Source · Select Committees · Business and Trade Committee
Recommendation 1
1
Accepted
Paragraph: 30
The CMA is highly regarded by many practitioners and stakeholders, including internationally.
Recommendation
The CMA is highly regarded by many practitioners and stakeholders, including internationally. In particular, the calibre and expertise of staff has been commended throughout this inquiry. However, we recognise the concerns raised in our inquiry about the level of involvement of the CMA Board and the transparency of its decision making. We therefore call on the CMA to engage its Board more proactively in senior decision-making and to publish more detail about its priority areas of work.
Government Response Summary
The CMA outlines existing mechanisms for Board involvement in decision-making, reporting, and strategic priorities, and claims they are already addressing the need for more proactive engagement and transparency.
Paragraph Reference:
30
Government Response
Accepted
HM Government
Accepted
The CMA Board’s responsibilities are set out in legislation. Certain decisions, including some in relation to markets work, the Annual Plan and rules of procedure for certain processes, are reserved to the Board. Conversely, the Board is precluded by statute from taking certain case-specific decisions, such as those in a phase 2 merger investigation where an Inquiry Group is appointed comprising CMA Panel members. Although some 12 Post pandemic economic growth: State aid and post-Brexit competition policy: Government Response other decision-making is delegated by the Board to relevant individuals or committees, this is clearly recorded in the terms of references of the committees and the CMA board authorisations (as issued by the Chair). Even when authority is delegated, the Board remains accountable, and the CMA has effective reporting and update mechanisms that allow the Board to hold the organisation to account. Further, matters that are delegated can be escalated to the Board for decisions in appropriate cases. The incoming Chair has reviewed the arrangements for Board scrutiny of decisions on case selection and the balance of the portfolio. Steps have been taken to ensure Board agendas cover strategy, policy, portfolio and cases at each meeting. To strengthen the link between strategic priorities set by the Board and the choices the CMA makes about the work in its portfolio, how the CMA oversees and manages its pipeline and prioritisation has also been reworked. As a result, the new Chair of the Board now takes a more active and expanded role in the pipeline and prioritisation process. In addition, the draft Annual Plan, which was published for consultation in December, aims to provide a greater degree of transparency in relation to how the CMA will prioritise its work. In the Plan, we explain how the CMA has arrived at a new proposed set of medium-term priorities and areas of focus for 2023/24. Alongside the CMA’s new proposed strategy, it is also taking a fresh approach to engagement with stakeholders. This includes spending time with a wider range of consumer, business and third sector groups across all four nations of the UK, and more frequent engagement with key stakeholders than before.