(4) An order under subsection (3) may—

(a) make different provision for different purposes;

(b) include supplementary, incidental, consequential, transitional,

transitory or saving provision.

30 5Extent

(1) Subject to subsection (2), this Act extends to England and Wales, Scotland and

Northern Ireland.

(2) The amendment or repeal of any enactment has the same extent as the

enactment amended or repealed.

31 10Short title

(1) This Act may be cited as the Budget Responsibility and National Audit Act

2011.

(2) Nothing in this Act shall impose any charge on the people or on public

funds, or vary the amount or incidence of or otherwise alter any such charge

15in any manner, or affect the assessment, levying, administration or

application of any money raised by any such charge.

SCHEDULES

Section 3

SCHEDULE 1 Office for Budget Responsibility

Membership

1 (1) 5The Office is to consist of—

(a) a member to chair it, appointed by the Chancellor of the Exchequer

with the consent of the Treasury Committee of the House of

Commons,

(b) 2 other members appointed by the Chancellor of the Exchequer after

10consultation with the member appointed under paragraph (a) and

with the consent of that Committee, and

(c) not fewer than 2 members nominated by the Office and appointed by

the Chancellor of the Exchequer.

(But see paragraph 3, which makes special provision about the appointment

15of the initial members of the Office.)

(2) A person may be appointed under sub-paragraph (1)(a) or (b) only if the

person has knowledge or experience likely to be relevant to the performance

of the Office’s duty under section 4.

Period of appointment and re-appointment

2 (1) 20An appointment under paragraph 1(1)(a) or (b) is to be for a period of 5 years

(but see paragraph 3(5)).

(2) An appointment under paragraph 1(1)(c) is to be for a period of no more

than 5 years.

(3) A person may not be appointed under paragraph 1 more than twice.

25Appointment of initial members

3 (1) The consent of the Treasury Committee of the House of Commons is not

required for the appointment under paragraph 1(1)(a) of a person who—

(a) immediately before the person’s appointment, was chairing the non-

statutory Office for Budget Responsibility, and

(b) 30was appointed to do so by the Chancellor of the Exchequer with the

consent of that Committee.

(2) The period of the person’s appointment under paragraph 1(1)(a) is to be

taken to have begun with the appointment of that person to chair the non-

statutory Office for Budget Responsibility.

(3) The consent of the Treasury Committee of the House of Commons is not

required for the appointment under paragraph 1(1)(b) of a person who—

(a) immediately before the person’s appointment, was a member of the

non-statutory Office for Budget Responsibility but not chairing it,

5and

(b) was appointed as such a member by the Chancellor of the Exchequer

with the consent of that Committee.

(4) The period of appointment under paragraph 1(1)(b) of each such person is

to be taken to have begun with the appointment of that person as a member

10of the non-statutory Office for Budget Responsibility.

(5) The first 2 appointments under paragraph 1(1)(b) may be for less than 5

years to secure that those appointments and the first appointment under

paragraph 1(1)(a) each expire at different times.

(6) The first 2 appointments under paragraph 1(1)(c) are to be made by the

15Chancellor of the Exchequer after consultation with the member appointed

under paragraph 1(1)(a).

Remuneration

4 (1) The Office may, with the approval of the Treasury—

(a) pay, or make provision for paying, to a member of the Office such

20remuneration as the Treasury may determine, and

(b) pay, or make provision for paying, to or in respect of a person who

is or has been a member of the Office any such pension, allowances

or gratuities as the Treasury may determine.

(2) Where—

(a) 25a person ceases to be a member of the Office otherwise than at the

end of the period for which the person was appointed, and

(b) it appears to the Office and the Treasury that there are circumstances

which make it right for the person to receive compensation,

the Office may make a payment to the person of such amount as the

30Treasury may determine.

Other terms of appointment

5 The Chancellor of the Exchequer may determine other terms of an

appointment under paragraph 1.

