Asked by: Navendu Mishra (Labour - Stockport)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if she will make an assessment of the adequacy of the transparency of the (a) finances and (b) corporate structures at United Utilities Group.
Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
All water companies publish their annual reports on their websites. The publicly available reports include financial and governance information. United Utilities’ most recent annual report can be found here - United Utilities Group PLC - Year in Review 2022 (annualreport2022.com).
In addition to annual reports, all water companies publish an annual performance report (APR). The APRs are accessible to all stakeholders and set out how companies are delivering for their customers, environment and wider society.
Ofwat, the economic regulator, also assesses the financial resilience of water companies and publishes an annual Monitoring Financial Resilience Report, which sets out observations and actions to further improve the financial resilience of the sector. Ofwat’s report can be found here - MFR_2021-22.pdf (ofwat.gov.uk).
The water companies provide an essential public service to their communities, and so our Strategic Policy Statement sets out that we expect Ofwat to encourage and incentivise water companies to foster better corporate responsibility.
Building on their existing principles for board leadership, transparency and governance, Ofwat announced on 20 March 2023 new changes to company licences that will improve the performance and financial health of water companies and provide greater transparency with customers and stakeholders.
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, when his Department's Board met in the 2021-22 financial year.
Answered by Mike Freer - Parliamentary Under-Secretary (Ministry of Justice)
The Departmental Board met on 10 June 2021 and 22 November 2021 during the 2021-2022 financial year, ended 31 March 2022.
Asked by: Emily Thornberry (Labour - Islington South and Finsbury)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, when his Department's Board met in the 2021-22 financial year.
Answered by Leo Docherty - Minister of State (Ministry of Defence) (Minister for the Armed Forces)
Information on the FCDO's top-level governance structures in the 2021-22 financial year, including membership, regularity of meetings and issues covered, can be found in the 2021-22 Annual Report and Accounts: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1095304/FCDO_Annual_Report_2021_2022_Accessible_290722.pdf
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if she will make an assessment of the adequacy of the transparency of the (a) finances and (b) corporate structures of water companies.
Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
There is a high level of transparency in both areas. All water companies publish their annual reports on their websites. The publicly available reports include financial and governance information.
In addition to annual reports, all water companies publish an annual performance report (APR). The APRs are accessible to all stakeholders and set out how companies are delivering for their customers, environment and wider society.
Ofwat, the economic regulator, also assesses the financial resilience of water companies and publishes an annual Monitoring Financial Resilience Report, which sets out observations and actions to further improve the financial resilience of the sector. Ofwat’s report can be found here - MFR_2021-22.pdf (ofwat.gov.uk)
The water companies provide an essential public service to their communities, and so our Strategic Policy Statement sets out that we expect Ofwat to encourage and incentivise water companies to foster better corporate responsibility.
Building on Ofwat’s existing principles for board leadership, transparency and governance, it announced on 20 March 2023 new changes to company licences that will improve the performance and financial health of water companies and provide greater transparency with customers and stakeholders.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, in the context of the proposed Audit, Reporting and Governance Authority, what assessment her Department has made of the potential implications for her polices of the Financial Reporting Council’s decision to increase its funding, staff and remit prior to the draft Audit Reform Bill being published.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Department supports the FRC’s decision to set a budget for 2023/24 that will enable it to deliver its regulatory functions and strengthen its capability, based on its current powers and responsibilities, and in preparation for the Government’s planned reforms to audit and corporate governance
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she is taking steps to encourage businesses to update their Corporate Social Responsibility polices.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
British business has an outstanding reputation for corporate responsibility, with 10 of the world’s top 100 companies ranked by social responsibility based in the UK. These companies thrive within the UK’s world leading corporate reporting and governance frameworks. For example, the Companies Act 2006 requires directors to have regard to the environment, employees, customers, and suppliers, among other matters. Larger companies are required to report how directors have had regard to these matters when taking decisions to promote companies’ success. This is in addition to requirements to disclose information relating to social matters, human rights and corruption within annual reports.
Asked by: Jonathan Reynolds (Labour (Co-op) - Stalybridge and Hyde)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how many officials in her Department are working on legislative proposals on audit reform.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
There are fifteen officials in the Department for Business and Trade working on legislative proposals on reform of audit and corporate governance.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what role the Chair of NHS England has played in risk assessment for the NHS since his appointment.
Answered by Will Quince
The Chair of NHS England oversees the Board as the senior decision-making structure for NHS England. The Board sets the strategy and overall direction of NHS England, within the context of the National Health Service mandate from Government, overseeing delivery of the agreed strategy, the approach to risk, and establishing the culture and values of the organisation.
The Board has delegated some of its duties and responsibilities to Board Committees, which provide regular assurance to the Board on specific areas delegated to them and, by exception, escalate issues that merit full Board discussion and decision. They are led by non-executive directors and include the Audit and Risk Assurance Committee, which meets five times per year and reviews and monitors the integrity of the financial statements, financial and regulatory compliance, the systems of internal and control and the external and internal audit process. In accordance with good corporate governance, the Chair of NHS England is not a Member of the Audit and Risk Assurance Committee.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she has had recent discussions with the Leader of the House on the indicative timescale for the introduction of the proposed Audit Reform Bill.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government is committed to legislating to reform audit and corporate governance when Parliamentary time allows. The Secretary of State has frequent discussions with Cabinet colleagues; the Government’s legislative programme will be announced in due course.
Asked by: Stephen Timms (Labour - East Ham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason he proposes that the new Audit Regulation and Governance Authority will regulate non-public interest actuarial work.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As set out in the Government’s May 2022 response to its White Paper consultation, Restoring trust in audit and corporate governance, the Government intends that the Audit, Reporting and Governance Authority (ARGA) will regulate public interest actuarial work. These activities have the most significant adverse consequences if not carried out and completed to an appropriate standard.
For non-public interest actuarial work, ARGA will have powers to set technical standards, but will not have monitoring or enforcement powers.
This approach maintains the status quo in respect of non-public interest actuarial work, as the Financial Reporting Council currently sets technical actuarial standards. It will also deliver a broader strengthening of the actuarial regime, as recommended in Sir John Kingman’s independent review.