depreciation	at 31 Mar 2025	(42)	(67)	(3)	(112)
Carrying amount	at 31 Mar 2024	139	114	3	256
Carrying amount	at 31 Mar 2025	141	148	2	291
Of the total	Core dept and agencies	-	66	-	66
Of the total	NDPBs and other designated bodies	141	82	2	225
Carrying amount	at 31 Mar 2025	141	148	2	291

Table: 2023–24 restated, DSIT group, right of use assets

		Land £m	Buildings £m	Plant, machinery, transport and other £m	Total £m
Cost or valuation	at 1 Apr 2023	105	182	1	288
Cost or valuation	Additions	2	9	4	15
Cost or valuation	Disposals	-	(3)	-	(3)
Cost or valuation	Impairments	3	(6)	-	(3)
Cost or valuation	Remeasurements	-	2	-	2
Cost or valuation	Revaluations	66	(9)	-	57
Cost or valuation	at 31 Mar 2024	176	175	5	356
Depreciation	at 1 Apr 2023	(32)	(51)	(1)	(84)
Depreciation	Charged in year	(3)	(16)	(1)	(20)
Depreciation	Disposals	-	2	-	2
Depreciation	Revaluations	(2)	4	-	2
Depreciation	at 31 Mar 2024	(37)	(61)	(2)	(100)
Carrying amount	at 31 Mar 2023	73	131	-	204
Carrying amount	at 31 Mar 2024	139	114	3	256
Of the total	Core dept and agencies	(1)	24	-	23
Of the total	NDPBs and other designated bodies	140	90	3	233
Carrying amount	at 31 Mar 2024	139	114	3	256

DSIT group

Included in Buildings are UKRI’s office buildings and both specialised and non-specialised (for valuation purposes) scientific buildings. UKRI had revaluations of right-of-use assets relating to land in 2023–24, these did not result in any movement in related lease liabilities.

8. Intangible assets

Table: 2024–25, DSIT group, intangible assets

		Information technology £m	Software licences and other £m	Patents £m	Assets under construction £m	Total £m
Cost or valuation	at 1 Apr 2024	185	66	401	101	753
Cost or valuation	Additions	15	11	73	57	156
Cost or valuation	Disposals	(1)	(1)	-	-	(2)
Cost or valuation	Reclassifications	7	(2)	-	(5)	-
Cost or valuation	Transfers	3	-	-	-	3
Cost or valuation	Revaluations	-	-	11	-	11
Cost or valuation	at 31 Mar 2025	209	74	485	153	921
Amortisation	at 1 Apr 2024	(148)	(47)	(328)	-	(523)
Amortisation	Charged in year	(21)	(10)	(15)	-	(46)
Amortisation	Disposals	1	-	-	-	1
Amortisation	at 31 Mar 2025	(168)	(57)	(343)	-	(568)
Carrying amount	at 1 Apr 2024	37	19	73	101	230
Carrying amount	at 31 Mar 2025	41	17	142	153	353
Asset financing	Owned	41	17	142	153	353
Carrying amount	at 31 Mar 2025	41	17	142	153	353
Of the total	Core dept and agencies	28	5	-	147	180
Of the total	NDPBs and other designated bodies	13	12	142	6	173
Carrying amount	at 31 Mar 2025	41	17	142	153	353

Table: 2023–24 restated, DSIT group, intangible assets

		Information technology £m	Software licences and other £m	Patents £m	Assets under construction £m	Total £m
Cost or valuation	at 1 Apr 2023	164	130	392	76	762
Cost or valuation	Additions	10	2	-	43	55
Cost or valuation	Disposals	(8)	(68)	-	-	(76)
Cost or valuation	Reclassifications	16	2	-	(18)	-
Cost or valuation	Transfers in/(out)	2	-	-	-	2
Cost or valuation	Revaluations	1	-	9	-	10
Cost or valuation	at 31 Mar 2024	185	66	401	101	753
Amortisation	at 1 Apr 2023	(138)	(103)	(311)	-	(552)
Amortisation	Charged in year	(18)	(11)	(17)	-	(46)
Amortisation	Disposals	9	67	-	-	76
Amortisation	Revaluations	(1)	-	-	-	(1)
Amortisation	at 31 Mar 2024	(148)	(47)	(328)	-	(523)
Carrying amount	at 1 Apr 2023	26	27	81	76	210
Carrying amount	at 31 Mar 2024	37	19	73	101	230
Asset financing	Owned	37	19	73	101	230
Carrying amount	at 31 Mar 2024	37	19	73	101	230
Of the total	Core dept and agencies	22	14	-	99	135
Of the total	NDPBs and other designated bodies	15	5	73	2	95
Carrying amount	at 31 Mar 2024	37	19	73	101	230

Notes

All software licenses are acquired separately.
All information technology (IT) assets are internally generated. IT assets are initially classified as assets under construction and are not amortised until they are commissioned, at which time they are reclassified as IT.
Patent additions for the year relate to MRC, which is part of UKRI. For ALBs within UKRI, patents and royalties which are recognised as intangible assets are revalued annually by specialists on the basis of future royalty income streams.

9. Investments and loans in other public sector bodies

	Ordinary shares £m	Public dividend capital £m	Other investments and loans £m	Core dept and agencies total £m	Elimination of shares and other investments and loans held in NDPBs £m	NDPBs Ordinary Shares £m	DSIT group Total £m
Balance at 1 Apr 2023	229	65	263	557	(248)	224	533
Transfers in	-	-	(38)	(38)	-	-	(38)
Additions	-	-	37	37	(1)	-	36
Disposals	-	-	-	-	-	-	-
Redemptions	-	-	-	-	-	-	-
Interest capitalised				-	-	-	-
(Impairments)/Impairment reversal	(1)	-	-	(1)	1	-	-
Revaluations	(3)	-	-	(3)	3	(1)	(1)
Reclassification				-	-	-	-
Unwinding of discount	-	-	-	-	-	-	-
Loans repayable within 12 months transferred to current assets				-	-	-	-
Balance at 31 Mar 2024	225	65	262	552	(245)	223	530
Transfers in	-	-	(41)	(41)	-	-	(41)
Additions	-	-	32	32	-	-	32
Disposals	-	-	-	-	-	-	-
Redemptions	-	-	(24)	(24)	20	-	(4)
Interest capitalised	-	-	-	-	-		-
(Impairments)/Impairment reversal	(1)	-	-	(1)	1	-	-
Revaluations	(11)	-	-	(11)	11	(11)	(11)
Reclassification	-	-	-	-	-		-
Unwinding of discount	-	-	-	-	-	-	-
Loans repayable within 12 months transferred to current assets	-	-	-	-	-		-
Balance at 31 Mar 2025	213	65	229	507	(213)	212	506

9.1 Ordinary shares

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies £m	31 Mar 2024 DSIT group £m
Balance at 1 Apr	225	223	229	226
(Impairments)/Impairment reversal	(1)	-	(1)	-
Revaluations	(11)	(11)	(3)	(3)
Balance at 31 Mar	213	212	225	223
Of the balance: Ordinary shares held within the departmental boundary – held at cost	1	-	2	-
Of the balance: Ordinary shares held outside the departmental boundary – held at fair value	212	212	223	223
Balance at 31 Mar	213	212	225	223

Core department

Ordinary shares held in other public sector bodies within the departmental boundary

UK Shared Business Services Limited (UKSBS)

The core department through the Secretary of State (SoS) holds 62,016,358 non-voting shares and one voting share in UKSBS, held at cost less provision for impairment of £1 million at 31 March 2025 (31 March 2024: £2 million).
The company is a specialist business services organisation that provides finance, procurement, grants, information systems and HR and payroll services to the public sector. Its main objective is to improve the economy, efficiency and effectiveness of corporate services to bodies previously within the BEIS departmental group.

Ordinary shares held outside of the departmental boundary

Shares held outside the departmental boundary are carried at fair value through other comprehensive income.

Ordnance Survey Limited

The core department through the SoS holds 34,000,002 ordinary shares in Ordnance Survey Limited (OSL) at a nominal value of £1 each which is 100% of the issued share capital.
The shareholding is held at fair value, but as there is no active market for these shares the net asset value of OSL is considered to be a reasonable approximation for fair value. The fair value as at 31 March 2025 was £124 million (31 March 2024: £133 million).
The principal objective of OSL is to produce mapping products and mapping data information.

NPL Management Limited

The core department through the SoS holds 76 ordinary shares in NPL Management Limited (NPLML) which is 100% of the issued share capital.
NPLML has been set up to manage and operate the National Physical Laboratory.
The shareholding is held at fair value, but as there is no active market for these shares the net asset value of NPLML is considered to be a reasonable approximation for fair value. The fair value as at 31 March 2025 was £88 million (31 March 2024: £90 million).

9.2 Public dividend capital

	UK Intellectual Property Office £m	Met Office £m	Total £m
Balance at 1Apr 2023	6	59	65
Additions	-	-	-
Redemptions	-	-	-
Impairments	-	-	-
Balance at 31 Mar 2024	6	59	65
Additions	-	-	-
Redemptions	-	-	-
Impairments	-	-	-
Balance at 31 Mar 2025	6	59	65

Core department

PDC is held by the core department. PDC is carried at historical cost less any impairment.

9.2.1 Share of net assets and results for public dividend capital holdings outside the DSIT consolidation boundary

The department is required to disclose its share of the net assets and the results for the year of other public sector bodies, which are outside of the departmental boundary. The following disclosures relate to the department’s trading funds.

	UK Intellectual Property Office £m	Met Office £m
Net assets or (liabilities) at 31 Mar 2024	138	299
Turnover	155	270
Surplus/profit or (deficit/loss) for the year before financing	6	13
Net assets or (liabilities) at 31 Mar 2025	140	347
Turnover	162	298
Surplus/profit or (deficit/loss) for the year before financing	4	14

The information presented for the reporting year 2024–25 was derived from the draft unaudited accounts of the entities. The information for 2023–24 was derived from their audited accounts. The accounts were prepared on an IFRS basis, in accordance with the requirements of the FREM.

9.3 Other investments and loans

	2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 Core dept & agencies £m	2023–24 DSIT group £m
Balance at 1 Apr 2024	262	241	262	242
Transfers	(41)	(41)	(38)	(38)
Additions	32	32	38	37
Repayments	(24)	(3)	-	-
Balance at 31 Mar 2025	229	229	262	241

Core department

Met Office Loans

The core department’s loans with the Met Office fund UK membership of EUMETSAT. EUMETSAT is a non-EU international organisation, set up to develop, launch and monitor meteorological satellites which provide global data for weather forecasting.
The total carrying amount at 31 March 2025 is £224 million (31 March 2024: £233 million). Of this, the non-current element, reported in the table above, is £187 million (31 March 2024: £200 million). The current element, shown within the ‘investments and loans in public bodies’ line in the current assets section of the SOFP, is £37 million (31 March 2024: £33 million). The loans are reported at amortised cost under IFRS 9.
The loans are to a non-consolidated body and not eliminated on consolidation.

9.4 Special shares

The Secretary of State holds one special share in the entity listed below. A summary of the significant terms of the shareholding has been included. Further details can be obtained from the annual report and financial statements of the entity or their Articles of Association. The core department does not recognise the special or ‘golden’ shares on its SOFP.

