Cabinet Office

The Government are launching today a recruitment campaign for three new independent members to join the commission, to ensure a strong independent majority. The commission otherwise takes on the existing members and governance structure of the Committee on Standards in Public Life. The commission also inherits CSPL’s mandate to be the custodians of the seven principles of public life, and to report to Government on how arrangements to uphold standards in public life can be strengthened in specific areas.

The Prime Minister has today reissued the ministerial code to implement reforms in relation to ministerial severance payments and changes to the operation of the business appointment rules.

The ministerial code makes it clear that Ministers will be expected to forgo their severance if they leave office having served less than six months, or if they leave office following a serious breach of the ministerial code. Similarly, the new code states that if a former Minister is reappointed to a ministerial office within three months of leaving, they will be expected to waive their salary for the period that overlaps with their severance payment.

The updated code and terms of reference for the independent adviser on ministerial standards also reflect changes to the operation of the business appointment rules for former Ministers. From today, advice under the rules will be provided by the independent adviser, and the Prime Minister may ask former Ministers to repay their severance payment if they are found to have seriously breached the business appointment rules.

One further change to the ministerial code is that the Cabinet Office will advise the Prime Minister before any decision to establish a public inquiry is taken, and before the terms of reference are agreed. This is to ensure decisions are well judged and proportionate, and that inquiries focus on finding the right answers and help effect change.

The Advisory Committee on Business Appointments has now closed. From today, its function to provide independent advice on the application of the business appointment rules in respect of the most senior civil servants and special advisers is transferred to the Civil Service Commission. Similarly, ACOBA’s function to provide independent advice in respect of former Ministers is from today transferred to the Prime Minister’s independent adviser on ministerial standards, Sir Laurie Magnus, who already provides independent advice to the Prime Minister on adherence to the ministerial code, and to individual Ministers on the appropriate management of their private interests while in office.

This structural change is accompanied by wider reforms to strengthen and streamline the system and enhance compliance. As set out above, in the event of a serious breach of the business appointment rules, Ministers will now be expected to repay any severance payment they have received. To improve the consistency of the application of the rules in Departments, the Civil Service Commission, which already audits Departments for compliance with the civil service recruitment principles, will undertake regular audits of departmental decisions on business appointment applications for grades below the level currently administered by ACOBA. This enhanced sanction and oversight will be underpinned by a more efficient and responsive system, focused on ensuring applicants understand their obligations under the rules. New guidance on the system has been published on www.gov.uk today to reflect these changes.

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