The Role of Non-Executive Directors in Government

Public Administration and Constitutional Affairs Committee Closed Inquiry
Opened: 7 Jun 2022 Closed: 9 Oct 2023 Parliament page
Non-executive directors (NEDs) have existed in Government departments in their current form since 2010, but little is known about their roles and impact. The aim of this inquiry is to explore the responsibilities, backgrounds, and influence of non-executives, as well as the appointments process, appropriate roles, and mechanisms for accountability. Read more
21 Recommendations
6 Conclusions
1 Report
3 Oral sessions
1 Letter
3 Events
Activity timeline 9 events
8 Sep
2023
Report published
20 Jun
2023
Report published
7 Feb
2023
Correspondence
17 Jan
2023
Oral evidence
17 Jan
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
8 Nov
2022
Oral evidence
8 Nov
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
19 Jul
2022
Oral evidence
19 Jul
2022
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 3 sessions
17 Jan 2023
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The Role of Non-Executive Directors in Government
Michael Jary · Cabinet Office Rt Hon Jeremy Quin MP · Cabinet Office
8 Nov 2022
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The Role of Non-Executive Directors in Government
Dame Sue Street DCB · Ministry of Justice Miranda Curtis CMG · Foreign and Commonwealth Office Sir Ian Cheshire · Channel 4
19 Jul 2022
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The Role of Non-Executive Directors in Government Session: 2022-23 Inquiry
Alan Cogbill · Constitution Unit, University College London Dr Matthew Gill · Institute for Government Mr Martin Wheatley · Commission for Smart Government
Title HC No. Published Items Response
Seventh Report - The Role of Non-Executive Directors in Governme… HC 318 20 Jun 2023 27 Responded
Recommendations & Conclusions
7 results
Clear
1 Recommendation Acknowledged
Seventh Report - The Role of Non-E…
Increase public accountability and clarity regarding non-executive board members' purpose and activities.
Non-executive board members were brought in in their current form in 2010 to “make Government operate in a more business-like manner”. However, it is unclear whether the corporate governance of Whitehall still sits at the centre of their purpose and … Read more
Government Response
The government acknowledges the need for consistency and public accountability for NEDs, stating it has taken steps and will continue to embed this approach. Further adjustments will be considered alongside Lord Maude’s review, maintaining departmental flexibility, and guidance will be provided for Lead Non-Executives to support Secretaries of State.
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4 Conclusion Acknowledged
Seventh Report - The Role of Non-E…
Lord Maude's review of non-executive directors and boards remains significantly overdue.
The Government’s commitment to review the appropriate role for NEDs and departmental boards, as part of the broader Governance and Accountability Review being led by the Rt. Hon. Lord Maude of Horsham, is welcome. However, the Committee is disappointed that … Read more
Government Response
The government acknowledged the delay in Lord Maude’s Review of Governance and Accountability, stating that additional time was granted for full consideration, and the Cabinet Office expects to receive and publish the final findings in the near future.
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7 Conclusion Acknowledged
Seventh Report - The Role of Non-E…
Non-executive directors' power to remove Permanent Secretaries requires genuine independence.
Furthermore, the Committee considers that the power of NEDs, currently included in the Corporate Governance Code, to be able to recommend to the Prime Minister, Secretary of State, and Cabinet Secretary that the Permanent Secretary be removed from their post … Read more
Government Response
The government acknowledged that NEBMs are able to recommend the removal of a Permanent Secretary and affirmed that NEBMs adhere to the Seven Principles of Public Life, acting impartially and on merit.
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18 Recommendation Acknowledged
Seventh Report - The Role of Non-E…
Confirm consistent policy for Non-Executive Director numbers related to department size and remit
The number of NEDs per department is variable. We believe there should be common standards underpinning the rationale for the number of NEDs per department in the interests of consistency and good governance. The Government should confirm in response to … Read more
Government Response
The government states it will continue to improve consistency and will consider additional adjustments alongside Lord Maude’s review. While it highlights the need for departmental flexibility regarding NED numbers, it commits to updating or replacing the Corporate Governance Code by the end of the calendar year to define NED roles and tasks.
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22 Recommendation Acknowledged
Seventh Report - The Role of Non-E…
Increase public availability of information regarding Non-Executive Director roles and responsibilities
Given that non-executives in Government departments, unlike their private sector equivalents, operate in an advisory capacity only, the Committee does not believe that NEDs should have more formal accountability to Parliament. However, there should be more information in the public … Read more
Government Response
The government acknowledges the committee's feedback and states it will consider whether the Corporate Governance Code would benefit from changes to improve transparency around NEDs' roles and responsibilities.
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24 Conclusion Acknowledged
Seventh Report - The Role of Non-E…
Departments demonstrate lack of consistency and transparency in managing conflicts of interest
We are concerned by the lack of consistency and transparency in how departments manage any real or perceived conflicts of interests. This includes a wide variation in how information is reported in departments’ annual report and accounts and a lack … Read more
Government Response
The government agrees that a common and consistent format for registers of board members' interests would be welcome and notes that conflicts should be disclosed and managed internally, with public disclosure periodically via departmental websites.
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25 Recommendation Acknowledged
Seventh Report - The Role of Non-E…
Publish departmental board members' registers of interests and monitor conflict management clarity
We recommend that departments’ registers of board members’ interests be published on GOV.UK, as well as included in departments’ annual reports and accounts. These should be published in a consistent format, updated every six months, and include any relevant non-financial … Read more
Government Response
The government agrees that a common and consistent format for registers of interests would be welcome but does not commit to the recommended frequency of six months or specific publication on GOV.UK, instead stating periodic publication via departmental websites.
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Government Response AI assessment · 27 of 21 classified
Accepted 4
Accepted in Part 6
Acknowledged 7
Deferred 3
Not Addressed 1
Rejected 6
Total 21 recs + 6 conclusions
Correspondence 1 letter
7 Feb 2023 To committee Letter from Rt Hon Jeremy Quin MP on the role of Non-Executive Directors, dated 31.1.23
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