Table: Special shares

Heading

Description

OneWeb Holdings Limited – $0.01USD Special Share

Incorporated in 2020. The Secretary of State for Science, Innovation and Technology has a Special ‘B’ Share. The written consent of the Special Shareholder is required for any of the following:
- any change in the nature or scope of the business of the group or any commencement of new activity outside its existing course of business
- any amendments to the company’s articles of association or any other governing and constitutional documents
- any change to the location of the group’s executive management team, headquarters or centre of operations
- any group member entering into, or amending, any contract, arrangement or relationship which may prejudice the group’s ability to enter into contracts, arrangements or relationships with certain parties
- any change to the technical and technology standards of any of the Group’s operations
- the sale by any group member of any product or service which is going to be used for a defence or national security application
- the entry by any group member into arrangements notifiable under a tax disclosure regime
- any change to the jurisdiction of tax residence
- any change to the corporate structure or activities of any group member which may impact the jurisdiction of tax residence or have a negative reputational impact arising from tax matters

10. Other financial assets

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies £m	31 Mar 2024 DSIT group £m
Balance at 1 Apr	13	587	15	569
Additions	31	213	-	73
Repayments	(2)	(157)	(3)	(41)
Unwinding of discount	-	-	1	1
Revaluations	1	(26)	-	(3)
Impairments	-	(11)	-	(12)
Balance at 31 Mar	43	606	13	587
Due within 12 months	2	2	2	2
Due after 12 months	41	604	11	585
Total	43	606	13	587

10.1 Other financial assets: Analysis

	Gilts and bonds £m	Private sector loans £m	Private sector shares £m	Investment funds £m	Total £m
Balance at 1 Apr 2023	2	166	84	317	569
Additions	-	27	23	23	73
Redemptions	-	(10)	(7)	(24)	(41)
Revaluations	-	(15)	3	9	(3)
Unwinding of discount	-	1	-	-	1
Impairments	-	(11)	(1)	-	(12)
Balance at 1 Apr 2024	2	158	102	325	587
Additions	-	64	10	139	213
Redemptions	-	(16)	(37)	(104)	(157)
Revaluations	-	(10)	(11)	(5)	(26)
Impairments	-	(11)	-	-	(11)
Balance at 31 Mar 2025	2	185	64	355	606
Of the total: Core dept and agencies	-	43	-	-	43
Of the total: NDPBs and other designated bodies	2	142	64	355	563
Balance at 31 Mar 2025	2	185	64	355	606

DSIT group

Private sector loans

UKRI have entered into loan agreements with parties within the private sector. The loans within the departmental group are carried at either amortised cost or fair value through profit or loss.

As at 31 March 2025, £142 million of loans were held by NDPBs and other designated bodies of which UKRI (STFC and IUKL) held £131 million (31 March 2024: £145 million; UKRI held £134 million).

Private sector shares

At 31 March 2025 £64 million of private sector shares were held by NDPBs and other designated bodies (31 March 2024: £102 million). These were held by NESTA Trust, BTI and UKRI. The majority of these are measured at ‘fair value through profit or loss’, with fair value movements going directly to the SOCNE.

The fair values are estimated based on a variety of valuation techniques, adopted by the investment managers that comply with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines or the valuation guidelines produced by the British Venture Capital Association (BVCA). Valuation techniques used include the use of earnings multiples, discounted cashflows analysis, and net asset values.

Investment funds

The value invested by NDPBs and other designated bodies at 31 March 2025 was £355 million (31 March 2024: £325 million) all held by NESTA Trust. In accordance with IFRS 9, the investments are measured at ‘fair value through profit or loss’ with fair value movements going directly to the SOCNE.

The carrying value of all investments is at market value except where we are unable to obtain a reliable estimate of market value. The market values of quoted investments are based on externally reported bid prices at the balance sheet date. Equity investments, high yield bonds, and property trusts are held in pooled funds and are stated at market value, being the market value of the underlying investments held. These valuations are provided by the relevant fund manager.

Private equity investments are held through funds managed by private equity managers. As there is no identifiable market price for private equity funds, these funds are included at the most recent valuations adjusted for any cash calls and distributions provided by the private equity managers.

11. Investments in joint ventures and associates

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies £m	31 Mar 2024 DSIT group £m
Balance at 1 Apr	225	845	324	818
Additions	-	-	243	243
Disposals	-	-	(286)	(286)
Profit/(loss)	(128)	(76)	(57)	(70)
Revaluations	-	3	1	140
Balance at 31 Mar	97	772	225	845

Core department: Eutelsat Group financial information

	2024–25 £m	2023–24 £m
Summarised
Current assets	1,068	1,273
Non-current assets	5,231	6,358
Current liabilities	(787)	(702)
Non-current liabilities	(2,981)	(3,343)
Revenue	1,012	496
Profit or (loss) from continuing activities	(1,176)	(164)
Other
Cash and cash equivalents	573	778
Current financial liabilities (excl trade and other payables and provisions)	(329)	(173)
Non-current financial liabilities (excl trade and other payables and provisions)	(2,442)	(2,878)
Finance costs and interest expense	(131)	(48)
Income tax expense or income	(3)	25

Eutelsat Communications group

In 2020–21 the core department made a £374 million equity investment in OneWeb Holdings Limited, which is an operator of cutting-edge satellites in the UK and in the US. This constituted 17.6% of the ordinary shares in circulation.

In July 2022, Eutelsat Communications Group and OneWeb’s leading shareholders signed a Memorandum of Understanding with a view to a business combination between the two companies via a share exchange transaction, aimed at creating a global leader in connectivity. The Extraordinary General Meeting of Eutelsat shareholders approved the combination on 28 September 2023, resulting in the successful completion of the transaction. Upon completion, DSIT took ownership of 10.89% of Eutelsat Group’s shares, which are listed on the Paris and London Stock Exchanges.

The core department continues to account for this investment as an associate using the equity method after concluding that the ‘significant influence’ criteria in IAS 28 (Investments in Associates and Joint Ventures) continues to be met. This is because HMG has representation on the Eutelsat board of directors and continues to hold a special share with protective rights in the OneWeb Holdings subsidiary. The value of the core department’s holding at 31 March 2025 is £96.6 million, reflecting the core department’s share of post-acquisition net loss of the associate. There were no dividends received from the associate in 2024–25.

Eutelsat Group’s financial statements are prepared in accordance with IFRS. The financial statements are prepared to 30 June and are presented in Euros. Eutelsat’s headquarters is located at 32 Boulevard Gallieni, 92130 Issy-les-Moulineaux, Paris.

The summarised financial information above has been compiled from:

Eutelsat Group’s consolidated financial statements as of 30 June 2024
Eutelsat Group’s condensed consolidated half year financial statements as of 31 December 2024

Figures from the SOFP in the 2024–25 financial information below are based on the unaudited half-year financial statements of Eutelsat Group, as at 31 December 2024, converted to GBP using the spot rate at 31 December 2024.

Figures from the SOCNE in the 2024–25 financial information below are calculated as the sum of the average monthly loss per the consolidated financial statements as of 30 June 2024, converted at the spot rate at 30 June 2024, for the three months from 1 April 2024 to 30 June 2024; the average monthly loss per the consolidated financial statements as of 31 December 2024, converted at the spot rate at 31 December 2024, for the six month period from 30 June 2024 to 31 December 2024; the average monthly loss per the consolidated financial statements as of 31 December 2024, converted at the spot rate at 31 March 2025, for the three month period from 31 December 2024 to 31 March 2025.

At the time of publication, consolidated financial statements for the period to 31 March 2025 were not available.

DSIT group: Crick financial information

	2024–25 £m	2023–24 £m
Summarised
Non-current assets	455	468
Current assets	191	164
Current liabilities	(91)	(79)
Revenue	231	217
Profit/(loss) from continuing activities	(10)	(4)
Other
Cash and cash equivalents	27	11
Depreciation and amortisation	(42)	(38)
Capital commitments	7	5

The Francis Crick Institute Limited

The Francis Crick Institute (the Crick) was established in 2010 to deliver a world class interdisciplinary biomedical research centre. UKRI holds 42% (31 March 2024: 42%) of the ordinary shares in the Crick. The remaining shares are held by Cancer Research UK, University College London, the Wellcome Trust, Kings College London and Imperial College of Science, Technology and Medicine. The department accounts for its investment in the Crick as a joint venture under the equity method. The value of the departmental group’s investment at 31 March 2025 is £463 million (31 March 2024: £456 million), reflecting the departmental group’s share of post-acquisition net profit or (loss) of the joint venture.
The revaluation of investment in the Crick relates to the adjustment required to account for differences in accounting policy between UKRI and the Crick. The adjustment is taken to the revaluation reserve. The Crick property was professionally revalued during 2023–24, as at 31 December 2023 by Carter Jonas LLP, Chartered Surveyors, an independent valuer.
The Crick’s financial statements are prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice’, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP 2nd Edition (FRS 102)). The financial statements are prepared to 31 March and presented in pounds sterling.
The principal place of business is Midland Road, London.

HSIC Holdings LP financial information

	2024–25 £m	2023–24 £m
Summarised
Non-current assets	535	369
Current assets	67	36
Current liabilities	(11)	(10)
Non-current liabilities	(279)	(182)
Profit/(loss) from continuing activities	99	(24)
Other
Cash and cash equivalents	30	6

The department consolidates HSIC Public Sector Limited Partnership (HSIC PubSP) into the accounts. HSIC PubSP has a 50% share in HSIC Holdings LP, a joint venture between HSIC PubSP and Harwell Oxford Developments Ltd. HSIC Holdings LP is the sole limited partner of HSIC LP, which manages and develops the Harwell Campus. The department accounts for its investment in HSIC Holdings LP as a joint venture under the equity method. The value of the departmental group’s investment at 31 March 2025 is £156 million (31 March 2024: £106 million) reflecting the departmental group’s share of post-acquisition net profit or (loss) of the joint venture.

Within non-current assets there is £535 million of investment properties (31 March 2024: £369 million). The investment properties have been valued at market value as at 31 March 2025 using information provided by Radice Chartered Surveyors, independent chartered surveyors. The valuation was carried out in accordance with the provisions of RICS definition of market value. The market value has been determined having regard to factors such as current and future projected income levels, taking account of location, quality of the building and recent market transactions in the sector. Changes in these assumptions such as the valuation basis applied in comparable market transactions, or the income level generated by the investment property could materially impact the valuation of the investment properties.

Other

There are other joint ventures and associates held by UKRI which are not material.

12. Trade and other receivables

		2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 restated Core dept & agencies £m	2023–24 restated DSIT group £m
Due within 1 year	Trade receivables	10	251	55	309
Due within 1 year	Other receivables	(2)	29	190	228
Due within 1 year	VAT and other taxation	16	16	26	26
Due within 1 year	Staff receivables	1	2	1	2
Due within 1 year	Contract assets	-	11	-	10
Due within 1 year	Consolidated fund receivable	25	25	2	2
Due within 1 year	Prepayments	169	401	600	887
Due within 1 year	Accrued income	98	610	36	382
Due within 1 year	Total	317	1,345	910	1,846
Due after 1 year	Trade receivables	(1)	3	-	1
Due after 1 year	Other receivables	1	7	-	5
Due after 1 year	Contract assets	-	5	-	5
Due after 1 year	Prepayments	351	351	1	(3)
Due after 1 year	Accrued income	-	2	-	1
Due after 1 year	Total	351	368	1	9
Receivables at 31 Mar	Total	668	1,713	911	1,855

Notes

Trade and other receivables have been restated as explained in note 23.

Core department

In 2024–25, Prepayments due after one year includes £351 million, (2023–24: nil) and prepayments due within one year includes £117m, (2023–24: £529 million) relating to the department’s participation in the Horizon Europe and Copernicus programmes, an overall decrease of £60m.

