Budget Responsibility and National Audit Bill [HL]

House of Commons

Session 2010 - 11
Internet Publications
Other Bills before Parliament

Budget Responsibility and National Audit Bill [HL]

Budget Responsibility and National Audit Bill [HL]
Part 2 — National audit
8

23
NAO’s expenditure
(1)
NAO’s expenditure is to be paid out of money provided by Parliament.

(But see sections 13(5) and 24(1) and paragraph 6(2) of Schedule 2.)
(2)
For each financial year NAO and the Comptroller and Auditor General must
jointly prepare an estimate of NAO’s use of resources.
5
(3)
This must cover (in particular) the resources required for the purposes of
paragraph 2(1) of Schedule 3 (which requires NAO to provide resources for the
Comptroller and Auditor General’s functions).
(4)
The person who chairs NAO and the Comptroller and Auditor General must
jointly submit the estimate to the Public Accounts Commission.
10
(5)
The Commission must—
(a)
review the estimate, and
(b)
lay it before the House of Commons with such modifications (if any) as
the Commission considers appropriate.
(6)
In doing this the Commission must have regard to any advice given by the
15
Committee of Public Accounts or the Treasury.
Miscellaneous and supplementary
24
Indemnification
(1)
There is to be charged on and paid out of the Consolidated Fund any amount
payable by an indemnified person in consequence of any liability for breach of
20
duty (whether under a contract or otherwise) incurred by an indemnified
person in relation to any audit, examination or inspection carried out as part of
the Comptroller and Auditor General’s functions.
(2)
The liability must not be to another indemnified person.
(3)
The following are indemnified persons—
25
(a)
the Comptroller and Auditor General;
(b)
NAO;
(c)
a past or present member of NAO;
(d)
a past or present employee of NAO.
25
Interpretation
30
(1)
In this Part—
“NAO” has the meaning given by section 20(2);
“Public Accounts Commission” means the body established by section 2
of the National Audit Act 1983;
“statutory provision” means a provision of an Act or subordinate
35
legislation (within the meaning of section 21(1) of the Interpretation Act
1978), whenever passed or made;
“use of resources” is to be read in accordance with section 27 of the
Government Resources and Accounts Act 2000.
(2)
For the purposes of this Part each of the following is a financial year—
40

Budget Responsibility and National Audit Bill [HL]
Part 3 — Final provisions
9

(a)
the period which begins with the appointed day and ends with the
following 31 March;
(b)
each successive period of 12 months.
(3)
In paragraph (a) of subsection (2) “the appointed day” means the day
appointed for the purposes of that paragraph by an order made by the
5
Treasury by statutory instrument.
(4)
Section 13 of the National Audit Act 1983 (interpretation of references to
Committee of Public Accounts) applies for the purposes of this Part as it
applies for the purposes of that Act.
26
Transitional provision and consequential amendments
10
(1)
Schedule 4 contains transitional provision.
(2)
Schedule 5 contains consequential amendments.
Auditor General for Wales
27
Powers of National Assembly for Wales
Schedule 6 contains provision amending the Government of Wales Act 2006.
15
Part 3
Final provisions
28
Power to make consequential provision
(1)
The Treasury may by order make such provision as it considers appropriate in
consequence of any provision of this Act.
20
(2)
An order under this section may—
(a)
amend or revoke any provision of subordinate legislation made on or
before the last day of the Session in which this Act is passed;
(b)
include supplementary, incidental, transitional, transitory or saving
provision.
25
(3)
An order under this section is to be made by statutory instrument.
(4)
A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.
(5)
In this section “subordinate legislation” has the meaning given by section 21(1)
of the Interpretation Act 1978.
30
29
Commencement
(1)
This Part comes into force on the day on which this Act is passed.
(2)
Section 27 and Schedule 6 come into force at the end of the period of 2 months
beginning with the day on which this Act is passed.
(3)
The other provisions of this Act come into force in accordance with provision
35
made by order made by statutory instrument by the Treasury.

Budget Responsibility and National Audit Bill [HL]
Part 3 — Final provisions
10

(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
Extent
5
(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
Short title
10
(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
in any manner, or affect the assessment, levying, administration or
15
application of any money raised by any such charge.

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
11

Schedules
Schedule 1
Section 3

Office for Budget Responsibility
Membership
1     (1)
The Office is to consist of—
5
(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
consultation with the member appointed under paragraph (a) and
10
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
of the initial members of the Office.)
15
      (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)
An appointment under paragraph 1(1)(a) or (b) is to be for a period of 5 years
20
(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.
Appointment of initial members
25
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)
was appointed to do so by the Chancellor of the Exchequer with the
30
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.

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
12

      (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,
and
5
(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
of the non-statutory Office for Budget Responsibility.
10
      (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
Chancellor of the Exchequer after consultation with the member appointed
15
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
remuneration as the Treasury may determine, and
20
(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)
a person ceases to be a member of the Office otherwise than at the
25
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
Treasury may determine.
30
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)
A member of the Office may resign by giving written notice to the
35
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
Office’s permission for a period of more than 3 months,
40
(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

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
13

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)
the member is unfit to continue the appointment because of
5
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
member’s functions.
10
      (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)
The functions of the Office are to be exercised on behalf of the Crown.
15
      (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
department.
20
      (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
as the Office may, with the approval of the Minister for the Civil Service,
25
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
Minister may direct, such sums as the Minister may determine in respect of
30
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.
Committees
35
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
the Office to be known as the Non-executive Committee.
40
10    (1)
The Office may establish other committees.
      (2)
A committee established by the Office may establish sub-committees.

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
14

      (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
person who is neither a member of the Office nor a member of its staff is to
5
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)
its own procedure, and
10
(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)
The Office may delegate functions to—
15
(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
(including functions delegated to it) to a sub-committee.
20
      (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
the Office or the committee (as the case may be) from carrying out the
25
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.
Instruments
30
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
purpose by a member of the Office.
35
      (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
contrary is proved.
40