Wellbeing of Future Generations Bill [HL] (HL Bill 8)

Wellbeing of Future Generations Bill [HL]Page 20

(b) propose amendments to improve the compatibility of bills with the
future generations principle and the relevant department’s wellbeing
objectives,

(c) undertake inquiries to explore specific issues that the Committee
5decides are of relevance to long-term policy-making and the interests of
future generations, and

(d) participate in the appointment process of the Future Generations
Commissioner, as set out in section 19(3)(b).

37 Reports of the Joint Committee on Future Generations

(1) 10The Committee must publish—

(a) an annual report on long-term economic, social, environmental and
cultural trends, which may include recommendations to Her Majesty’s
Government, and

(b) an annual report to Parliament on the discharge of its functions.

(2) 15The Committee may make such other reports as it considers appropriate
concerning any aspect of its functions.

Part 5 Wellbeing and companies

38 Wellbeing duty on companies

(1) 20The Secretary of State must provide by regulations under section 416(4)
(contents of directors’ report: general) of the Companies Act 2006 for a
specified company’s directors to include in the directors’ report an explanation
as to whether, and how, each of the strategically significant activities of the
company advances, detracts from, or is neutral with respect to the wellbeing
25goals under section 6 of this Act.

(2) Subject to subsection (3), a “specified company” means—

(a) a quoted company; or

(b) an unquoted company that does not meet either of the exemptions in
subsections (4) and (7) .

(3) 30 This section does not apply to a company if—

(a) the company is a subsidiary undertaking at the end of the financial
year;

(b) the company’s activities are included in the group report of a parent
undertaking; and

(c) 35 the group report is prepared for a financial year of the parent
undertaking that ends at the same time as, or before the end of, the
company‘s financial year and the group report complies with this
section.

(4) Unless the company is a parent company, the company is exempted under this
40section if—

(a) in relation to its first financial year the qualifying conditions in
subsection (5) are met in that year;

(b) in relation to a subsequent financial year—

Wellbeing of Future Generations Bill [HL]Page 21

(i) the qualifying conditions are met in that year and were also met
in relation to the preceding financial year; or

(ii) the qualifying conditions are met in that year and the company
was otherwise exempted under subsection (3) in relation to the
5preceding financial year; or

(iii) the qualifying conditions were met in the preceding financial
year and the company was otherwise exempted under
subsection (3) in relation to the preceding financial year.

(5) The qualifying conditions referred to in subsection (4) are met by a company in
10a year in which it satisfies two or more of the following requirements—

1 Turnover not more than
£36 million
2 Balance sheet
total
not more than
£18 million
3 Number of
employees
15not more than
250

(6) For the purposes of subsection (5)

(a) for a period that is a company‘s financial year but is not a twelve month
period the figure for turnover must be proportionately adjusted;

(b) 20“turnover” means the amounts derived from the provision of goods
and services after deduction of—

(i) trade discounts,

(ii) value added tax, and

(iii) any other taxes based on the amounts so derived;

(c) 25“balance sheet total” means the aggregate of the amounts shown as
assets in the company’s balance sheet;

(d) “number of employees” means the average number of persons
employed by the company in the year, determined as follows—

(i) finding for each month in the financial year the number of
30persons employed under contracts of service by the company in
that month (whether throughout the month or not),

(ii) adding together the monthly totals, and

(iii) dividing by the number of months in the financial year.

(7) A parent company is exempted under this section if—

(a) 35in relation to the parent company’s first financial year the qualifying
conditions in subsection (8) are met in that year by the group headed by
it;

(b) in relation to a subsequent financial year of the parent company—

(i) the qualifying conditions are met in that year and the preceding
40financial year by the group headed by the parent company;

(ii) the qualifying conditions are met in that year by the group
headed by the parent company, and the parent company was
exempted in relation to the preceding financial year; or

(iii) the qualifying conditions were met in the preceding financial
45year by the group headed by the parent company, and the

Wellbeing of Future Generations Bill [HL]Page 22

parent company was exempted in relation to the preceding
financial year.

(8) The qualifying conditions referred to in subsection (7) are met by a group in a
year in which it satisfies two or more of the following requirements—

51 Aggregate
turnover
not more than
£36 million
net (or £43.2
million gross)
2 Aggregate
10balance sheet
total
not more than
£18 million
net (or £21.6
million gross)
3 Aggregate
number of
15employees
not more than
250

(9) For the purposes of subsection (8), the aggregate figures are to be ascertained
by aggregating the relevant figures determined in accordance with subsection
(5) for each member of the group.