In 2023–24, Other Receivables due within one year included a £162 million receivable which has been settled between the relevant government departments in 2024–25.

DSIT group

In 2024–25, total trade and other receivables was valued at £1,713 million (2023–24: £1,855 million), a decrease of £142 million. The decline is largely due to reductions in department receivables as described above, partially offset by increases to other elements.

The main increase was to accrued income due within one year, valued at £610 million (2023–24: £382million). This was largely attributable to continued increases to IUK’s current accrued income, £483 million in 2024–25, (2023–24: £306 million). IUK invoice other government bodies for funded programmes.

13. Cash and cash equivalents

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies £m	31 Mar 2024 DSIT group £m
Balance at 1 Apr	1,652	2,449	402	654
Net change in cash and cash equivalent balances	17	(145)	1,250	1,795
Balance at 31 Mar	1,669	2,304	1,652	2,449
Held at: The Government Banking Service (GBS)	1,669	2,145	1,636	2,311
Held at: Commercial banks and cash in hand	-	159	16	124
Held at: Short term investments	-	-	-	14
Balance at 31 Mar	1,669	2,304	1,652	2,449

14. Trade payables, financial, and other liabilities

		2024–25 Core dept & agencies £m	2024–25 DSIT group £m	2023–24 restated Core dept & agencies £m	2023–24 restated DSIT group £m
Due within 1 year	VAT, social security and other taxation	7	27	3	16
Due within 1 year	Trade payables	112	169	53	148
Due within 1 year	Other payables	25	93	137	224
Due within 1 year	Contract liabilities	-	10	-	27
Due within 1 year	Other accruals	1,160	2,602	368	1,637
Due within 1 year	of which:
Due within 1 year	Grant accruals – Innovate UK	-	779	-	702
Due within 1 year	Grant accruals – Engineering and Physical Sciences Research Council	-	174	-	175
Due within 1 year	Grant accruals – Medical Research Council	-	105	-	123
Due within 1 year	Other grant accruals	26	150	4	67
Due within 1 year	Goods Received Not Invoiced (GRNI) Accruals	91	293	207	365
Due within 1 year	Accrued expenses: Horizon Europe & Copernicus	517	517	-	-
Due within 1 year	Accrued expenses: Other accrued expenses	520	577	150	195
Due within 1 year	Other	6	7	7	10
Due within 1 year	Deferred income	-	90	-	66
Due within 1 year	Amounts issued from the Consolidated Fund for supply but not spent at year end	1,675	1,675	1,520	1,520
Due within 1 year	Consolidated Fund extra receipts due to be paid to the Consolidated Fund: Received	1	1	141	141
Due within 1 year	Total	2,980	4,667	2,222	3,779
Due after 1 year	Contract Liabilities	-	8	-	-
Due after 1 year	Other payables, accruals and deferred income	-	107	-	111
Due after 1 year	Total	-	115	-	111
Payables at 31 Mar	Total	2,980	4,782	2,222	3,890

Core department

In 2024–25, Other Accruals falling due within one year includes a £517 million (2023–24: £nil) accrual relating to the department’s participation in the Horizon Europe and Copernicus programmes. In 2023–24, due to the timing of the call for funds, a prepayment was recognised. Please see note 12 ‘Trade and other receivables’ for further information.

Other Accruals falling due within one year also includes a £296 million (2023–24: £nil) accrual for the amount payable to the Cabinet Office in respect of the 2024–25 MOG change.

DSIT group

In 2024–25, other accruals totalled £2,602m (2023–24 £1,637 million). This includes grant accruals and other accrual types.

Within grant accruals, the largest group components relate to grant accruals for IUK (2024–25: £779 million, 2023–24: £702 million), EPSRC (2024–25: £174 million, 2023–24 £175 million), and MRC (2024–25: £105 million, 2023–24: £123 million). These entities are part of UKRI, whose financial statements include a grant accrual for each project where it has been determined that there is an unclaimed amount at the year end that is due to participants.

15. Lease liabilities

		31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Land	Later than 5 years	-	8	-	1
Land	Total	-	8	-	1
Land	Less interest element	-	(6)	-	1
Land	Present value of obligations	-	2	-	2
Buildings	Not later than one year	7	19	2	9
Buildings	Later than one year and not later than 5 years	22	68	4	48
Buildings	Later than 5 years	56	125	6	76
Buildings	Total	85	212	12	133
Buildings	Less interest element	(30)	(77)	(3)	(35)
Buildings	Present value of obligations	55	135	9	98
Other	Not later than one year	-	1	-	1
Other	Later than one year and not later than 5 years	-	3	-	3
Other	Later than 5 years	-	-	-	-
Other	Total	-	4	-	4
Other	Less interest element	-	-	-	(1)
Other	Present value of obligations	-	4	-	3
Total	Present value of obligations	55	141	9	103
Of which	Current	6	16	1	8
Of which	Non-current	49	125	8	95

Table: Additional analysis

		Core dept & agencies £m	DSIT group £m	Core dept & agencies £m	DSIT group £m
Additional analysis	Interest on lease liabilities	2	5	1	3
Additional analysis	Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	1	10	-	7

16. Provisions for liabilities and charges

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 Core dept & agencies £m	31 Mar 2024 DSIT group £m
Current liabilities: Not later than 1 year		-	19		3
Total current liabilities		-	19	-	3
Non-current liabilities: Later than 1 year and not later than 5 years		2	15	2	21
Non-current liabilities: Later than 5 years		-	190	-	181
Total non-current liabilities		2	205	2	202
Total at 31 Mar 2025		2	224	2	205
Other Provisions	16.1	2	224	2	205
Total at 31 Mar 2025		2	224	2	205

The provision liabilities in table 16.1 below have been discounted to present value using discount rates as provided by HM Treasury. Discounting as at 31 March 2024 and 31 March 2025 has been applied to nominal cash flows which include allowance for future inflation using a forecast of consumer price inflation provided by HM Treasury except where a more appropriate forecast has been identified for specific provisions. The impact of the change in the discounting approach is included in the ‘Change in discount rate’ movement of provisions.

Table : Discount rates for provisions

	31 Mar 2025 Nominal discount rate	31 Mar 2025 Inflation rate	31 Mar 2025 Equivalent real discount rate	31 Mar 2024 Nominal discount rate	31 Mar 2024 Inflation rate	31 Mar 2024 Equivalent real discount rate
Cash outflows expected within 2 years	4.03%	2.60%	1.40%	4.26%	3.60%	0.64%
Cash outflows expected between 2–5 years	4.03%	2.08%	1.92%	4.26%	1.95%	2.27%
Cash outflows expected between 5–10 years	4.07%	2.00%	2.03%	4.03%	2.00%	1.99%
Cash outflows expected after 10 years	4.59%	2.00%	2.54%	4.45%	2.00%	2.40%

16.1 Provisions analysis

Allowances for future inflation and discounting can impact on reported liabilities significantly; uninflated, undiscounted equivalent values are provided in the descriptions of the provisions below to illustrate the effect.

Table: Provisions analysis

	Core dept & agencies £m	DSIT group total £m
Balance at 1 Apr 2023	2	223
Change in discount rate	-	(16)
Provisions not required written back	-	(9)
Provisions utilised in the year	-	(3)
Provided in year	-	6
Unwinding of discount	-	4
Balance at 31 Mar 2024	2	205
Balance at 1 Apr 2024	2	205
Change in discount rate	-	1
Provisions not required written back	-	(3)
Provisions utilised in the year	-	(1)
Provided in year	-	18
Unwinding of discount	-	4
Balance at 31 Mar 2025	2	224
Estimated forward discounted cash flows as at 31 Mar 2025
Not later than 1 year	-	19
Later than 1 year and not later than 5 years	2	15
Later than 5 years	-	190
Total	2	224

Departmental group

Overall provisions are £224 million (2023–24: £205 million). The majority of the balance is attributed to STFC (2024–25: £151 million) and NERC (2024–25: £34 million), which both sit under UKRI. This mostly relates to the UKRI’s share of Institut Laue-Langevin (ILL) decommissioning provisions, and provisions to cover decommissioning of ISIS Spallation Neutron Source facility and construction of Waste Separation Facility (WSF).

17. Retirement benefit obligations

Departmental group

The departmental group consolidates three defined benefit pension arrangements from ALBs. The details of each scheme are discussed below.

All schemes are accounted for in accordance with IAS 19 ‘Employee Benefits’. They are subject to the UK regulatory framework and under the scope of the scheme specific funding requirement. The schemes’ trustees are responsible for operating these defined benefit plans and have a statutory responsibility for ensuring the schemes are sufficiently funded to meet current and future benefit payments.

Defined benefit scheme liabilities expose the departmental group to material financial uncertainty, arising from factors such as changes in life expectancy and in the amount of pensions payable. Some scheme investments, such as equities, should offer long-term growth in excess of inflation, but can be more volatile in the shorter term than government bonds.

UK Research and Innovation

UKRI operates the legacy MRC funded defined benefit, final salary pension scheme (MRCPS).

A full actuarial evaluation was undertaken as at 31 December 2022 which was rolled forward by the actuary to determine the approximate position as at 31 March 2025.

The key assumptions are discount rate of 5.7% (2023–24: 4.8%) and rate of increase in pension payments of 2.7% (2023–24: 2.8%). A decrease of 0.5% in the discount rate would lead to an increase of approximately 7% in the total liability, while a decrease of 0.5% in the rate of increase in pensions would lead to an approximate 5.2% reduction.

As at 31 March 2025, the weighted average maturity of the scheme as a whole is 14.5 years.

The MRC operates a funded pension scheme (MRCPS) providing benefits based on service and final pensionable pay at the normal retirement age of 65. The scheme is a defined benefit scheme that prepares its own scheme statements. Benefits accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to three years’ pension is payable on retirement. Members pay contributions of 6.5% pensionable earnings to the Scheme.

Following the transfer of MRC research units and employees to universities, a University section was set up to account for the obligations to individuals that remain in the MRCPS. During the period obligations of £2.1 million were recognised under Section 75 (S.75) of the 1995 Pensions Act in respect of liabilities of transferred employees; the University section, has been set up within MRCPS to manage S.75 liabilities. These costs are reflected in the valuation of the pension scheme.

Under section 222 of the Pensions Act 2004, every scheme (or section of a scheme) is subject to the Statutory Funding Objective, which is to have sufficient and appropriate assets to cover its Technical Provisions, which represent the present value of benefits to which members are entitled based on pensionable service to the valuation date. This is assessed at least every 3 years using assumptions agreed between the Trustee and the Employer, and the actuarial review will inform the required MRCPS contribution rate. The Scheme actuary is Aon UK Ltd.

The results of the 2022 valuation were agreed by the Trustee and the Employer in December 2023 and showed that the Principal Section had a surplus of assets over liabilities of £582.6m, and the Universities Section had a surplus of £24.4m. A combined surplus of £607.0m. These surpluses corresponded to funding levels of 148% and 124% for the Principal and Universities Sections respectively.

The present MRCPS employers’ contribution rate remained at 16% in 2024–25 (2023–24: 16%).

The contributions due to the scheme are set out in the schedule of contributions for each section. The most recent schedules of contributions were signed on 21 December 2023 and are due to be reviewed following the next actuarial valuation of the scheme, which is due to be carried out as at 31 December 2025.

