1.The Committee, by letter (sent by email) dated 17th November 2017 asked the Department to submit a memorandum to explain the following point:
Explain the inconsistency between the preamble which recites that consent of the Treasury is required and the signature which does not indicate that the Treasury has consented.
2.The preamble to SI 2017/582 (“the Regulations”) refers to consent having been obtained by the Treasury in order to use the powers in section 56 of the Finance Act 1973 to make regulation 19 of the Regulations. Consent was indeed given by the Treasury - please see attached the email chain showing this.
3.It is the Department’s view that there is no absolute requirement that consent must be established by signature and that consent can be demonstrated in other ways. The e-mail correspondence is in the Department’s view sufficient evidence of Treasury consent.
4.That said, we acknowledge that the Committee would have expected the Regulations to contain the signatures of two of the Lords Commissioners of Her Majesty’s Treasury. Our failure to obtain these signatures was an oversight for which we apologise, and we will do our best to obtain the Lords Commissioners’ signatures for future uses of the section 56 power.
Department for Business, Energy and Industrial Strategy
21 November 2017
30 November 2017