Termination of appointments

6 (1) 35A member of the Office may resign by giving written notice to the

Chancellor of the Exchequer.

(2) The Chancellor of the Exchequer may terminate the appointment of a

member of the Office by giving the member written notice if—

(a) the member has been absent from meetings of the Office without the

40Office’s permission for a period of more than 3 months,

(b) the member has become bankrupt or has made an arrangement with

creditors,

(c) the member’s estate has been sequestrated in Scotland or the

member has entered into a debt arrangement programme under Part

1 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp

17) as the debtor or has, under Scots law, made a composition or

arrangement with, or granted a trust deed for, the member’s

creditors,

(d) 5the member is unfit to continue the appointment because of

misconduct,

(e) the member has failed to comply with the terms of the appointment,

or

(f) the member is otherwise unable, unfit or unwilling to carry out the

10member’s functions.

(3) But the appointment of a member appointed under paragraph 1(1)(a) or (b)

is not to be terminated without the consent of the Treasury Committee of the

House of Commons.

Status of Office

7 (1) 15The functions of the Office are to be exercised on behalf of the Crown.

(2) For the purposes of any civil proceedings arising out of those functions—

(a) the Crown Proceedings Act 1947 applies to the Office as if it were a

government department, and

(b) the Crown Suits (Scotland) Act 1857 applies to it as if it were a public

20department.

(3) The Office’s property is to be regarded as held on behalf of the Crown.

Employees

8 (1) The Office may employ staff.

(2) Staff are to be employed on such terms as to remuneration and other matters

25as the Office may, with the approval of the Minister for the Civil Service,

determine.

(3) Service as a member of staff of the Office is employment in the civil service

of the State.

(4) The Office must pay to the Minister for the Civil Service, at such times as the

30Minister may direct, such sums as the Minister may determine in respect of

the increase in the sums payable out of money provided by Parliament that

is attributable to the provision of pensions, allowances or gratuities under

section 1 of the Superannuation Act 1972 payable to or in respect of persons

who are or have been members of staff of the Office.

35Committees

9 (1) The members appointed under paragraph 1(1)(a) and (b) constitute a

committee of the Office to be known as the Budget Responsibility

Committee.

(2) The members appointed under paragraph 1(1)(c) constitute a committee of

40the Office to be known as the Non-executive Committee.

10 (1) The Office may establish other committees.

(2) A committee established by the Office may establish sub-committees.

(3) A committee or sub-committee established under this paragraph may

consist of or include persons who are neither members of the Office nor

members of its staff.

(4) Appointment as a member of such a committee or sub-committee of a

5person who is neither a member of the Office nor a member of its staff is to

be on such terms as to remuneration and other matters as the Office may,

with the approval of the Treasury, determine.

Procedure

11 (1) The Office may determine—

(a) 10its own procedure, and

(b) the procedure of any committee or sub-committee established under

paragraph 10.

(2) A committee established by paragraph 9 may determine its own procedure.

Delegation of functions

12 (1) 15The Office may delegate functions to—

(a) any of its members,

(b) any member of its staff, or

(c) any of its committees.

(2) A committee established under paragraph 10 may delegate functions

20(including functions delegated to it) to a sub-committee.

(3) The Budget Responsibility Committee is to perform the duties imposed by

section 4(3) and (4).

(4) Sub-paragraph (1) does not apply to those duties.

(5) The delegation of a function under sub-paragraph (1) or (2) does not prevent

25the Office or the committee (as the case may be) from carrying out the

function itself.

Review by Non-executive Committee

13 The Non-executive Committee must keep under review the way in which

the Office’s duty under section 4 is performed.

30Instruments

14 (1) The application of the Office’s seal is to be authenticated by the signature

of—

(a) a member of the Office, or

(b) any person authorised (whether generally or specifically) for the

35purpose by a member of the Office.

(2) A document purporting to be duly executed under the Office’s seal or

signed on its behalf—

(a) is to be received in evidence, and

(b) is to be taken to be executed or signed in that way, unless the

40contrary is proved.