The following payments are due in 2025–26:

MRC Section

By the members: 6.5% of pensionable pay
By MRC: 16.0% of pensionable pay
By other employers: 16.9% of pensionable pay

The total contribution expected to be paid into the MRC section in 2024–25 is £13m.

University Section

By the members: 6.5% of pensionable pay
By the universities: 16.9% of pensionable pay
By MRC: 13.3% of pensionable pay

The total contribution expected to be paid into the University section in 2024–25 is £6m.

On the technical provisions bases, we estimate that the duration on each section’s Technical Provisions basis at 31 March 2025 is 14.5 years for the scheme as a whole.

The valuation used for IAS 19 disclosures has been based on the data for the most recent actuarial valuations as at 31 December 2019, and updated to take account of the requirements of IAS 19 in order to assess the liabilities of the scheme at 31 March 2023. The mortality assumptions included within the figures are that male and female members who retire at typical ages will live to approximately age 87 and 89 respectively.

The 2024 Virgin Media pension ruling has raised concerns about the validity of past pension scheme amendments. Where amendments were made between 6 April 1997 and the date contracting out ended on 6 April 2016, section 37 of the Pension Schemes Act 1993 required scheme actuaries to certify that the scheme still met the standards for contracted-out schemes.

We understand that the legal advisers to the Scheme have been asked to consider the various amendments made to the Scheme and whether a written confirmation was required and provided. At this point in time, the Scheme is still in the process of trying to locate all written confirmations. Further uncertainty also remains about whether future Court cases or new regulation could have an impact. As such we propose that no formal recognition of a change in the defined benefit obligation resulting from the Virgin Media ruling will be made as part of the accounting disclosures as at 31 March 2025.

The Office of Communications

Ofcom has a range of pension schemes which include a defined contributions plan, defined benefit plans and unfunded plans. Ofcom’s primary means of providing pension benefits to its colleagues is by contributing to a stakeholder pension plan. Ofcom operates two defined benefit pension plans.

Ofcom’s cash contributions to these two plans are determined in accordance with the Pensions Act 2004. This requires a significantly more prudent measure of the liabilities than IFRS. Pensions Act 2004 funding valuations with an effective date of 31 March 2024 were completed for both defined benefit plans.

The key assumptions are discount rate of 5.8% (2023–24: 4.9%) and rate of increase in pension payments of 2% (2023–24: 2.1%).

As at 31 March 2025, the weighted average maturity of the scheme as a whole is 13 years.

Further details can be found in the accounts of Ofcom.

Table: Retirement benefit obligations

	31 Mar 2025 Funded pension schemes £m	31 Mar 2024 Funded pension schemes £m
Present value of defined benefit obligation at 1 Apr 2024	(1,421)	(1,424)
Interest cost	(57)	(56)
Current service cost	(18)	(17)
Benefits paid, transfers in and expenses	73	70
Actuarial (gains)/losses	169	10
Employee contributions	(5)	(4)
Present value of defined benefit obligation at 31 Mar 2025	(1,259)	(1,421)
Fair value of assets at 1 Apr 2024	2,239	2,172
Expected return on plan assets	97	90
Employer contributions	17	18
Benefits paid, transfers in and expenses	(73)	(70)
Actuarial gains or (losses)	(119)	25
Employee contributions	5	4
Fair value of assets at 31 Mar 2025	2,166	2,239
Net asset or (liability) at 31 Mar 2025	907	818

Table: Net asset or (liability) by scheme

	31 Mar 2025 Present value of defined benefit obligation £m	31 Mar 2025 Fair value of assets £m	31 Mar 2025 Net (liability)/asset £m	31 Mar 2024 Present value of defined benefit obligation £m	31 Mar 2024 Fair value of assets £m	31 Mar 2024 Net (liability/asset £m
UKRI	(1,106)	2,001	895	(1,237)	2,046	809
Ofcom	(153)	165	12	(184)	193	9
Total net asset or (liability) at 31 Mar	(1,259)	2,166	907	(1,421)	2,239	818

Notes

Pension scheme assets are recognised to the extent that they are recoverable and pension scheme liabilities are recognised to the extent that they reflect a constructive or legal obligation. The accounting judgements applied in recognising net assets for each pension scheme are summarised below:

UKRI: The net asset is recognised as UKRI derives benefits from the reduced contributions to the scheme.
The Principal Employer (with any other Participating Employer in respect of the relevant section) has an unconditional right to a refund of surplus.

Table: Asset allocation

	31 Mar 2025 £m	31 Mar 2024 £m
Equities	552	1,067
Property	360	350
Bonds	817	466
Other	437	356
Balance at 31 Mar 2025	2,166	2,239

The UKRI schemes’ total assets of £2,001 million (31 March 2024: £2,046 million) included £552 million (31 March 2024: £1,060 million) of equities, £816 million (31 March 2024: £466 million) of bonds and £360 million (31 March 2024: £350 million) of property assets. Bonds contain assets that have a quoted market price in an active market. As at March 2025, the value of those assets are £786 million. An investment strategy is in place which has been developed by the pension trustee, in consultation with the Employer to mitigate the volatility of liabilities, to diversify investment risk and to manage cash. To this end the majority of assets are invested in growth assets, which in the long term are expected to yield a greater return than would be available for fixed income assets such as bonds and gilts.

The Ofcom schemes’ total assets included £145 million of annuities (31 March 2024: £164 million).

Expected contribution over the next accounting period

It is possible that the actual amount paid might be different from the estimated amount. This may be due to contributions, benefits payments or pensionable payroll differing from expected, changes to schemes’ benefits or settlement/curtailment events that are currently unknown.

Table: Expected contribution over the next accounting period

	31 March 2025 £m	31 March 2024 £m
UKRI	19	18
Ofcom	1	1
Total	20	19

Table: Major actuarial assumptions for Ofcom and UKRI

	Ofcom 2024–25	Ofcom 2023–24	UKRI 2024–25	UKRI 2023–24
Discount rate	5.8%	4.9%	5.7%	4.8%
Inflation (Consumer Price Index)	2.6%	2.5%	2.7%	2.8%
Life expectancy in years at 65, currently aged 65 (male)	not applicable¹	not applicable¹	21.6	21.7
Life expectancy in years at 65, currently aged 45 (male)	not applicable¹	not applicable¹	23.0	23.2
Life expectancy in years at 65, currently aged 65 (female)	not applicable¹	not applicable¹	23.6	23.7
Life expectancy in years at 65, currently aged 45 (female)	not applicable¹	not applicable¹	24.9	24.9

Notes

Ofcom uses Life expectancy in years at 60, currently aged 40 for both male and females

Table: Sensitivity analysis

The increase in liability that would result from changes in these actuarial assumptions

	Ofcom £m	UKRI £m
0.05 percentage point decrease in annual discount rate	9	77
0.05 percentage point increase in inflation assumption	8	not applicable
1 year increase in life expectancy	7	37

UKRI

Financial assumptions used to calculate scheme liabilities

	2024–25 %	2023–24 %
Rate of increase on pensionable salaries	3.70	3.75
Rate of increase on pension payments	2.70	2.75
Discount rate	5.65	4.75
Inflation rate	2.70	2.75
Expected return on equities	5.65	4.75
Expected return on bonds	5.65	4.75
Expected return on overall fund	5.65	4.75

The results of any actuarial calculation are inherently uncertain because of the assumptions which must be made. The table below indicates the approximate effects on the actuarial liability as at 31 March 2025 of changes to the main actuarial assumptions.

Assumption	Change in assumption	Approximate effect on total liability	Approximate effect on total liability (£m)
Discount rate	-0.5%	+7.0%	77
Rate of increase in earnings	-0.5%	-0.7%	-8
Rate of increase in pensions	-0.5%	-5.2%	-57
Members experience mortality one year younger		3.4	37

Analysis of Actuarial gain

	2024–25 £m	2023–24 £m
Actual return less expected return on pension scheme assets	(102)	36
Experience gains arising on the scheme liabilities	(8)	(4)
Changes in demographic assumptions	3	8
Changes in financial assumptions	155	(4)
Actuarial gain	48	36

Analysis of actuarial gain expressed as a percentage of the scheme’s assets and liabilities at the SOFP date

	2024–25 %	2023–24 %
Actual return less expected return on pension scheme assets	(5.12)	1.79
Experience (loss)/gain arising on the scheme liabilities	(0.69)	(0.35)
Actuarial gain	4.46	2.96

Other finance income

	2024–25 £m	2023–24 £m
Expected return on pension scheme assets	96	90
Interest on pension scheme liabilities	(58)	(56)
Net return – other finance income	38	34

18. Capital and other financial commitments

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Contracted capital commitments	18.1	108	772	4	464
Other financial commitments	18.2	8,135	20,973	10,550	23,853
Total		8,243	21,745	10,554	24,317

A number of contracts now identified as cancellable have been removed from the 31 March 2024 position.

18.1 Capital commitments

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Contracted capital commitments not otherwise included in these financial statements
Property, plant and equipment	-	613	-	415
Intangible assets	2	2	4	4
Investment properties	106	106	-	-
Loans, Investments	-	51	-	45
Total	108	772	4	464

Departmental group

Capital commitments as at 31 March 2025 include the following significant items:

Property, plant and equipment commitments for UKRI of £550 million (31 March 2024: £373 million).

18.2 Other financial commitments

The departmental group has entered into non-cancellable contracts (which are not leases, PFI contracts or other service concession arrangements) for subscriptions to international bodies and various other expenditures. Future payments to which the departmental group is committed are shown below.

Table: Other financial commitments

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Not later than one year	2,889	8,127	1,885	7,484
Later than one year and not later than 5 years	5,118	12,218	8,505	15,963
Later than 5 years	128	628	160	406
Total	8,135	20,973	10,550	23,853

International subscriptions

The financial commitments payable include subscriptions payable to international bodies, analysed by the period in which the payments are due.

Table: International subscriptions

	Within 1 year £m	Later than 1 year and not later than 5 years £m	Later than 5 years £m	Total 31 Mar 2025 £m	Total 31 Mar 2024 restated £m
Horizon Europe	2,006	3,314	-	5,320	7,240
Copernicus	122	266	-	388	460
European Space Agency	327	1,229	123	1,679	2,184
Other subscriptions	1	3	5	9	8
Total core dept and agencies	2,456	4,812	128	7,396	9,892
European Organisation for Nuclear Research (CERN)	171	99	-	270	271
Institut Laue Langevin (ILL)	19	81	82	182	143
Other subscriptions	90	185	19	294	365
Total DSIT group	2,736	5,177	229	8,142	10,671

Notes

The DSIT group is required to subscribe to a number of bodies on an on-going and continuous basis. These subscriptions are paid in euros, Swiss francs and pounds sterling. The subscriptions described below are paid in euros or Swiss francs and amounts paid are subject to fluctuations due to exchange rate differences.
Horizon Europe and Copernicus: The core department is responsible for paying the UK’s contribution to the Horizon Europe and Copernicus programmes to the European Commission.
European Space Agency (ESA): The UK Space Agency pays international subscriptions to the ESA three times a year and these amounts are agreed several years in advance. The payments reported reflect existing commitments on forward exchange contracts placed with the Bank of England to cover periods to January 2026. The annual subscriptions are to be set at a minimum of €300 million and will be aligned with the agreed ESA programmes activity. It is expected that these amounts will be paid by means of forward exchange contracts or amounts translated on the date of payment.
European Organisation for Nuclear Research (CERN): UKRI shares the funding of the capital and running costs of CERN with other major scientific nations. There is a notice of withdrawal period of 12 months after the end of the current calendar year.
Institut Laue Langevin (ILL): The UK, through UKRI, has signed up to International Conventions with respect to ILL. The fifth protocol of the Intergovernmental Convention was signed in July 2013 and will remain in force until 31 December 2023. Thereafter it shall be tacitly extended from year to year unless any of the governments give written notification to the other governments of its intention to withdraw from the Convention. Any such withdrawal will take effect upon the expiry of two years from the date of receipt of the notification by any of the other governments or on such later date as may be specified in the notification.
Other subscriptions: UKRI had a number of other commitments in respect of membership of international collaborations, including subscriptions to Square Kilometre Array of £74 million as at 31 Mar 2025 (31 Mar 2024: £105 million).

