1 Introduction
1. An arm's-length body is an organisation that delivers
a public service, is not a ministerial government department,
and which operates to a greater or lesser extent at a distance
from Ministers. The term can include non-departmental public bodies
(NDPBs), executive agencies, non-ministerial departments, public
corporations, NHS bodies, and inspectorates (see Annex for more
information). We consider these and also public bodies which are
accountable to Parliament. We do not include major government
functions which are contracted out to commercial providers, like
Ministry of Justice contracts with Serco and G4S, which we considered
in our report on procurement and contracting.[1]
The public servants who work for arm's-length bodies perform essential
roles and we took evidence that confirms that most are highly
effective.[2] Nonetheless,
they are often criticised for being unaccountable.[3]
2. This inquiry follows our 2011 Report Smaller
Government: Shrinking the Quango State.[4]
That report found that the 'bonfire of the quangos' was poorly
managed, and we expressed doubt as to whether accountability would
be improved by moving functions in-house.[5]
The prompt for this latest inquiry was criticism of the Environment
Agency in early 2014 as a result of the floods crisis. During
the winter of 2013 to 2014 the UK was severely affected by an
exceptional run of winter storms, culminating in serious coastal
damage, and widespread, persistent flooding. The Agency's management
of this flooding prompted a debate about its role, relationship
to Ministers, and the powers and accountability of public bodies.
The Secretary of State for Communities and Local Government, Eric
Pickles MP, told the House of Commons there were "lessons
to be learned [on] the role of quangos and the need for their
local accountability."[6]
3. In relation to public bodies, being accountable
in practice means taking responsibility for work; examples of
accountability mechanisms include:
· Responding
to Parliamentary questions;
· Giving evidence
before select committees;
· Pre-appointment
and post-appointment hearings by select committees;
· Publishing
or laying before Parliament an annual report and accounts;
· Publishing
a register of members' interests;
· Agreeing strategic
objectives and performance targets and corporate plans with the
sponsor department;
· Holding board
meetings in public and making minutes available;
· Media appearances
and answering journalists' questions; and
· Listening to
the views of the public and stakeholders, and taking these views
into account.
4. Written submissions and transcripts of our four
oral evidence sessions are available on our website at www.parliament.uk/pasc.We
are grateful to all those who gave evidence and to our Specialist
Adviser, Professor Matthew Flinders of the University of Sheffield,
for his help with this inquiry.[7]
5. Tensions can exist between Government and public
bodies (Table 1).
Table 1: Accountability tensions between public
bodies and Government
| Greater focus if a function is performed in a separate body
| | Greater potential for coordinated working if a function is performed in a central government department
|
| Public bodies take responsibility for their own work in the event of failure
| | Greater ministerial control if a function is performed centrally
|
| The desire for simplicity and greater public understanding
| | Adapting to the particular circumstances and complexities of a sector
|
| Strong and close relationships between central government departments and public bodies
| | Seeking challenge and scrutiny
|
| Having expertise and specialists in public bodies
| | Retaining expertise in departments, so that Ministers are well informed
|
6. Accountability tensions must not be increased
by transactional and procedural relationships. We are calling
for a more professional and transparent approach to the management
of the state beyond departmental borders. Functions carried out
by the state should be accountable to Ministers and through them
to Parliament. The Government must ensure public bodies make available
clear information to enable democratic scrutiny and to counter
the disillusionment that stems in part from a lack of understanding
of who is accountable. Our recommendations aim to improve transparency
and the public and Parliamentary understanding of arm's-length
bodies. This would make for better scrutiny, stronger accountability,
and assurance that arm's-length bodies are carrying out their
functions as intended, meeting their aims, and achieving value
for money.
1 Public Administration Select Committee, Sixth Report
of Session 2013-14, Government Procurement, HC 123 Back
2
Q27 [Professor Skelcher] Back
3
For example, Q5, Q101 Back
4
Public Administration Select Committee, Fifth Report of Session
2010-11, Smaller Government: Shrinking the Quango State, HC 537 Back
5
As above Back
6
HC Deb, 6 February 2014, col 445 [Commons Chamber] Back
7
Professor Flinders was appointed as a Specialist Adviser for this
inquiry on 24 June 2014. He declared the following interests:
Trustee and Chair, Political Studies Association, and Director,
Understanding Politics Ltd. Back
| 