(3) This paragraph does not extend to Scotland.

Annual report

15 (1) The Office must prepare a report of the performance of its functions in each

financial year.

(2) 5The report must include, in particular, an assessment by the Non-executive

Committee of the extent to which the Office’s duty under section 4 has been

performed in accordance with section 5(1) and (2).

(3) The report relating to a financial year must be prepared as soon as possible

after the end of the financial year.

(4) 10The report must be sent to the Treasury.

(5) The Treasury must lay the report before Parliament.

(6) The Office must publish the report.

(7) “Financial year” means—

(a) the period which begins with the day on which this Schedule comes

15into force and ends with the following 31 March;

(b) each successive period of 12 months.

External review

16 (1) The Non-executive Committee must, at least once in every relevant 5-year

period, appoint a person or body to review and report on such of the Office’s

20reports as the Committee determines.

(2) In sub-paragraph (1) “the Office’s reports” means the reports which—

(a) have been made in pursuance of the Office’s duty under section 4,

and

(b) have been published since the relevant date.

(3) 25The “relevant date” is—

(a) in the case of the first review carried out under this paragraph, 1

October 2010;

(b) in the case of subsequent reviews, the date of the last review carried

out under this paragraph.

(4) 30A person or body may be appointed under this paragraph only if the person

or body has knowledge or experience likely to be relevant to the

performance of the Office’s duty under section 4.

(5) The Office may, with the approval of the Treasury, make payments to the

person or body in respect of the performance of the person’s or body’s

35functions under this paragraph.

(6) The Office must—

(a) publish each report prepared under this paragraph,

(b) lay it before Parliament, and

(c) send a copy of it to the Treasury.

(7) 40In this paragraph “relevant 5-year period” means—

(a) the period of 5 years beginning with 1 October 2010;

(b) each successive period of 5 years.

Finance

17 (1) The Treasury may make to the Office such payments out of money provided

by Parliament as the Treasury considers appropriate for the purpose of

5enabling the Office to meet its expenses.

(2) Payments are to be made at such times, and subject to any such conditions,

as the Treasury considers appropriate.

Accounts and audit

18 (1) The Office must—

(a) 10keep proper accounts and proper records in relation to its accounts,

and

(b) prepare in respect of each financial year a statement of accounts.

(2) Each statement of accounts must comply with any directions given by the

Treasury as to—

(a) 15the information to be contained in it and the manner in which it is to

be presented,

(b) the methods and principles according to which the statement is to be

prepared, and

(c) the additional information (if any) which is to be provided for the

20information of Parliament.

(3) The Office must send a copy of each statement of accounts to—

(a) the Treasury, and

(b) the Comptroller and Auditor General,

before the end of the month of June next following the financial year to

25which the statement relates.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on each statement of accounts, and

(b) send a copy of each report and certified statement to the Treasury.

(5) The Treasury must lay before Parliament a copy of each such report and

30certified statement.

(6) “Financial year” has the same meaning as in paragraph 15.

19 The Office must keep under review whether its internal financial controls

secure the proper conduct of its financial affairs.

Powers

20 35The Office may do anything calculated to facilitate, or conducive or

incidental to, the carrying out of any of its functions.

Validity

21 The validity of anything done by the Office (or a committee or sub-

committee of the Office) is not affected by—

(a) 40a vacancy, or

(b) a defective appointment.

Public records

22 In Schedule 1 to the Public Records Act 1958 (definition of public records),

in Part 2 of the Table at the end of paragraph 3, insert at the appropriate

5place—

• “Office for Budget Responsibility.”

Parliamentary Commissioner

23 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments

and authorities subject to investigation), insert at the appropriate place—

• 10“Office for Budget Responsibility.”

Disqualification

24 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975

(bodies of which all members are disqualified), insert at the appropriate

place—

• 15“The Office for Budget Responsibility.”