Other commitments

The financial commitments payable in future years include payments due under non-cancellable contracts to the organisations below.

Table: other commitments

	Within one year £m	Later than one year and not later than 5 years £m	Later than 5 years £m	31 Mar 2025 Total £m	31 Mar 2024 restated Total £m
Ordnance Survey	146	300	-	446	389
Met Office	145	-	-	145	143
Other commitments	142	6	-	148	126
Total core dept and agencies	433	306	-	739	658
UKRI grants	4,956	6,732	399	12,087	12,524
Other commitments	2	3	-	5	-
Total DSIT group	5,391	7,041	399	12,831	13,182

Notes

Ordnance Survey and Met Office: The core departments largest non-cancellable contractual commitments are to Ordnance Survey for the Public Sector Geospatial Agreement and the Met Office for the Public Weather Service.
UKRI grants: UKRI have contractual obligations for grant commitments. The total commitment as at 31 March 2025 is £12,130 million (31 March 2024: £12,524 million).

19. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are detailed below at their carrying amounts within the relevant categories.

Financial assets

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Held at amortised cost
Cash and cash equivalents	13	1,669	2,304	1,652	2,449
Receivables¹	12	25	308	272	571
Loans to public sector bodies²	9.3	269	269	299	278
Other financial assets	10.1	43	152	13	112
Total		2,006	3,033	2,236	3,410
Held at mandatory Fair Value through Profit or Loss (FVPL)
Other financial assets and private sector loans	10.1	-	439	-	447
Total		-	439	-	447
Held at Fair Value through Other Comprehensive Income (FVOCI)
Ordinary shares in public sector companies³	9.1	213	212	225	223
Other financial assets	10.1	-	15	-	28
Total		213	227	225	251
Public dividend capital
Public dividend capital	9.2	65	65	65	65
Total		65	65	65	65
Total financial assets		2,284	3,764	2,526	4,173

Financial liabilities

	Note	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Held at amortised cost
Payables¹	14	(1,820)	(1,965)	(1,854)	(2,049)
Total		(1,820)	(1,965)	(1,854)	(2,049)
Held at mandatory FVPL
Derivatives	20	(140)	(145)	(30)	(37)
Total		(140)	(145)	(30)	(37)
Held at designated FVPL
Loan commitment liabilities		-	(3)	-	(3)
Total		-	(3)	-	(3)
Total financial liabilities		(1,960)	(2,113)	(1,884)	(2,089)

Notes

The amounts disclosed above as payables and receivables exclude any assets or liabilities which do not arise from a contractual arrangement.
This is comprised of loans to public sector bodies and other loans and investments in other public sector bodies detailed in note 9.3 Other investments and loans.
Ordinary shares in public sector companies excludes bodies that are consolidated in the DSIT group, as these are held at cost, see note 9.1 Ordinary shares.

Financial risk management

Financial instruments can impact an entity’s financial performance and position. Their impact on the DSIT group is disclosed below. Cash requirements for the DSIT group are largely met through the estimates process so financial instruments play a more limited role in creating risk compared to a private sector body of a similar size. The DSIT group is exposed to credit risk, market risk, and liquidity risk.

Credit risk

Credit risk is the risk that a party to a financial instrument will cause a financial loss for the other by failing to discharge an obligation. Significant credit risks are summarised below.

Heading 1	Heading 2	Description
DSIT group	Other financial assets: Investment funds £355m (31 March 2024: £325m)	Investee companies may not perform as expected and the departmental group may not recover its initial investment. The department minimises the risk by monitoring the overall performance of the funds to secure value for the core department as an investor. This includes a full evaluation of each business case submitted prior to committing funds.
DSIT group	Cash and cash equivalents: £2,304m (31 March 2024: £2,449m)	The cash and cash equivalents are held with banks and financial institutions which are rated AA- to AA+ based on S&P ratings. Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The departmental group considers that cash and cash equivalents have a low credit risk based on the external credit ratings of the holding parties.
DSIT group	Other financial assets: Innovate UK Loans Limited £120m (31 March 2024: £122m)	The departmental group’s most substantial exposure to credit risk relates to the lending of Innovate UK Loans Limited (IUKL). More detailed disclosure is available in the published statutory accounts of this subsidiary. The nature of innovation loans is such that this type of lending is expected to have a relatively higher credit risk profile compared to lower-risk commercial lending secured on a range of tangible and intangible assets at the market interest rates that private sector financial institutions typically offer. IUKL adopts robust credit risk management policies designed to recognise and manage the risks arising from the portfolio. At 31 March 2025 there were 40 innovation loans with a significant increase of credit risk and 29 loans that were credit impaired (defaults) (at 31 March 2024 there were 17 loans with a significant increase of credit risk and 11 loans with credit impairment (defaults)), as defined by the IUKL’s staging transfer criteria, at the end of the financial year. A consequence of the classification of innovation continuity loans as FVTPL is that these loans are outside the scope of ECL provisions and the provisions for irrevocable commitments, and so provisions cannot be made for these loans.
DSIT group	Trade receivables: £251m (31 March 2024: £309m)	The core department applies the IFRS 9 simplified approach using an allowance matrix to measure the lifetime expected loss allowance for trade receivables in accordance with the FREM guidance. Trade receivables are grouped based on credit risk characteristics and the number of past due days. Default is defined as 90 days past due. The loss rates are estimated using the historic data for each aging group. Forward-looking information such as macroeconomic factors and entity specific situations are considered for entities with significant outstanding balances. Balances with other core central government departments are excluded from recognising stage-1 and stage-2 impairments following the FREM adaptions. The departmental group has an immaterial expected credit loss on the assets that it holds and has therefore assessed the overall level of credit risk as low.
DSIT group	Public and private sector loans and gilts: £335m (31 March 2024: £315m)	Where possible, the departmental group monitors changes in credit risk by tracking published external credit ratings. An internal credit rating system, which was developed based on other established methodologies, was used to assign credit risks for loans that do not have an external credit rating. 12-month and lifetime probabilities of default are based upon Moody’s published research on the global default rate adjusted for historical repayment data and any macroeconomic pressures which could impact the entity’s ability to repay the loan. The departmental group’s assessments show that it has an immaterial expected credit loss on the assets that it holds.

Market risk

Heading 1	Heading 2	Description
Foreign currency risk	Core dept	DSIT’s exposure to foreign currency risk during the year was significant, though this was considerably mitigated by the use of cashflow hedge contracts. The contributions, in Euros, to the European Commission for the Horizon and Copernicus programmes, were made in two instalments during the year, see Note 18 for details of these financial commitments. The department aims to manage a layered portfolio of forward contracts to purchase Euros at 90% of the annual subscription payable to EC during a calendar year thereby fixing the exchange rate to be used. The remaining unhedged portion is translated at the prevailing spot rate. Detailed disclosures related to these derivative financial instruments are included in Note 20.
Foreign currency risk	Agencies	UKSA pays an annual subscription in euros to the European Space Agency (ESA) and enters into forward contracts to mitigate the risk. These derivative contracts are designated as cashflow hedges.
Foreign currency risk	ALBs	UKRI are exposed to foreign currency risk in relation to international subscription payments made. This is principally for payments to CERN. UKRI have entered into hedging arrangements to minimise this risk. UKRI and NESTA Trust are subject to minor foreign currency risk through the maintenance of bank accounts in foreign currencies (including US dollar, euros and Swiss francs) to deal with day-to-day overseas transactions.
Interest rate risk	Core dept	The core department does not invest or access funds from commercial sources so is not exposed to interest rate risk.
Other market risk	Core dept	The core department is exposed to wider risks relating to the performance of the economy as a whole. The main risks resulting from a downward movement in the economy include failures of investee companies of investment funds and loan defaults.
Other market risk	ALBs	The Nesta Trust is exposed to equity price risk due to its investment of a portion of its endowment assets in publicly listed equity investments. The Nesta Trust manages this risk by investing for the medium to long term, diversifying across managers with complementary styles, and investing in funds alongside large institutional investors. The performance of investment managers is monitored regularly. Financial assets held at fair value through profit or loss are valued using established fair value measurement techniques. Where investments are actively traded, fair value is based on quoted bid prices at the reporting date. For other investments, valuations are provided by fund managers using recognised approaches such as earnings multiples, discounted cash flow analysis or net asset values, consistent with the fair value measurement principles set out in the applicable accounting standards.

Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

Heading	Description
Core dept and agencies	In common with other government departments, the future financing of its liabilities is to be met by future grants of supply, voted annually by Parliament. There is no reason to believe that future approvals will not be forthcoming, therefore on this basis the liquidity risk to the core department and its agencies is minimal.

Fair value hierarchy

The table below shows financial instruments carried at fair value, by valuation method.
Level 1 valuation: uses a quoted market price in an active market, for an identical assets or liability. This is the most reliable evidence of fair value. It is used without adjustment.
Level 2 valuation: uses other observable inputs other than a quoted price for the asset or liability either directly or indirectly.
Level 3 valuation: uses unobservable inputs for the assets or liabilities, not based on observable market data – such as internal models or other valuation method.

Table: Financial assets, fair value hierarchy

	31 Mar 2025 Level 1 £m	31 Mar 2025 Level 2 £m	31 Mar 2025 Level 3 £m	31 Mar 2025 Total £m	31 Mar 2024 restated Level 1 £m	31 Mar restated Level 2 £m	31 Mar 2024 restated Level 3 £m	31 Mar 2024 restated Total £m
Held at mandatory FVPL
Private sector loans	-	-	35	35	-	-	48	48
Private sector shares	-	-	49	49	34	-	40	74
Investment funds	141	-	214	355	150	-	175	325
Total	141	-	298	439	184	-	263	447
Held at FVOCI
Ordinary shares in public sector companies	-	212	-	212	-	223	-	223
Private sector shares	2	-	13	15	2	-	26	28
Total	2	212	13	227	2	223	26	251
Total financial assets	143	212	311	666	186	223	289	698

Table: Financial liabilities, fair value hierarchy

	31 Mar 2025 Level 1 £m	31 Mar 2025 Level 2 £m	31 Mar 2025 Level 3 £m	31 Mar 2025 Total £m	31 Mar 2024 restated Level 1 £m	31 Mar 2024 restated Level 2 £m	31 Mar 2024 restated Level 3 £m	31 Mar 2024 restated Total £m
Held at mandatory FVPL
Derivatives	-	(145)	-	(145)	-	(37)	-	(37)
Total	-	(145)	-	(145)	-	(37)	-	(37)
Held at designated FVPL
Loan commitment liabilities	-	-	(3)	(3)	-	-	(2)	(2)
Total	-	-	(3)	(3)	-	-	(2)	(2)
Total financial liabilities	-	(145)	(3)	(148)	-	(37)	(2)	(39)

Notes

Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. There were no transfers between levels during the year.

