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.

Clear

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

6 items
3 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Publish departmental board terms of reference and individual non-executive board member responsibilities annually.

We recommend that each Government department make public the terms of reference for their departmental boards, including the individual roles and responsibilities of each non-executive board member. These should be published on GOV.UK and updated annually, or sooner if there are changes in board membership.

Government response. The government agreed that roles and responsibilities of NEBMs should be published for transparency, suggesting this occurs as part of their biographies on departmental websites rather than requiring full departmental board terms of reference to be made public.
13 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Confirm GOV.UK Non-Executive Director list is updated and require annual updates with appointment years.

The Cabinet Office should confirm in their response to this Report that the list of NEDs by department has been updated on GOV.UK, given this transparency data is now two years out of date. In addition to their names and department, we recommend that this list includes the year that …

Government response. The government confirms the latest list of NEBMs was in the Lead Non-Executive Annual Report and commits to publishing a supplementary list twice annually, addressing the call for more frequent updates but not explicitly confirming the inclusion of appointment years …
15 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Confirm timeline for regulating NED appointments and class Lead Non-Executive as significant appointment.

The Cabinet Office should confirm in its response to this Report the timeline for implementing the CSPL recommendation that NED appointments should be regulated by the Commissioner for Public Appointments. This should apply to all NED appointments in Government departments. We also recommend that the position of Government Lead Non-Executive …

Government response. The government has implemented the regulation of NEBM appointments by updating the Public Appointments Order in Council. However, the classification of the Government Lead Non-Executive position as a 'significant appointment' will be considered during the next refresh of the Significant …
16 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Continue and expand annual reporting on departmental Non-Executive Director diversity, including ethnicity data.

The Committee notes that the latest Government Lead Non-Executive Report for 2021–22 shows a drop in female representation on departmental boards since 2020– 21, and we are particularly concerned by the absence of any data on black, Asian, and minority ethnic representation this year. We note that the Government has …

Government response. The government agrees to include ethnic minority representation data in the Government Lead Non-Executive Report where it is made available, but will not mandate disclosure. The Commissioner for Public Appointments will also monitor and publish department diversity data annually.
21 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Mandate ministerial board training and require departments to list board evaluation actions

The effective use of departmental boards requires sufficient ministerial interest and regular scrutiny. Secretaries of State should undertake mandatory training, with the Prime Minister’s sponsorship, on their role chairing quarterly board meetings, how to work with NEDs, and how to run a departmental board effectively. Departments should also list specific …

Government response. The government accepts in part, stating that Lead Non-Executives, supported by NEBMs, should support Secretaries of State in running effective boards, and will provide supporting guidance. They will also encourage all departments to list actions from board effectiveness evaluations in …
23 Recommendation Seventh Report - The Role of Non-Execut… Accepted in Part

Publish updated Governance Code, board terms of reference, minutes, and Lead NED reports

In chapter two in this Report, we recommend that the Government publishes an updated Corporate Governance Code and terms of reference for each departmental board to provide greater transparency on the individual responsibilities of NEDs. In addition to this, we recommend routine publishing of board minutes on GOV.UK after each …

Government response. The government agrees to publish terms of reference for departmental boards and the responsibilities of NEBMs. However, they reject the routine publishing of board minutes and will only consider improvements to the Corporate Governance Code, while indicating an October deadline …

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