Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask His Majesty's Government what steps they are taking to protect the interests of the residents and taxpayers of Birmingham following the recent announcement about that city's bankruptcy.
Answered by Lord Evans of Rainow - Lord in Waiting (HM Household) (Whip)
The Secretary of State, on 5 October 2023, confirmed his final decision to intervene at Birmingham City Council to protect residents and taxpayers in the city. He is satisfied that there is evidence of Best Value failure and that intervention is necessary for Birmingham to secure compliance with the Best Value Duty under the Local Government Act 1999. This follows consideration of representations received on the proposed intervention package which was announced to Parliament on Tuesday 19 September.
A team of six commissioners will be led by Max Caller CBE, an experienced local government professional and former commissioner, and will be able to provide advice and challenge the council whilst making decisions directly, if necessary. They will have powers relating to governance, finance and recruitment and bring expertise in local government improvement, finance, HR, equal pay, housing, ICT and commercial projects. They will be joined by Lord John Hutton, a former Defence Secretary and Business Secretary under a previous Government, and former Mayor of Tower Hamlets John Biggs, as political advisors to support the political leadership as they take the difficult decisions that will be required. Directions have also been issued to the Council requiring them to take specific actions, including the preparation and agreement of an improvement plan within six months and to review all corporate services within twelve months, to ensure that public trust in the Authority is restored. Commissioners and the Directions will be in place for a five-year period subject to any further decisions by the Secretary of State.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government whether maintaining trust in audit remains a priority for them; and, following Carillion and Patisserie Valerie’s collapse, what assessment they have made of the extent to which reducing the risk of corporate failure is a national priority.
Answered by Earl of Minto - Minister of State (Ministry of Defence)
The Prime Minister set out his five priorities earlier this year. The Department's work to increase trust in the UK's audit, corporate reporting and corporate governance system contributes to the second priority, growing the British economy, in part by helping to manage risks that could lead to disorderly corporate failures.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how many civil servants worked on legislative proposals relating to audit reform in each of the last five years.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The table below gives the number of officials in the Department working on legislative proposals relating to reform of audit and associated legislative reforms of corporate governance, in September of each of the last five years. Figures for 2019-21 are estimates based on information readily available.
September 2019 | c. 20 |
September 2020 | c. 15 |
September 2021 | c. 21 |
September 2022 | 19 |
September 2023 | 15 |
Asked by: Philip Davies (Conservative - Shipley)
Question to the Department for Education:
To ask the Secretary of State for Education, how many and what proportion of (a) board members and (b) employees of Ofsted have previous experience in the sector that they regulate.
Answered by Nick Gibb
The role of Ofsted’s chair and non-executive board is to determine strategic priorities, objectives and targets for Ofsted, and to provide challenge and support in relation to the inspectorate’s overall work and performance.
Board members are appointed by the Secretary of State and recruitment processes follow the public appointment guidelines. All board members have the appropriate strategic and corporate expertise to perform their roles effectively. That includes board members with experience of working in the sectors in which Ofsted operates, as well as other relevant experience, including of other regulators, other services and third sector organisations that support children and young people. Ofsted’s board membership is set out here: https://www.gov.uk/government/organisations/ofsted/about/our-governance.
Recruitment of Ofsted’s employees is a matter for Ofsted, as a separate government department. I have therefore asked His Majesty’s Chief Inspector, Amanda Spielman, to write to the hon. Member for Shipley directly on this matter. A copy of her reply will be placed in the Libraries of both Houses.
Asked by: Dan Carden (Labour - Liverpool, Walton)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what criteria were used in the job descriptions for the appointment of (a) National Clinical Director and (b) National Specialty Advisor.
Answered by Will Quince
The core criteria for the National Clinical Director and the National Specialty Advisor include but are not limited to:
- knowledge and experience of working in or with the Department, arm’s length bodies and other health organisations
- knowledge of evidence-based policy making and corporate and NHS governance; significant experience of working at a national or sub-national level as a clinical leader
- holds or is willing to work towards Fellowship or Associate Fellowship of the Faculty of Medical Leadership and Management
- able to navigate and negotiate the NHS and the wider health, social care and political landscape
- excellent leadership skills and the ability to build and motivate high performing teams
- educated to degree level in the relevant discipline
- will consider the most effective way to promote equality of opportunity and good working relationships in employment and service delivery and has the ability to take actions which support and promote this agenda
- values diversity and difference operates with integrity and openness
- self-awareness in terms of emotional intelligence, biases and personal triggers with cultural sensitivity and awareness.