Specific valuation techniques used to value financial instruments include:

the fair value of forward foreign exchange contracts is determined using forward exchange rate at the reporting date based on level 2 inputs, with the resulting value discounted back to present value
other techniques, such as discounted cashflow analysis or for non-quoted ordinary shares and investment funds that are not actively traded, the net assets of the company/underlying fund are used – these are classified as level 3
the fair value of public sector shares is based upon net assets and classified as level 2
Investment funds are managed by private equity managers. As there is no identifiable market price, these funds are included at the most recent valuations provided by the private equity managers, adjusted for cash calls and distributions. These are classified as level 3.

Table: Changes in level 3 instruments

Changes in level 3 instruments, 2024–25, in £ millions

	Ordinary shares in unlisted private equities	Investment funds and other financial investments	Loan Commitment Liabilities	Total
Balance at 1 Apr 2024	66	223	(2)	287
Additions	9	89	-	98
Repayments or disposals	(2)	(52)	-	(54)
Revaluations	(11)	(13)	-	(24)
Gains and losses recognised in SOCNE	-	2	(1)	1
Balance at 31 Mar 2025	62	249	(3)	308

Changes in level 3 instruments, 2023–24 restated, in £ millions

	Ordinary shares in unlisted private equities	Investment funds and other financial investments	Loan Commitment Liabilities	Total
Balance at 1 Apr 2023	49	218	(1)	266
Additions	18	22	(2)	38
Repayments or disposals	-	(5)	-	(5)
Revaluations	2	(12)	-	(10)
Gains and losses recognised in SOCNE	(3)	-	1	(2)
Balance at 31 Mar 2024	66	223	(2)	287

20. Derivative financial instruments

In the current reporting period, DSIT entered into a number of derivative contracts that were designated as cashflow hedges to better plan currency fluctuations in relation to international subscriptions commitments payable to the European Commission (EC) in Euros. These contracts are revalued at each year end based on the future forward market rates, as provided by the Bank of England. Any such revaluations at the year end therefore reflected unrealised gains and losses at 31 March.

DSIT uses forward exchange contracts as part of a balanced portfolio of hedges designed to control foreign currency risk in line with the level of risk appetite adopted by the executive committee. The department is fully compliant with the DSIT departmental hedging policy, which forbids using financial instruments for speculative purposes. Forward exchange contracts may be placed with the Bank of England where the expected cost at the current exchange rate represents at least 2% of the total budget or the value of the transaction is greater than £2 million. The only form of hedging foreign currency risk allowed within the DSIT family of ALBs is the use of forward exchange contracts so as to provide a greater budgetary certainty and therefore plan the future expenditure more effectively.

Throughout the current reporting period, the department entered into 48 (2023–24: nil) forward exchange contracts to hedge 90% of existing international subscriptions commitments payable to the EC between August 2024 and August 2027. During the reporting period, three forward contracts reached maturity and were disposed of accordingly.

Table: Derivative financial instruments

	31 Mar 2025 Core dept & agencies £m	31 Mar 2025 DSIT group £m	31 Mar 2024 restated Core dept & agencies £m	31 Mar 2024 restated DSIT group £m
Balance at 1 April	(30)	(37)	-	(2)
Additions (contracts purchased in year)	-	-	(2)	(2)
Disposals (contracts settled in year)	17	17	7	7
Revaluation movement	(127)	(125)	(43)	(48)
Transfers	-	-	8	8
Balance at 31 March	(140)	(145)	(30)	(37)
Non-current derivative liabilities	(74)	(74)	(21)	(21)
Current derivative liabilities	(66)	(71)	(9)	(16)
Total derivative liabilities	(140)	(145)	(30)	(37)
Net derivative assets and liabilities	(140)	(145)	(30)	(37)
Net change in value of cash flow hedges impacting reserves	127	125	43	48

Notes

Additions (contracts purchased in year): the fair value of the derivatives entered into during the period is assumed to be nil.
Disposals (contracts settled in year): the disposal value arose through the completion of 3 forward contracts with settlement dates falling in the reporting period. This disposal represented a realised loss on the hedging instrument which was recognised in the SOCNE and therefore decreased the liability position at the accounting period end date.

There is no impact on any previously recognised reserves as these contracts were added and disposed of in the same period.

Revaluation movement: revaluation movement represents the difference in the fair value of the contracts on inception as compared to the fair value of the contracts at the year end date for unsettled contracts and the settlement date for settled contracts.
The GBP to EUR forward rate moved from a weighted average 1.145 to 1.168 during the period from inception to year end across all unsettled contracts.
All derivatives held by the core department are cash flow hedges. The net change in cash flow hedges impacting core department reserves is £88 million (2023–24: £nil).

Cashflow hedge contracts

The hedge contract is designed to allow for cash flow planning and enables effective budgeting to align with the comprehensive spending reviews which are normally undertaken by the government every three years. The hedge contract is not designed to protect against currency risk which will result in an unrealised gain or loss arising each year end when hedges are revalued.

During the reporting period the core department maintained in total a hedge portfolio of 48 forward exchange contracts (2023–24: nil), 3 of which matured during the year. In the reporting period, DSIT entered into several forward exchange contracts to hedge 90% of existing international subscriptions payable to the EC in Euros between August 2024 and August 2027. At the reporting date, the nominal value of these forward contracts was €5,224 million. Forward contracts are to be settled in line with the payment dates of the associated contributions to the EC, as described in note 18.

The fair value of forward exchange contracts is determined by comparing the contractually agreed cost on creation of the contract with the fair value of the contract translated at the future forward market rate provided by the Bank of England at close of trading on 31 March 2025 for the relevant forward exchange contracts’ settlement dates. These are indicative rates only, and therefore in accordance with IFRS 13 Fair Value Measurements, the valuation inputs are classified as Level 2. These are included within Note 19 – Financial Instruments.

Hedge effectiveness is assessed at inception and on an ongoing basis by comparing the change in the fair value or cash flows of the hedging instrument with the changes in the fair value or cash flows of the hedged item. All hedges were highly effective at inception, settlement and reporting date and therefore hedge accounting was applied.

21. Contingent liabilities

21.1 Unquantifiable contingent liabilities

Departmental group

UKRI

UKRI recognises a contingent liability against operations linked to global fiscal obligations. They are continuing to investigate historic activity and to ensure future compliance across all operational sites.

Harwell

HSIC PubSP has a contingent liability as a result of a guarantee provided to HSIC General Partner Ltd to make good any shortfall in rent on an investment property at Harwell. This contingent liability is unquantifiable at present and is dependent on certain market conditions. It is not considered likely that these conditions will occur.

Others

There are a number of potential liabilities for the departmental group in respect of claims from suppliers, employees and third parties which depend on actual or potential proceedings. The timing and amounts of any liabilities are uncertain.

21.2 Quantifiable contingent liabilities

Departmental group

UKRI – (STFC) reprocessing and staff commitments

UKRI recognises a contingent liability for its share of Institut Laue-Langevin (ILL) staff-related commitments that will arise on the closure of the facility. The contingent liability will become a provision when a detailed closure plan has been documented and communicated to all those affected. The estimated value of this liability is £9.4 million.

BDUK – European Regional Development Fund (ERDF) Superfast liability

This contingent liability for a potential clawback in relation to European Regional Development Fund (ERDF) funding for two broadband projects which were procured through change requests to existing contracts with BT remains in place. The contracts were agreed under the 2012 State Aid National Broadband Scheme (NBS) which expired in June 2015. However, the England ERDF Operational Programme for the 2014–20 period was not agreed until later in 2015 and therefore the funding was added to the contracts in 2016. BDUK believes the funding meets the ERDF criteria given that the contracts had state aid clearance and provision for the extra ERDF funding was included.

However, it is possible that the ERDF auditors decide that the additional funding was not in compliance with ERDF criteria as it was added to the contracts after the expiration of the NBS. Advice from the Ministry of Housing, Communities and Local Government (MHCLG) is that the maximum level of possible fines or penalties would be £2.5 million. The outcome will not be known until the relevant audits have taken place, with the potential of an audit challenge remaining in place until 2026.

The core department is the parent of the bodies listed in note 24. List of bodies in the DSIT group – these bodies are regarded as related parties and various material transactions have taken place during the reporting period between members of the departmental group. The related parties of the consolidating bodies are disclosed in their respective accounts.

The core department has engaged in material transactions with other consolidated bodies, other government bodies, and devolved administrations (the Northern Ireland Executive, Scottish government and Welsh government). The most significant of these transactions have been with the Exchequer Consolidated Fund and UKRI.

Ministers, board members, key managers of the departmental group or other related party have not undertaken any material transactions with the core department during the year. Details of the department’s ministers and senior managers are shown in the Remuneration Report.

In the course of allocating funding during the year, UKRI entered into material transactions with various higher education institutions. Where these bodies have board members who are also members of university councils, each body operates a policy that precludes interested parties from voting on the funding to the university in which they have an interest. Further details of these transactions can be found in statutory accounts of UKRI.

A number of DSIT’s ALBs entered into transactions with the Government Property Agency (GPA) in relation to rental payments for office accommodation.

23. Restatements of SOFP and SOCNE as a result of machinery of government changes and other restatements

In a written Prime Ministerial Statement on 24 July 2024, the Prime Minister announced a MOG change, moving GDS, CDDO and i.AI from the Cabinet Office (CO) into DSIT with immediate effect. This was to unite efforts in the digital transformation of public services under one department and forms part of wider efforts to launch DSIT as the digital centre of government, working closely with the Cabinet Office and HM Treasury, to maximise the potential of digital, data and technology to deliver for the British public.

Function	Exporting Department	Importing Department
Government Digital Service	Cabinet Office	Department for Science, Innovation and Technology
Central Digital and Data Office	Cabinet Office	Department for Science, Innovation and Technology
Incubator for AI	Cabinet Office	Department for Science, Innovation and Technology

In accordance with the FREM, DSIT has accounted for the change as a MOG transfer by merger. For the transfer, the CO identified and isolated the relevant cost centres for all balances and transactions as at 31 March 2024 and 31 March 2023. Shared central costs were split according to relevant cost drivers and no complex assets or liabilities transferred to DSIT from the CO.

