Question to the HM Treasury:

To ask Her Majesty's Government, further to the reply by Lord Newby on 17 June (HL Deb, col 788), by what authority HM Treasury imposes fines on other departments; for what reasons such fines may be imposed; what the effect of such fines are on the Government's overall resources; and whether any disciplinary action is taken against officials found to be responsible for incurring such fines.

The Treasury is responsible for ensuring there is proper accountability to Parliament for the use of public money. It is responsible for setting the ground rules for the administration of public money and is accountable to Parliament for doing so.

The guidelines for managing public expenditure have been set out in a number of documents published by the Treasury, including Managing Public Money[1], the Consolidated Budgeting Guidance[2] and Improving Spending Control[3]. They set out the circumstances where the Treasury may impose fines or penalties on departments. In all cases, the Treasury retains the right to apply whatever penalties are appropriate to incentivise good financial management and value for money.

Fines imposed on departments have had a minimal impact on the Government's overall resources.

Accounting Officers are responsible for ensuring that their departments meet specific standards, as set out in Managing Public Money. The Chief Secretary will write to the Secretaries of State and the Head of the Civil Service where he is concerned that Accounting Officers may fall short in fulfilling their responsibilities for managing public money. Should an Accounting Officer fall short of the standards required he or she may have their designation as Accounting Officer withdrawn, which may lead to termination of employment.

[1] https://www.gov.uk/government/publications/managing-public-money

[2] https://www.gov.uk/government/publications/consolidated-budgeting-guidance

[3] https://www.gov.uk/government/publications/improving-spending-control