(10) In relation to the aggregate figures for turnover and balance sheet total—

(a) 20“net” means after any set-offs and other adjustments made to eliminate
group transactions—

(i) in the case of Companies Act 2006 accounts, in accordance with
regulations under section 404 of the Companies Act 2006,

(ii) in the case of IAS accounts, in accordance with international
25accounting standards;

(b) “gross” means without those set-offs and other adjustments; and

(c) a company may satisfy any requirements in subsection (8) on the basis
of either the net or the gross figure.

(11) For the purposes of subsection (8)

(a) 30the figures for each subsidiary undertaking must be those included in
its individual accounts for the relevant financial year, that is—

(i) if its financial year ends with that of the parent company, that
financial year, and

(ii) if not, its financial year ending last before the end of the
35financial year of the parent company; or

(b) if those figures cannot be obtained without disproportionate expense or
undue delay, the latest available figures may be taken.

(12) The Secretary of State may by regulations amend the exemptions in
subsections (4) and (7) if it appears necessary to them having regard to the
40wellbeing goals.

(13) For the purposes of this section, the terms “quoted company” and “unquoted
company” have the meanings ascribed to them in section 385 of the Companies
Act 2006.

Wellbeing of Future Generations Bill [HL]Page 23

Part 6 Wellbeing and procurement

39 Social value and procurement

In section 1 (contracts of relevant authorities) of the Public Services (Social
5Value Act) 2012 for subsection (1) substitute—

(1) If a relevant authority proposes to procure or make arrangements for
procuring the provision of services, goods or works by—

(a) entering into a public procurement contract, or

(b) concluding a framework agreement,

10it must comply with the requirements in subsections (3), (6) and (7)
before starting the process of procurement.”

40 Wellbeing duty on authorities

In section 1 (contracts of relevant authorities) of the Public Services (Social
Value) Act 2012, for subsection (3) substitute—

(3) 15The authority must take into account—

(a) how what is proposed to be procured might—

(i) improve the economic, social, environmental and
cultural wellbeing of the relevant area; and

(ii) maximise its contribution to the achievement of the
20wellbeing goals set out in regulations under section 6 of
the Wellbeing of Future Generations Act 2020, and

(b) how, in conducting the process of procurement, it might act
with a view to securing that improvement.”

Part 7 25Final Provisions

41 Power to make consequential etc. provision

(1) The Secretary of State may by regulations make consequential, incidental,
supplemental, transitional or saving provision for the purposes of, or in
connection with, giving full effect to a provision of this Act.

(2) 30The regulations may (among other things) amend, repeal or revoke an
enactment contained in, or in an instrument made under, an Act of Parliament.

(3) The reference in subsection (2) to an enactment includes a reference to an
enactment passed or made after the passing of this Act.

(4) The power conferred by this section is not restricted by any other provision of
35this Act.

(5) A statutory instrument containing regulations made under this section is
subject to annulment in pursuance of a resolution of either House of
Parliament.

Wellbeing of Future Generations Bill [HL]Page 24

42 Regulations

(1) Any power to make regulations under this Act is exercisable by statutory
instrument.

(2) A statutory instrument made under this Act, other than one made under
5section 41, may not be made unless a draft of the instrument has been laid
before and approved by a resolution of both Houses of Parliament.

43 Interpretation

“Financial year” means the period of 12 months ending with 31 March.

44 Extent, commencement and short title

(1) 10 This Act extends to England, Wales, Scotland and Northern Ireland.

(2) This Act comes into force at the end of the period of six months beginning with
the day on which it is passed.

(3) This Act may be cited as the Wellbeing of Future Generations Act 2020.

Wellbeing of Future Generations Bill [HL]Page 25

SCHEDULES

Section 6

SCHEDULE 1 The Citizens' Assembly

1 (1) The Assembly must meet on a minimum of 4 days over the course of a
5month.

(2) The Assembly shall consist of at least 50 and not more than 100 persons.

(3) The minimum age of a member of the Assembly is 16 years old.

(4) The “Citizens’ Assembly coordinating body” under section 6(5) must—

(a) select the members for the Citizens’ Assembly, ensuring that the
10membership of the Assembly reflects the composition of the
population of the United Kingdom as reflected in data obtained by
the Office of National Statistics;

(b) establish an expert advisory board to recommend to the coordinating
body which persons and organisations it deems necessary to advise
15the Assembly.