As a result of this change and as required by IAS1, DSIT has restated the comparative balances and has included a third SOFP at 1 April 2023. The tables below set out the changes to the comparative figures:

Table 1: Impact of restatements on opening balances for the departmental group at 31 March 2024

	Balance at 31 March 2024 per published accounts £m	Balance transferred from CO at 31 March 2024 £m	Restated balance at 31 March 2024 £m
Consolidated SOCNE
Net Expenditure for the period	12,335	180	12,515
Other Comprehensive net income and expenditure	(215)	-	(215)
Total Comprehensive expenditure	12,120	180	12,300
Consolidated SOFP
Non-current assets	6,348	136	6,484
Current Assets	4,313	21	4,334
Current liabilities	(3,780)	(29)	(3,809)
Non-current liabilities	391	(2)	389
General fund	4,115	125	4,240
Revaluation Reserve	1,762	1	1,763
Pension reserve	818	-	818
Charitable funds	424	-	424
Minority interest	153	-	153
SOPS
Resource DEL	635	180	815
Capital DEL	12,363	75	12,438
Resource AME	231	-	231
Capital AME	(105)	-	(105)
Net outturn for the year	13,124	255	13,379

Table 2: Impact of restatements on opening balances for the core department and agencies at 31 March 2024

	Balance at 31 March 2024 per published accounts £m	Balance transferred from CO at 31 March 2024 £m	Restated balance at 31 March 2024 £m
Consolidated SOCNE
Net Expenditure for the period	13,243	180	13,423
Other Comprehensive net income and expenditure	41	-	41
Total Comprehensive expenditure	13,284	180	13,464
Consolidated SOFP
Non-current assets	1,152	136	1,288
Current Assets	2,580	21	2,601
Current liabilities	(2,203)	(29)	(2,232)
Non-current liabilities	(29)	(2)	(31)
General fund	1,470	125	1,595
Revaluation Reserve	30	1	31

Table 3: Impact of restatements on opening balances for the departmental group at 1 April 2023

	Balance at 31 March 2023 per published accounts £m	Balance transferred from CO at 31 March 2023 £m	Restated balance at 1 April 2023 £m
Consolidated SOFP
Non-current assets	6,279	79	6,358
Current Assets	1,464	14	1,478
Current liabilities	(2,256)	(25)	(2,281)
Non-current liabilities	335	(3)	332
General fund	2,817	64	2,881
Revaluation Reserve	1,673	1	1,674
Pension reserve	748	-	748
Charitable funds	426	-	426
Minority interest	158	-	158

Table 4: Impact of restatements on opening balances for the core department and agencies at 1 April 2023

	Balance at 31 March 2023 per published accounts £m	Balance transferred from CO at 31 March 2023 £m	Restated balance at 1 April 2023 £m
Consolidated SOFP
Non-current assets	1,268	79	1,347
Current Assets	612	14	626
Current liabilities	(663)	(25)	(688)
Non-current liabilities	(11)	(3)	(14)
General fund	1,132	64	1,196
Revaluation Reserve	74	1	75

24. List of bodies in the DSIT group

The list of bodies within the DSIT group is given in the following documents:

Designation order – Government Resources and Accounts Act 2000 (Estimates and Accounts) Order 2024
Amendment order – Government Resources and Accounts Act 2000 (Estimate and Accounts) (Amendment) Order 2024

Table: Designated bodies consolidated in the DSIT group accounts

	Notes	Status
UK Space Agency	-	Executive agency
Building Digital UK	-	Executive agency
Advanced Research and Invention Agency	-	NDPB
British Technology Investments Limited	-	Other public body
The Copyright Tribunal	No accounts produced as costs are included in the core department’s expenditure. It is funded by the core department and operated by UK Intellectual Property Office.	NDPB
Council for Science and Technology	No accounts produced as costs are included in the core department’s expenditure.	Expert committee
Diamond Light Source Limited		Other public body
Geospatial Commission	No accounts produced as costs are included in the core department’s expenditure.	Expert committee
Harwell Science and Innovation Campus Public Sector Limited Partnership	Joint venture owned by UKRI and UK Atomic Energy Authority.	Other public body
Information Commissioner’s Office	-	NDPB
The NESTA Trust	-	Other public body
Office of Communications	-	Other public body
United Kingdom Research and Innovation	-	NDPB
Medical Research Council	Consolidated by UKRI	-
Innovate UK Loans Limited	Consolidated by UKRI	-
Knowledge Transfer Network Limited	Consolidated by UKRI	-
STFC Innovations Limited	Consolidated by UKRI	-
UK Shared Business Services Limited	-	Other public body

Table: Designated bodies not consolidated in the DSIT group accounts

	Notes	Status
Daresbury SIC (PubSec) LLP	A joint venture between the Science and Technology Facilities Council (part of UKRI) and Halton Borough Council. Turnover and net assets are not material to DSIT group accounts.	Other public body
Office of the Adjudicator Broadcast Transmission Services Limited	Turnover and net assets are not material to DSIT group accounts.	Other public body
Office of the Adjudicator Limited	Turnover and net assets are not material to DSIT group accounts.	Other public body
Phone-paid Services Authority Limited	Turnover and net assets are not material to DSIT group accounts. Ofcom formally adopted responsibility for activities previously regulated by Phone-paid Services Authority Limited on 31 January 2025.	Other public body

25. Events after the reporting period

Non-adjusting events

On 3 June 2025 the government announced a machinery of government change with the responsibility for government and public sector cyber security transferring from the Cabinet Office into DSIT in the 2025–26 financial year. The department has determined that the event is a non-adjusting subsequent event, accordingly the SOFP has not been adjusted.

On 19th June 2025 Eutelsat issued a press release announcing their intention to raise €1.35bn in additional funding by way of (i) a reserved capital increase of €716 million and (ii) a rights issue of €634 million.

25.1 Date accounts authorised for issue

DSIT’s accounting officer has authorised these accounts to be issued on the same day as they were certified.

Question 6

Annex A: Common core tables

Accepted Answer

The core tables represent expenditure for resource and capital, set for each year in the Spending Review process (amended to incorporate transfers of functions to other government departments as they have arisen).

These tables are not reported on the same basis as the financial statements disclosures, with differing categories and headings based on the department’s estimates allocation of activities and budgeting not financial reporting terms.

The core tables are produced automatically from the HMT system (Online System for Central Accounting and Reporting (OSCAR)) which is used by all central government departments to record their spending and plans.

Total departmental spending is the sum of the resource budget and the capital budget less depreciation. Similarly, total DEL is the sum of the resource budget DEL and capital budget DEL less depreciation in DEL, and total AME is the sum of resource budget AME and capital budget AME less depreciation in AME.

Table 1 – Total Departmental Spending

	2020–21 Outturn restated £’000	2021–22 Outturn restated £’000	2022–23 Outturn restated £’000	2023–24 Outturn restated £’000	2024–25 Outturn £’000	2025–26 Planned £’000
Resource DEL
Deliver an ambitious industrial strategy	21,253	23,164	21,069	23,066	5,378	6,130
Promote competitive markets and responsible business practices	-	1	(1)	-	-	-
Delivering affordable energy for households and businesses	-	-	(402)	-	-	-
Taking action on climate change and decarbonisation	-	-	73	-	-	-
Science and Research	26,260	40,516	5,681	32,047	35,435	61,602
Capability	136,541	95,411	131,873	165,713	210,916	326,165
Government as Shareholder	(25,600)	(8,500)	(24,784)	(70,290)	(18,860)	(16,513)
Support for the Digital, Broadcasting and Media sectors	103,660	120,614	92,417	115,719	88,710	103,279
Modernising and reforming the work of the Government Functions	90,583	81,234	114,710	179,698	204,375	192,305
Building Digital UK	-	-	57,599	39,669	42,700	49,345
Science and Research (ALB) net	223,930	230,771	225,803	305,925	266,082	339,728
Capability (ALB) net	11,103	12,379	50,348	3,171	8,726	1
Government as Shareholder (ALB) net	-	1,563	(617)	1,526	8,893	2,000
Broadcasting and Media ALB (net)	8,756	1,931	4,999	17,431	12,895	8,028
Science and Research (CFER)	-	(555)	-	1,139	-	-
Total Resource DEL	596,486	598,529	678,768	814,814	865,250	1,072,070
Of which:
Current grants to persons and non-profit (net)	23,670	11,400	11,693	12,029	12,686	2,708
Depreciation	252,142	284,968	284,962	360,586	330,246	451,863
Income from sales of goods and services	(109,714)	(146,388)	(5,583)	(8,303)	(6,205)	(44,110)
Net public service pensions	1,113	1,613	-	-	-	-
Other resource	(173,016)	(189,475)	(296,679)	(422,685)	(378,360)	(323,604)
Purchase of goods and services	253,694	303,788	286,884	389,402	381,969	450,299
Rentals	7,448	4,700	3,878	2,134	1,038	-
Staff costs	331,677	327,976	385,514	446,705	482,605	462,528
Subsidies to private sector companies	-	-	(375)	-	-	-
Subsidies to public corporations	3,822	1,804	2,804	3,113	5,194	3,724
Take up of provisions	5,316	(2,015)	4,418	10,054	12,802	10,000
Change in pension scheme liabilities	18	19	780	624	943	-
Current grants abroad (net)	316	139	246	20,995	20,914	53,288
Current grants to local government (net)	-	-	226	160	1,418	5,374
Resource AME
Deliver an ambitious industrial strategy	-	-	-	154	153	153
Science and Research	71,338	65,639	88,947	158,522	249,165	547,280
Capability	4,058	1,337	335	(53)	34	-
Government as Shareholder	-	20,700	-	-	-	-
Modernising and reforming the work of the Government Functions	-	-	-	376	-	-
Deliver an ambitious industrial strategy (ALB) net	(71,317)	473	43,060	1,212	(3,702)	13,322
Science and Research (ALB) net	76,343	191,875	82,267	71,584	127,699	115,530
Capability (ALB) net	-	10	-	2	-	-
Government as Shareholder (ALB) net	-	(1)	-	-	(8,403)	-
Broadcasting and Media ALB (net)	(4,586)	(1,749)	(533)	(767)	644	3,197
Total Resource AME	75,836	278,284	214,076	231,030	365,590	679,482
Of which:
Current grants to persons and non-profit (net)	-	-	-	-	-	146,164
Depreciation	(70,729)	(13,807)	54,376	59,628	50,248	49,167
Other resource	45,084	81,446	139,852	86,706	185,715	392,786
Purchase of goods and services	29,123	38,465	26,428	31,722	37,294	2,178
Release of provision	(8,196)	457	(595)	(1,804)	(605)	299
Release of provisions covering pension benefits	(1,116)	(1,613)	-	-	-	-
Rentals	(2,366)	(2,522)	(2,538)	(2,540)	(2,541)	(2,540)
Subsidies to private sector companies	675	-	-	-	-	-
Take up of provisions	21,378	102,111	(79,697)	(14,098)	21,458	14,031
Unwinding of discount rate on pension scheme liabilities	32,978	32,876	43,854	55,158	57,110	47,555
Change in pension scheme liabilities	29,005	40,871	32,396	16,258	16,911	29,842
Total Resource Budget	672,322	876,813	892,844	1,045,844	1,230,840	1,751,552
Of which:
Current grants to persons and non-profit (net)	23,670	11,400	11,693	12,029	12,686	148,872
Depreciation	181,413	271,161	339,338	420,214	380,494	501,030
Income from sales of goods and services	(109,714)	(146,388)	(5,583)	(8,303)	(6,205)	(44,110)
Net public service pensions	1,113	1,613	-	-	-	-
Other resource	(127,932)	(108,029)	(156,827)	(335,979)	(192,645)	69,182
Purchase of goods and services	282,817	342,253	313,312	421,124	419,263	452,477
Release of provision	(8,196)	457	(595)	(1,804)	(605)	299
Release of provisions covering pension benefits	(1,116)	(1,613)	-	-	-	-
Rentals	5,082	2,178	1,340	(406)	(1,504)	(2,540)
Staff costs	331,677	327,976	385,514	446,705	482,605	462,528
Subsidies to private sector companies	675	-	(375)	-	-	-
Subsidies to public corporations	3,822	1,804	2,804	3,113	5,194	3,724
Take up of provisions	26,694	100,096	(75,279)	(4,044)	34,261	24,031
Unwinding of discount rate on pension scheme liabilities	32,978	32,876	43,854	55,158	57,110	47,555
Change in pension scheme liabilities	29,023	40,890	33,176	16,882	17,854	29,842
Current grants abroad (net)	316	139	246	20,995	20,914	53,288
Current grants to local government (net)	-	-	226	160	1,418	5,374
Capital DEL
Deliver an ambitious industrial strategy	332,426	324,600	354,665	280,633	458,188	602,297
Promote competitive markets and responsible business practices	-	(1)	-	3,826	6,522	8,100
Taking action on climate change and decarbonisation	-	-	(2,222)	-	-	-
Science and Research	787,076	726,867	965,314	2,404,166	2,047,515	3,929,213
Capability	72	905	(535)	4,109	49,232	125,171
Government as Shareholder	62,907	143,658	99,952	78,748	125,266	291,352
Support for the Digital, Broadcasting and Media sectors	157,820	152,337	68,144	111,119	181,403	244,674
Modernising and reforming the work of the Government Functions	6,561	20,299	55,931	74,734	69,016	226,197
Building Digital UK	-	-	44,092	93,028	269,127	573,640
Science and Research (ALB) net	8,958,867	8,457,968	9,267,560	9,361,266	9,935,707	8,644,969
Capability (ALB) net	2,298	3,558	3,313	4,162	1,793	-
Government as Shareholder (ALB) net	-	19,050	5,541	14,650	8,589	20,000
Broadcasting and Media ALB (net)	22,964	15,691	10,565	7,817	4,319	5,873
Science and Research (CFER)	-	(2,091)	-	-	-	(2,000)
Total Capital DEL	10,330,991	9,862,841	10,872,320	12,438,258	13,156,677	14,669,486
Of which:
Current grants to persons and non-profit (net)	7,181,482	7,052,098	7,554,989	8,624,429	9,661,992	9,410,212
Income from sales of assets	(27,395)	(9,732)	(8,761)	(7,109)	(5,033)	-
Income from sales of goods and services	(218,291)	(262,021)	(158,598)	(605,383)	(786,891)	(602,485)
Net lending to the private sector and abroad	63,388	50,281	15,560	(14,655)	52,706	13,316
Other capital	(58,687)	(95,067)	(19,384)	(222,134)	(37,912)	20,632
Purchase of assets	403,974	376,311	348,354	384,498	438,727	77,483
Purchase of goods and services	741,948	778,972	838,990	961,962	1,183,769	1,515,889
Staff costs	534,014	584,153	595,804	679,688	741,112	497,522
Subsidies to public corporations	21	31	22	7	-	-
Take up of provisions	-	-	-	-	163	-
Capital grants abroad (net)	273,514	286,878	306,522	291,238	269,607	-
Capital grants to persons and non-profit (net)	845,632	500,812	664,232	606,648	(62,256)	57,672
Capital grants to private sector companies (net)	32,104	53,361	94,686	191,724	253,205	579,290
Capital support for local government (net)	111,208	49,736	5,141	17,375	1,147	-
Capital support for public corporations	46,184	84,736	36,486	1,776	(5,369)	34,184
Current grants abroad (net)	401,895	412,292	598,277	1,528,194	1,451,710	3,065,771
Capital AME
Deliver an ambitious industrial strategy	-	-	-	-	(2)	-
Science and Research	1,247	1,271	1,266	-	-	260
Capability	-	144	-	-	-	-
Deliver an ambitious industrial strategy (ALB) net	(8,954)	(13,310)	4,140	(935)	(50,974)	-
Science and Research (ALB) net	(49,669)	(55,125)	(73,901)	(103,987)	(107,559)	-
Total Capital AME	(57,376)	(67,020)	(68,495)	(104,922)	(158,535)	260
Of which:
Net lending to the private sector and abroad	(8,954)	(13,310)	4,140	(935)	(50,974)	-
Other capital	(35,699)	(37,878)	(55,574)	(89,967)	(95,956)	260
Purchase of goods and services	7,090	1,173	1,208	(1,070)	(86)	-
Staff costs	(19,813)	(17,149)	(18,269)	(12,950)	(11,519)	-
Take up of provisions	-	144	-	-	-	-
Total Capital Budget	10,273,615	9,795,821	10,803,825	12,333,336	12,998,142	14,669,746
Of which:
Current grants to persons and non-profit (net)	7,181,482	7,052,098	7,554,989	8,624,429	9,661,992	9,410,212
Income from sales of assets	(27,395)	(9,732)	(8,761)	(7,109)	(5,033)	-
Income from sales of goods and services	(218,291)	(262,021)	(158,598)	(605,383)	(786,891)	(602,485)
Net lending to the private sector and abroad	54,434	36,971	19,700	(15,590)	1,732	13,316
Other capital	(94,386)	(132,945)	(74,958)	(312,101)	(133,868)	20,892
Purchase of assets	403,974	376,311	348,354	384,498	438,727	77,483
Purchase of goods and services	749,038	780,145	840,198	960,892	1,183,682	1,515,889
Staff costs	514,201	567,004	577,535	666,738	729,593	497,522
Subsidies to public corporations	21	31	22	7	-	-
Take up of provisions	-	144	-	-	163	-
Capital grants abroad (net)	273,514	286,878	306,522	291,238	269,607	-
Capital grants to persons and non-profit (net)	845,632	500,812	664,232	606,648	(62,255)	57,672
Capital grants to private sector companies (net)	32,104	53,361	94,686	191,724	253,205	579,290
Capital support for local government (net)	111,208	49,736	5,141	17,375	1,147	-
Capital support for public corporations	46,184	84,736	36,486	1,776	(5,369)	34,184
Current grants abroad (net)	401,895	412,292	598,277	1,528,194	1,451,710	3,065,771
Total Departmental Spending	10,764,524	10,401,473	11,357,331	12,958,966	13,848,488	15,920,268
Total DEL	10,675,335	10,176,402	11,266,126	12,892,486	13,691,681	15,289,693
Total AME	89,189	225,071	91,205	66,480	156,807	630,575