Each role will include criteria specific to the individual area of expertise and programme of work the role will support.
Asked by: Jonathan Djanogly (Conservative - Huntingdon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, with reference to the Restoring trust in audit and corporate governance white paper published in March 2021, what steps her Department is taking to establish the new Audit, Reporting and Governance Authority regulator.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government Response to consultation on ‘Restoring Trust in Audit and Corporate Governance’ set out ambitious proposals to improve audit and corporate governance in the UK. Reform is already underway, and the Financial Reporting Council has made significant changes.
Some of the Government’s plans, including the creation of the Audit, Reporting and Governance Authority, require primary legislation. The Government will legislate when Parliamentary time allows.
Asked by: Jonathan Djanogly (Conservative - Huntingdon)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, with reference to the Restoring trust in audit and corporate governance white paper published in March 2021, when the new Audit, Reporting and Governance Authority regulator will be established.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government Response to consultation on ‘Restoring Trust in Audit and Corporate Governance’ set out ambitious proposals to improve audit and corporate governance in the UK. Reform is already underway, and the Financial Reporting Council has made significant changes.
Some of the Government’s plans, including the creation of the Audit, Reporting and Governance Authority, require primary legislation. The Government will legislate when Parliamentary time allows.
Asked by: Sharon Hodgson (Labour - Washington and Sunderland West)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what steps her Department takes to vet the (a) financial interests and (b) potential conflicts of interest of non-executive board members before their appointment.
Answered by George Freeman
In accordance with the code of practice for corporate governance in central government departments, the Department requires non-executive directors to declare sources of renumeration, contracts, shares and securities, non-financial interests, and related party interests that may influence, or may be perceived to influence, their judgement as a board member.
During the recruitment and onboarding process for non-executive directors my department conducts its own due diligence to make sure that office holders meet the standards set out in the code of conduct for board members. The Department reviews any real or potential conflicts of interests declared and publishes these, with any mitigating action taken, in the Department’s annual governance statement.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many officials in his Department work on policies relating to mutual societies.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Treasury allocates resources based on the priorities of the department, and officials within the Financial Services Group of HM Treasury provide advice to ministers on issues related to the mutuals sector. Resourcing is kept under regular review to ensure priorities are delivered.
The government recognises the value that mutuals bring to the UK economy. That is why we are taking appropriate steps to ensure that the legislative framework in which mutuals operate under is both a modern and supportive business environment.
As part of the Financial Services and Markets Bill, the Government is amending existing legislation so that credit unions in Great Britain can offer a wider range of products and services. In due course the government will also bring forward legislation to amend the Building Societies Act 1986, which will give building societies further flexibility in raising funds and modernise corporate governance requirements.
In addition, the government is supporting Sir Mark Hendrick’s Private Member’s Bill which would allow co-operatives, mutual insurers, and friendly societies further flexibility in determining for themselves the best strategies for their business, relating to their surplus capital and restrictions on the use of these assets.
Furthermore, the government is in active discussions with the Law Commission on options to proceed with a review of both the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Act 1992 with a view to launching the reviews in the next financial year.
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, pursuant to the Answer of 15 May to Question 184326 on Foreign, Commonwealth and Development Office: Corporate Governance, on which dates did the two meetings of his Department's Board in financial year 2021-22 take place.
Answered by David Rutley - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
The FCDO Supervisory Board met twice during the financial year 2021-22: on 16 June 2021 (chaired by the Rt Hon Dominic Raab) and on 25 March 2022 (chaired by the Rt Hon Elizabeth Truss). This information is available on page 104 of the FCDO's Annual Report and Accounts for 2021-22: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1095304/FCDO_Annual_Report_2021_2022_Accessible_290722.pdf