Public Sector Exit Payments (Limitation) Bill

Anthony Browne Excerpts

2nd reading
Friday 3rd March 2023 Commons Chamber

[Anthony Browne (South Cambridgeshire) (Con)]

I commend my hon. Friend the Member for Christchurch (Sir Christopher Chope) for bringing this Bill forward. It is on an incredibly important issue that has been the subject of massive public concern, as my hon. Friend the Member for North West Norfolk (James Wild) pointed out, in relation to the BBC and in national Government. It is also of concern in local government. In my area, the Cambridgeshire and Peterborough Combined Authority hired a chief executive officer who left after eight months and was given a £169,000 payment package last year. Such sums of money are completely incomprehensible to members of the public who pay the taxes that go to such payments. That one was at an incredibly high level that breaches even the BBC guidelines.

There is a fundamental problem. I have been chief executive of two organisations, and one of the horrible things about running an organisation is that occasionally one needs to get rid of people and make payments to them. The statutory payments are incredibly low, so we tend to give payments above that. If someone is working for a private sector organisation, they have a strong incentive to try not to give out too much money. I always capped my payments at one year’s salary. I resisted ever paying out more than that.

In the public sector, it is not your money; you are giving taxpayers’ money away, and often senior managers may well have a conflict of interest. My hon. Friend the Member for Christchurch did not quite refer to it as that, but a lot of senior civil servants will be conscious that they may one day themselves be in a position where they will get a payout, so there is perhaps a personal incentive to make sure that the regime is not capped in any particular way and remains generous.

This is a legitimate issue and an issue of public concern. I had not realised that the payments were so much—they are in the region of £1 billion a year now, and that is fiscally significant. These are not tiny sums of money by national standards. It is frustrating that action has not been taken, when it was in the manifesto eight years ago in 2015. The Government have been repeatedly pushing at it. The consultation that closed last year repeated the point about the £95,000 cap. I should say that with inflation at 10%, that £95,000 is becoming worth less and less, and the cap will bite in at a lower level and more and more people will be affected by it. I would certainly be keen to hear from the Government what they intend to do to finally bring this measure in and implement it. In their consultation, they suggest two different mechanisms for control processes. I would also be keen to hear whether this is just for national Government. It should apply across other parts of the public sector and local government, too. I support the intent of the Bill, and I am keen to hear what the Government have to say.