Source · Select Committees · Public Accounts Committee

Recommendation 15

15

Explicit standards of independence for NEDs are lacking; political donations not tracked.

Recommendation
We questioned the witnesses about what standards of independence they would expect from NEDs, in particular how independent they should be from ministers with whom they will be working. The Cabinet Office told us that this is not set out explicitly and that it is a judgment call. It further clarified that “independence”, in this context, does not mean that they should be immune from politics, but it should be declared. The Cabinet Office told us that it relies on self-declaration. The Cabinet Office noted that about 3% of regulated public appointments have a declared political allegiance.25 We further questioned the witnesses about whether NEDs could be political donors. The Cabinet Office told us that appointees would be expected to declare donations above £5,000 (from 1 January 2024 the limit was set at £11,180).26 When we asked how many had done so, it told us that it did not track that information specifically. The Cabinet Office noted that public appointees are bound to follow the Code of Conduct for Board Members of Public Bodies and there is an expectation that they will abide by the Nolan principles.27
Government Response

A response document is linked to this report, dated 11 July 2025. Response attribution to this conclusion has not been verified. Read the response document ↗