Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the correspondence entitled DAO 02/25 Updates to Managing Public Money, published on 12 June 2025, what the business case was for the changes of guidance on (a) the propriety of using the Companies Act 2006 to establish Government-owned companies and (b) revisions permitting the setting of delegations by the Treasury for the approval of special severance payments.

The guidance contained in Managing Public Money is produced by the Treasury, and reflects the ongoing dialogue between the Treasury and the Committee of Public Accounts regarding Parliament’s expectations for the use of public money. It also includes operational guidance in the interests of effective administration.

While the government has used the Companies Act and its precursors since their original passage, the position on the propriety of this, and its interaction with the 1932 PAC Concordat, was unclear. Following correspondence between the Treasury Officer of Accounts and the Public Accounts Committee in late 2024, the revised approach was incorporated into the latest edition of Managing Public Money.

Similarly, the introduction of the ability to set delegations for special severance payments supports greater departmental autonomy while maintaining strong standards of financial control.