(5) The Secretary of State must pay remuneration to the Citizens’ Assembly and
the Citizens’ Assembly coordinating body and pay the costs related to the
functioning of the Assembly.

Section 19

SCHEDULE 2 20The Future Generations Commissioner for the United Kingdom

Status

1 (1) The Commissioner is a corporation sole.

(2) The Commissioner is not to be regarded as the servant or agent of the Crown
or as enjoying any status, immunity or privilege of the Crown.

(3) 25 The Commissioner’s property is not to be regarded as property of, or
property held on behalf of, the Crown.

Duration of appointment

2 An individual appointed as Commissioner holds office for a period of 7
years.

Wellbeing of Future Generations Bill [HL]Page 26

Validity of acts

3 (1) The validity of an act of an individual as Commissioner is not affected by a
defect in the appointment of—

(a) that individual;

(b) 5any member of the advisory panel.

(2) The validity of an act of a person exercising functions on behalf of the
Commissioner is not affected by a defect in the appointment of—

(a) that person;

(b) the Commissioner;

(c) 10 any member of the advisory panel.

Terms of appointment

4 The Commissioner holds office subject to—

(a) the provisions of this Schedule, and

(b) such additional terms of appointment as may be specified from time
15to time by the Secretary of State.

Remuneration, allowances and pensions

5 (1) The Secretary of State may pay remuneration to the Commissioner.

(2) The Secretary of State may pay allowances (including travelling and
subsistence allowances) and gratuities to the Commissioner.

(3) 20 The Secretary of State may pay—

(a) pensions to, or in respect of, individuals who have been
Commissioner, and

(b) amounts for or towards provision of pensions to, or in respect of,
individuals who have been Commissioner.

25Disqualification

6 (1) An individual cannot be appointed as Commissioner if the individual is
disqualified on any of the grounds specified in sub-paragraph (3).

(2) An individual ceases to be Commissioner if the individual is disqualified on
any of the grounds specified in sub-paragraph (3).

(3) 30 An individual is disqualified from being Commissioner if the individual is—

(a) a member of the advisory panel;

(b) the holder of any other office or position to which a person may be
appointed, or recommended or nominated for appointment, by or on
behalf of—

(i) 35the Crown,

(ii) either House of Parliament, or

(iii) Her Majesty’s Government;

(c) a Member of the House of Commons or House of Lords;

(d) a Member of the National Assembly for Wales;

(e) 40 a Member of the Scottish Parliament;

(f) a Member of the Northern Ireland Assembly;

(g) a Member of the European Parliament;

Wellbeing of Future Generations Bill [HL]Page 27

(h) a member of a local authority in the United Kingdom;

(i) a member of the Commissioner’s staff.

End of appointment (other than through disqualification)

7 (1) The Commissioner may resign from office by giving the Secretary of State
5not less than three months’ notice in writing of the Commissioner’s
intention to do so.

(2) The Secretary of State may dismiss the Commissioner if satisfied that the
Commissioner—

(a) is unfit to continue as Commissioner, or

(b) 10 is unable or unwilling to exercise the Commissioner’s functions.

Powers

8 (1) The Commissioner may do anything the Commissioner considers
appropriate in connection with the Commissioner’s functions, including—

(a) charging for the provision of advice or other services;

(b) 15paying third parties for the provision of advice or other services;

(c) accepting gifts of money or other property.

(2) The Commissioner must not—

(a) provide financial assistance to any person;

(b) acquire or dispose of any interest in land,

20without the approval of the Secretary of State.

(3) The Commissioner’s power to charge for the provision of advice or another
service is limited to charging such amounts as the Commissioner thinks
appropriate to recover the actual or estimated costs to the Commissioner of
providing that advice or service.

25Staff

9 (1) The Commissioner may appoint such staff as the Commissioner considers
appropriate in connection with the exercise of the Commissioner’s functions
and must appoint a member of staff to be the Deputy Commissioner (see
paragraph 11).

(2) 30The Commissioner may pay remuneration to the members of the
Commissioner’s staff.

(3) The Commissioner may pay allowances (including travelling and
subsistence allowances) and gratuities to the members of the
Commissioner’s staff.

