UK Government acts on Arms Length Bodies!
The UK Government HM Treasury budget statement and reports includes a report titled: Reforming Arm’s Length Bodies. References: ISBN 978-1-84532-678-4. PU954. Date: March 2010. Pages: 36.
Page 5 of the report Introduction opens with the following statement that refers to two Public Sector Information Holders:
“Arm’s length bodies in UK Government
1.1 The United Kingdom has a long history of using arm’s length bodies to deliver public services: the Met Office was created in 1854 and the Ordnance Survey was established in 1791.”
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The Government report sets out five recommendations summarised in the Executive summary:
“This document sets out a wide-ranging series of measures that will achieve this reform of ALBs, improving value for money and ensuring public services can be delivered more effectively at the same time.
- first, the Government will save £500m by 2012-13 from ALBs. The number of ALBs will be reduced by over 120. The Government will mutualise British Waterways to give waterways' users greater involvement in management of this asset. In addition, the Government will consider proposals to introduce a Bill at the earliest opportunity to enable further obsolete bodies to be wound up and functions to be stopped;
- second, the Government will create a new hurdle that departments must overcome in order to propose a new ALB. A new ALB must be absolutely the last option. The justification for new ALBs will be published so that the public can hold the Government to account for the decision. There should be a presumption that any legislation creating an ALB includes a ‘sunset clause’ to make sure it does not outlive its useful function;
- third, ALBs will face new restrictions on using lobbying or PR consultants. Duplication of any function between ALBs and departments will be cut;
- fourth, to enable the public to see how efficiently ALBs spend public money – and the proportion that goes on staff costs and back office functions – ALBs will comply with new requirements of transparency; and
- finally, the Government will ensure all ALB boards have the right skills and composition to drive value for money and challenge performance. There will be tough sanctions for failure at board level, including potentially extending the Company Directors Disqualification Act to ALB Chairs and Chief Executives.”
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