25 In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification

Act 1975 (bodies of which all members are disqualified), insert at the

appropriate place—

• “The Office for Budget Responsibility.”

20Race relations

26 (1) In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons

subject to general statutory duty), under the heading “Regulatory, audit and

inspection” insert at the appropriate place—

• “The Office for Budget Responsibility.”

(2) 25The amendment made by sub-paragraph (1) ceases to have effect when the

repeal of that Act by Schedule 27 to the Equality Act 2010 has effect for all

purposes.

Freedom of information

27 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public

30authorities to which Act applies), insert at the appropriate place—

• “The Office for Budget Responsibility.”

Equality

28 In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general),

insert at the end—

35“Other bodies and offices

• The Office for Budget Responsibility.”

References to Treasury Committee

29 (1) Any reference in this Schedule to the Treasury Committee of the House of

Commons—

(a) if the name of that Committee is changed, is to be treated as a

5reference to that Committee by its new name, and

(b) if the functions of that Committee (or substantially corresponding

functions) become functions of a different Committee of the House

of Commons, is to be treated as a reference to the Committee by

which those functions are exercisable.

(2) 10Any question arising under sub-paragraph (1) is to be determined by the

Speaker of the House of Commons.

Section 20

SCHEDULE 2 National Audit Office

Part 1 15Membership and status

Membership

1 (1) NAO is to have 9 members.

(2) They are to be—

(a) 5 persons who are not employees of NAO (“non-executive

20members”) (see Part 2),

(b) the Comptroller and Auditor General (see Part 3), and

(c) 3 employees of NAO (“employee members”) (see Parts 4 and 5).

Status

2 (1) Neither NAO nor any of its members or employees is to be regarded—

(a) 25as the servant or agent of the Crown, or

(b) as enjoying any status, immunity or privilege of the Crown.

(2) NAO’s property is not to be regarded as property of, or held on behalf of,

the Crown.

Part 2 30Non-executive members

Member to chair NAO

3 (1) One of the persons who is a non-executive member of NAO is to chair it.

(2) It is for Her Majesty by Letters Patent to appoint that person.

(3) Her Majesty’s power is exercisable on an address of the House of Commons.

(4) It is for the Prime Minister to move the motion for the address.

(5) To do so the Prime Minister must have the agreement of the person who

chairs the Committee of Public Accounts.

(6) Her Majesty may by Letters Patent extend an appointment under this

5paragraph on the recommendation of the Prime Minister.

(7) To make a recommendation the Prime Minister must have the agreement of

the person who chairs the Committee of Public Accounts.

(8) An extension of an appointment counts as a separate appointment for the

purposes of paragraphs 5 to 7.

10Appointment of other non-executive members

4 (1) The other non-executive members are to be appointed by the Public

Accounts Commission as follows.

(2) If there is a vacancy, the person who chairs NAO must recommend a person

to the Commission for appointment.

(3) 15The Commission may—

(a) appoint the person who has been so recommended, or

(b) require the person who chairs NAO to recommend another person

(in which event this sub-paragraph applies again and so on until

someone is appointed).

20Period of appointment and re-appointment

5 (1) An appointment under this Part of this Schedule is to be for a period of no

more than 3 years.

(2) A person may not be appointed under this Part of this Schedule more than

twice.

25Remuneration arrangements

6 (1) The Prime Minister and the person who chairs the Committee of Public

Accounts may jointly make remuneration arrangements in relation to the

person who chairs NAO.

(2) Amounts payable by virtue of sub-paragraph (1) are to be charged on, and

30paid out of, the Consolidated Fund.

(3) The Public Accounts Commission may make remuneration arrangements in

relation to any other non-executive member.

(4) Amounts payable by virtue of sub-paragraph (3) are to be paid by NAO.

(5) Remuneration arrangements under this paragraph—

(a) 35may make provision for a salary, allowances and other benefits but

not for a pension, and

(b) may include a formula or other mechanism for adjusting one or more

of those elements from time to time.