Source · Select Committees · Public Accounts Committee

Recommendation 5

5 Accepted

Review UKSV's governance structures to enable urgent security vetting transformation programme.

Conclusion
The governance structure of UKSV within Cabinet Office is a barrier to transformation. UKSV’s chief executive and the government chief security officer have low levels of delegated spending authority which means they require approval from the Cabinet Office Approvals Board for any spending over £500,000. That Board has repeatedly refused to give spending approval for the £40 million vetting transformation business case. UKSV’s Chief Executive cited governance around investment and the change agenda as problematic in replacing the legacy system, and three reviews of the transformation programme included governance in their array of concerns about the deliverability of the programme. The Cabinet Office acknowledges that its cautious approach is delaying the much needed and widely supported transformation programme but says that it is better to be cautious than to spend unwisely. Recommendation 5: The Cabinet Office should urgently review UKSV’s governance structures to assess whether they provide the correct balance of challenge and support to enable UKSV to achieve the much-needed security vetting transformation programme. It should summarise the findings of this review in its Treasury Minute response.
Government Response Summary
The government has completed an independent governance review and will implement an enhanced governance structure, including better representation of Cabinet Office functions and customers, and clearer distinctions between policy approval and delivery. Implementation began in June 2023.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented An independent governance review has now been completed. The review endorsed the Committee’s findings, and UKSV will now implement an enhanced governance structure that addresses the observations made by the Committee, National Audit Office and the independent governance review. This includes: • ensuring Cabinet Office corporate functions are fully represented within the UKSV governance structures; • ensuring UKSV customers are represented at both a senior and practitioner level within the structure; • clear distinctions are drawn between policy approval and the management of vetting delivery performance; and • strengthening support for oversight of vetting transformation. Implementation commenced in June 2023 following the relevant approvals from the Government Chief Security Officer and Cabinet Office Corporate Services.