Source · Select Committees · Public Administration and Constitutional Affairs Committee
Seventh Report - The Role of Non-Executive Directors in Government
Public Administration and Constitutional Affairs Committee
HC 318
Published 20 June 2023
Recommendations
3
Accepted in Part
Para 20
Publish departmental board terms of reference and individual non-executive board member responsibilities annually.
Recommendation
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 …
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Government Response Summary
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
Accepted in Part
Para 52
Confirm GOV.UK Non-Executive Director list is updated and require annual updates with appointment years.
Recommendation
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Report that the list of NEDs by department has been updated on GOV.UK, given this transparency data is now two years out of date.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 …
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Government Response Summary
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 on GOV.UK.
15
Accepted in Part
Para 54
Confirm timeline for regulating NED appointments and class Lead Non-Executive as significant appointment.
Recommendation
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. …
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Government Response Summary
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 Appointments list.
16
Accepted in Part
Para 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 …
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Government Response Summary
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
Accepted in Part
Para 71
Mandate ministerial board training and require departments to list board evaluation actions
Recommendation
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 …
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Government Response Summary
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 annual reports, rather than mandating it, differing from mandatory training for SoS.
23
Accepted in Part
Publish updated Governance Code, board terms of reference, minutes, and Lead NED reports
Recommendation
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 …
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Government Response Summary
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 for the Government Lead Non-Executive report rather than the recommended August.