Source · Select Committees · Public Administration and Constitutional Affairs Committee
Recommendation 16
16
Accepted in Part
Paragraph: 55
Continue and expand annual reporting on departmental Non-Executive Director diversity, including ethnicity data.
Recommendation
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 never reported on any characteristics beyond gender and ethnicity. The Government Lead Non-Executive should continue to report on the diversity of NEDs in terms of 36 The Role of Non-Executive Directors in Government gender and ethnicity at a minimum in the Annual Report. We also encourage the Government to consider what other metrics on diversity could be included in this Report.
Government response summary AI-generated
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.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
55
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
We agree that the Government Lead Non-Executive Report should include data on ethnic minority representation. In respect of the report for 2021-22, the data was not sufficiently disclosed to allow for reporting. We will not mandate NEBMs to disclose data which they would prefer to remain private. We will endeavour to report data where it is made available, including geographic diversity. Now that appointments are regulated, the Commissioner for Public Appointments will monitor department diversity data and publish data as part of the annual process, in addition to specific data published by Lead NEBM. The regulated appointment process will also be covered by the diversity action plan that is owned by the Cabinet Office and will benefit from interventions contained within that. The consensus from oral witnesses to the inquiry, including the current Government Lead Non-Executive, was that NEDs and boards have a role to play in providing continuity and corporate memory between new Ministers and administrations. While we recognise that the Secretary of State maintains the final decision over the composition of their board, there should nonetheless be a presumption against the automatic removal of all serving non-executive board members upon appointment. An updated Corporate Governance Code should set out the value of NEDs in providing corporate memory and expertise in periods of transition between Ministers and administrations, and the expectation that Ministers should avoid replacing all departmental NEDs on appointment. Moreover, it should clarify that if they do so, departments must set out the reasons justifying their decision in the governance statements of departments’ annual reports.
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