Table 2 – Administration Budget

	2020–21 Outturn restated £’000	2021–22 Outturn restated £’000	2022–23 Outturn restated £’000	2023–24 Outturn restated £’000	2024–25 Outturn £’000	2025–26 Planned £’000
Resource DEL
Science and Research	-	-	-	-	1,112	-
Capability	109,942	93,178	131,046	162,871	208,509	256,614
Support for the Digital, Broadcasting and Media sectors	33,627	28,714	31,366	33,483	39,274	60,993
Modernising and reforming the work of the Government Functions	1,088	485	21,886	29,191	44,580	47,692
Science and Research (ALB) net	7,120	6,182	4,064	71	62	-
Capability (ALB) net	11,103	12,379	50,348	3,171	8,726	1
Broadcasting and Media ALB (net)	12,904	11,432	15,822	25,251	7,992	11,470
Total Administration Budget	175,784	152,370	254,532	254,038	310,255	376,770
Of which:
Current grants to persons and non-profit (net)	2	24	106	744	334	-
Depreciation	20,683	18,821	22,063	16,345	24,809	28,604
Income from sales of goods and services	(53,614)	(62,045)	(2,124)	(4,942)	(844)	-
Net public service pensions	(3)	-	-	-	-	-
Other resource	(31,585)	(30,172)	(59,803)	(124,990)	(18,309)	-
Purchase of goods and services	69,159	71,898	96,760	119,615	125,234	178,070
Rentals	6,105	321	1,258	1,807	472	-
Staff costs	164,918	153,436	196,052	245,313	178,177	170,096
Take up of provisions	-	-	42	-	26	-
Change in pension scheme liabilities	18	4	10	-	259	-
Current grants abroad (net)	101	83	168	146	97	-

Question 7

Annex B: Financial information by arm’s length bodies

Accepted Answer

The table below shows the total operating income, total operating expenditure, net expenditure for the year, and staff numbers and costs for each of our ALBs.

The figures below will not tie directly to the published ALB accounts as they include some adjustments which would have been captured in the ALB’s accounts in the previous year.

Table: Financial information by ALB, 2024–25

	Total Operating income £m	Total Operating expenditure £m	Net expenditure for the year (including financing) £m	Permanent employed staff Number of employees	Permanent employed staff Staff costs £m	Other staff Number of employees	Other staff Staff costs £m
Core department	(134)	13,577	13,546	3,024	235	152	27
UK Space Agency	(3)	620	617	307	24	1	5
Building Digital UK	(1)	313	312	267	20	25	5
Diamond Light Source Ltd	(164)	125	(39)	749	58	115	2
Harwell Science and Innovation Campus Public Sector Limited Partnership	-	-	(52)	-	-	-	-
UK SBS Ltd	(71)	71	-	670	35	66	4
National Endowment for Science Technology and the Arts	(3)	9	5	-	-	-	-
British Technology Investments Ltd	-	10	1	-	-	-	-
The Office of Communications	(210)	209	(1)	1,557	139	-	2
Advanced Research and Invention Agency (ARIA)	-	31	31	29	5	14	1
Information Commissioners Office	(76)	91	15	1,024	71	5	1
UKRI¹	(925)	10,826	9,696	7,704	572	1,585	47
Consolidation adjustments	211	(10,177)	(9,800)	1	(1)	-	(1)
Total DSIT group	(1,376)	15,705	14,331	15,332	1,158	1,963	93

Notes

Note that the UKRI figures do not contain intra-group UKRI eliminations, as these are shown within the total Consolidation Adjustments row.

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Consolidated statement of comprehensive net expenditure for the year ended 31 March 2025

Consolidated statement of financial position as at 31 March 2025

Consolidated statement of cash flows for the period ended 31 March 2025

Statement of changes in taxpayers’ equity for the period ended 31 March 2025

Notes to the accounts

1. Accounting policies

1.1 Basis of accounting

1.2 Accounting convention

1.3 Presentational currency

1.4 Basis of consolidation

1.5 Machinery of government changes

1.6 Changes in accounting policies

1.7 New accounting standards adopted in the year and FREM changes

1.8 Applicable accounting standards issued but not yet adopted

1.9 Operating income

1.10 Staff costs

1.11 Grants payable

1.12 Taxation

1.13 Foreign currency

1.14 Property, Plant and Equipment (PPE)

1.15 Intangible non-current assets

1.16 Impairment of PPE and intangible non-current assets

1.17 Cash and cash equivalents

1.18 Leases

1.19 Subsidiaries, associates and joint ventures

1.20 Financial instruments

1.21 Hedge accounting under IFRS 9 Financial Instruments

1.22 Pensions

1.23 Provisions

1.24 Contingent assets and liabilities

1.25 Third party assets

1.26 Significant judgements

2. Reporting by operating segment

3. Staff costs

4. Operating expenditure

4.1 Purchase of goods and services

4.2 Depreciation and Impairment

4.3 Grants expenditure

5. Income

5.1 Operating income

5.2 Finance income

6. Property, plant, and equipment

7. Right of use assets

8. Intangible assets

9. Investments and loans in other public sector bodies

9.1 Ordinary shares

9.2 Public dividend capital

9.3 Other investments and loans

10. Other financial assets

10.1 Other financial assets: Analysis

11. Investments in joint ventures and associates

12. Trade and other receivables

13. Cash and cash equivalents

14. Trade payables, financial, and other liabilities

15. Lease liabilities

16. Provisions for liabilities and charges

16.1 Provisions analysis

17. Retirement benefit obligations

Departmental group

18. Capital and other financial commitments

A number of contracts now identified as cancellable have been removed from the 31 March 2024 position.

18.1 Capital commitments

18.2 Other financial commitments

19. Financial instruments

Financial risk management

20. Derivative financial instruments

21. Contingent liabilities

21.1 Unquantifiable contingent liabilities

21.2 Quantifiable contingent liabilities

22. Related-party transactions

23. Restatements of SOFP and SOCNE as a result of machinery of government changes and other restatements

24. List of bodies in the DSIT group

25. Events after the reporting period

Non-adjusting events

25.1 Date accounts authorised for issue

Annexes

Annex A: Common core tables

Annex B: Financial information by arm’s length bodies

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