(4) 35 The Commissioner may pay—

(a) pensions to, or in respect of, persons who have been members of the
Commissioner’s staff, and

(b) amounts for or towards provision of pensions to, or in respect of,
persons who have been members of the Commissioner’s staff.

(5) 40The Commissioner must obtain the approval of the Secretary of State for—

(a) the number of staff that may be appointed;

(b) the terms and conditions of service of the staff;

Wellbeing of Future Generations Bill [HL]Page 28

(c) any payments that may be made under sub-paragraphs (2) to (4).

Delegation

10 A function of the Commissioner may be discharged on the Commissioner’s
behalf by any person including any member of the Commissioner’s staff, but
5only to the extent authorised by the Commissioner.

Deputy Commissioner

11 The functions of the Commissioner are exercisable by the Deputy
Commissioner if—

(a) the office of Commissioner is vacant, or

(b) 10 the Secretary of State is satisfied that for any reason the
Commissioner is unable to exercise the functions of Commissioner.

Complaints procedure

12 (1) The Commissioner must establish a procedure for the investigation of
complaints about the exercise of the Commissioner’s functions (“the
15complaints procedure”).

(2) The complaints procedure must include provision about—

(a) how a complaint may be made;

(b) the person to whom a complaint may be made;

(c) the period within which consideration of a complaint must begin
20and be concluded;

(d) the action that the Commissioner must consider taking in response
to a complaint.

(3) The Commissioner may amend the complaints procedure, subject to the
requirement to include provisions in accordance with sub-paragraph (2).

(4) 25The Commissioner must—

(a) make a copy of the complaints procedure available for inspection at
the Commissioner’s office, and

(b) ensure that copies of the complaints procedure are made available at
such other places and by such other means as the Commissioner
30considers appropriate.

(5) The Commissioner must ensure that the arrangements for inspecting and
gaining access to copies of the complaints procedure are published in such a
way as to bring those arrangements to the attention of persons whom the
Commissioner thinks likely to have an interest in the procedure.

35Register of interests

13 (1) The Commissioner must create and maintain a register containing all of the
Commissioner’s and the Deputy Commissioner’s registrable interests.

(2) For the purposes of this paragraph and paragraph 14

(a) “registrable interests” means any interests specified as such by the
40Secretary of State in regulations (and this may include interests of
persons with whom the Commissioner or Deputy Commissioner has
a connection whether familial, financial or of any other kind);

Wellbeing of Future Generations Bill [HL]Page 29

(b) “interest” means an interest of any kind (including gifts, hospitality,
donations received, other financial interests, and all activities and
occupations).

(3) The Commissioner must keep the register of interests up to date.

14 (1) 5The Commissioner must—

(a) make a copy of the register of interests available for inspection at the
Commissioner’s office, and

(b) ensure that copies of the register are made available at such other
places and by such other means as the Commissioner considers
10appropriate.

(2) The Commissioner must ensure that the arrangements for inspecting and
gaining access to copies of the register of interests are published in such a
way as to bring those arrangements to the attention of persons whom the
Commissioner thinks likely to have an interest in the register.

15Conflicts of interest

15 (1) The Commissioner must not exercise a function if the Commissioner has a
registrable interest that relates to the exercise of the function.

(2) If that prevents the Commissioner from exercising a function, the
Commissioner must delegate that function (so far as necessary to enable it to
20be exercised) to a member of the Commissioner’s staff.

(3) This paragraph applies to the Deputy Commissioner exercising a function of
the Commissioner under paragraph 11 as it applies to the Commissioner.

Payments by the Secretary of State

16 The Secretary of State may pay the Commissioner such amounts, at such
25times and on such conditions (if any), as they think appropriate in respect of
expenditure incurred in carrying out the functions of Commissioner.

Annual reports

17 (1) The Commissioner must produce a report in relation to each financial year
(an “annual report”).

(2) 30The Commissioner’s first financial year is the period beginning on the day
the first appointment to the office of Commissioner is made under section 19
and ending on the following 31 March.

(3) An annual report must include—

(a) a summary of the action taken in that financial year in the exercise of
35the Commissioner’s functions;

(b) an analysis of the effectiveness of that action in enabling the general
duty of the Commissioner to be fulfilled (see section 20);

(c) a summary of the Commissioner’s work programme for that
financial year;

(d) 40 the Commissioner’s proposals for a work programme for the
following financial year;

(e) a summary of the complaints made in accordance with the procedure
established under paragraph 12.