Select Committee · Public Administration and Constitutional Affairs Committee

The Role of Non-Executive Directors in Government

Status: Closed Opened: 7 Jun 2022 Closed: 9 Oct 2023 21 recommendations 6 conclusions 1 report

Non-executive directors (NEDs) have existed in Government departments in their current form since 2010, but little is known about their roles and impact. The aim of this inquiry is to explore the responsibilities, backgrounds, and influence of non-executives, as well as the appointments process, appropriate roles, and mechanisms for accountability.

Reports

1 report

Title	HC No.	Published	Items	Response
Seventh Report - The Role of Non-Executive Directors in Gov…	HC 318	20 Jun 2023	27	Responded

Recommendations & Conclusions

4 items

11 Conclusion Seventh Report - The Role of Non-Execut… Accepted

Inconsistent, opaque, and unaccountable recruitment processes for departmental Non-Executive Directors are unsatisfactory.

The Corporate Governance Code stipulates that non-executive board members should be appointed on merit through a fair and open process. The current Government Lead Non-Executive told the Committee that a small proportion of NEDs currently in post have been directly appointed and, since he took on the The Role of …

Government response. The government states that all NEBM appointments now comply with the Governance Code, ensuring transparency and consistency through public appointment processes. They agree that Code departures should be reported and will consider summarising these in the Government Lead Non-Executive's annual …

12 Recommendation Seventh Report - The Role of Non-Execut… Accepted

Ensure full departmental transparency in NED recruitment and require prompt publication of appointment details.

The Government Lead Non-Executive should ensure that every department is fully transparent about the recruitment process for its NEDs and that all departures from the Corporate Governance Code are justified in the governance statements of departments’ annual report and accounts. The Government Lead Non-Executive should work with departments and Ministers …

Government response. The government stated that existing processes address transparency, with departures from the Corporate Governance Code disclosed in annual reports, appointments announced on GOV.UK pages, and adverts published on the Cabinet Office website detailing the process.

14 Conclusion Seventh Report - The Role of Non-Execut… Accepted

Disappointing lack of progress implementing CSPL recommendation for Non-Executive Director appointment regulation.

The Government has indicated that it will implement the Committee on Standards in Public Life’s (CSPL) recommendation that NED appointments should be regulated by the Commissioner for Public Appointments, which we welcome. However, it is disappointing that it appears no progress has been made since the CSPL report was published …

Government response. The government confirms it has met the commitment by updating the Public Appointments Order in Council 2023, which now includes the regulation of non-executive directors to ministerial department boards by the Commissioner for Public Appointments.

26 Recommendation Seventh Report - The Role of Non-Execut… Accepted

Subject the Government Lead Non-Executive to direct parliamentary scrutiny and oversight

The Committee acknowledges the arguments against NEDs being formally accountable to Parliament for any departmental or policy-specific matters, given the potential implications for the principle of ministerial responsibility. However, we believe that the Government Lead Non-Executive, as a quasi-regulator and coordinator of the NED cohort, should be subject to parliamentary …

Government response. The government does not agree with the committee's characterisation of the Government Lead Non-Executive as a quasi-regulator, but notes that GLNEDs have historically appeared before the committee and will continue to make themselves available for scrutiny.

Oral evidence sessions

3 sessions

Date	Witnesses
17 Jan 2023	Michael Jary · Cabinet Office, Rt Hon Jeremy Quin MP · Cabinet Office	View ↗
8 Nov 2022	Dame Sue Street DCB · Ministry of Justice, Miranda Curtis CMG · Foreign and Commonwealth Office, Sir Ian Cheshire · Channel 4	View ↗
19 Jul 2022	Alan Cogbill · Constitution Unit, University College London, Dr Matthew Gill · Institute for Government, Mr Martin Wheatley · Commission for Smart Government	View ↗

Correspondence

1 letter

Date	Direction	Title
7 Feb 2023	To cttee	Letter from Rt Hon Jeremy Quin MP on the role of Non-Executive Directors, dated…

Accepted	4
Accepted in Part	6
Acknowledged	7
Deferred	3
Not Addressed	1
Rejected	6