Oral Answers to Questions

Edward Leigh Excerpts

Thursday 13th February 2014 Commons Chamber

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

4. What recent discussions the Commission has had on extending the scope of the NAO’s auditing of the Bank of England and any consequent changes to the NAO’s budget.

[Sir Edward Leigh (Gainsborough)]

There have been no recent discussions on extending the scope of the NAO’s role to auditing the Bank of England. As part of its wider discussions of the NAO’s budget in March 2012, the Commission considered the resource implications of the NAO’s new role in implementing the Financial Services Act 2012, in that it appointed the Comptroller and Auditor General to audit the Financial Conduct Authority. The Act did not change the audit arrangements for the Bank itself.

[Geoffrey Clifton-Brown]

The National Audit Office can audit every single Government Department, the BBC and even the Queen. Why does my hon. Friend think that the Bank of England should be an exception?

[Sir Edward Leigh]

I do not think that the Bank of England should be an exception. If the National Audit Office had audited the Financial Services Authority and the Bank of England during the financial crisis of 2007, there may well have been a very different result. When I was Chairman of the Public Accounts Committee, I campaigned long and hard for us—this Parliament—to audit the Bank of England, which we should do.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

The House will be aware that the Governor of the Bank of England recently made some important comments on the currency issue if Scotland were to become independent, and it will be aware that other statements are to be made about that today. Would it not be a good idea for the National Audit Office to commission independent studies on the effects of currency decisions in relation to independence, which would certainly illuminate the debate both in Scotland and the rest of the UK?

[Sir Edward Leigh]

I suspect that the National Audit Office would be very loth to be dragged into the debate on the future of Scotland. Clearly, if Scotland broke away, there would have to be completely different audit arrangements for the Financial Conduct Authority, which the House currently audits. Independence would indeed have implications for the National Audit Office.

[Martin Vickers (Cleethorpes) (Con)]

5. What support the NAO gives to Select Committees and how the effectiveness of such support is monitored.

[Sir Edward Leigh]

In addition to the support it provides to the Public Accounts Committee, the NAO supports Select Committees with informal briefings, advice on selecting and designing inquiries, new research and evidence gathering in support of a Committee’s interest or inquiry, and in providing experts on short-term attachments. On monitoring the effectiveness of that support, the NAO monitors the Government’s responses to PAC reports to ensure that individual Departments have accepted and implemented PAC recommendations.

[Martin Vickers]

The NAO provides valuable help and support for the PAC and Select Committees. Importantly, it is independent of Government. Is my hon. Friend satisfied that it has adequate resources to carry out its work?

[Sir Edward Leigh]

I am satisfied that the NAO has adequate resources, but the Commission has already imposed a 15% cut to its budget in real terms. If further cuts are demanded, the House will have to consider whether the NAO will be able to continue its excellent work to support the Committees of the House, including the Public Accounts Committee.

[Mr Philip Hollobone (Kettering) (Con)]

What proportion of the National Audit Office’s parliamentary work is taken up in servicing the Public Accounts Committee?

[Sir Edward Leigh]

In 2012-13, the NAO’s support to the Public Accounts Committee cost £3 million and its support to other Select Committees cost £2.1 million. My hon. Friend will see that the majority of the funding supports the PAC, but the NAO does valuable work to help all our Select Committees.

The right hon. Member for Banbury, representing the Church Commissioners, was asked—