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MPs launch inquiry into creation of public bodies and their governance

A Parliamentary committee has launched an inquiry into the governance and transparency of public bodies and whether the Cabinet Office's guidance on setting up new bodies should be reviewed.

Announcing the inquiry today, the Chair of the Public Administration and Constitutional Affairs Committee (PACAC), Simon Hoare MP, said the committee would consider "whether the approach of governments to managing the vast, complex network of all public bodies is up to scratch".

According to the committee, MPs will explore what oversight the Cabinet Office and other bodies have over public bodies and whether that is sufficient for holding the organisations to account.

MPs will also examine actions taken and the lessons learnt from the previous Government's Review Programme.

A statement from the committee claimed that "some eyebrows have been raised" by the fact there is no consolidated list of public bodies published by the Government, although it is estimated that around 500 exist.

It added: "These range from huge organisations such as NHS England or the Environment Agency, employing thousands of staff and responsible for spending billions, to small advisory bodies such as the House of Lords Appointment Committee, with only a handful of staff and no significant budget."

The committee is inviting written evidence on the following questions:

  • What is the Government's policy on public bodies and where in Government should it reside? 
  • What oversight of the overall landscape of public bodies should the Cabinet Office exercise? 
  • What lessons have been learnt from the previous Government's Public Bodies Review Programme, and what actions are being taken as a result?
  • Are there adequate governance and transparency requirements set out for all types of public bodies and are they applied consistently?
  • Are the three tests applied to whether public bodies should continue or new ones be established appropriate? Are they applied consistently?
  • What formal and informal means do ministers have to influence public bodies' work and are these deployed appropriately? 
  • Where should ministerial attention best be directed? 
  • Is oversight by other bodies such as Parliament sufficient?

Simon Hoare said: "What this inquiry is seeking to understand is whether the approach of governments to managing the vast, complex network of all public bodies is up to scratch.

"Public bodies are often viewed as benign, yet they are responsible for an enormous amount of policy and spending while the most senior decision-makers often remain unknown to the vast majority of the public."

He added: "While many have argued there is an alarming lack of accountability for the work they do, there are also concerns of mission creep as initially focussed remits end up expanding into other areas."

The deadline for submissions is 7 February.

Adam Carey