GovWire

Guidance: Public bodies

Cabinet Office

September 27
14:15 2022

A public body is a formally established organisation that is, at least in part, publicly funded to deliver a public or government service, though not as a ministerial department. The term refers to a wide range of public sector entities.

Arms length bodies, or ALBs, are a specific category of central government public bodies that are administratively classified by the Cabinet Office. The three types of ALB are: Executive Agencies (EA), Non-Departmental Public Bodies (NDPBs) and Non-Ministerial Departments (NMDs).

Public Bodies Reform Programme 2020 to 2025

The joint HM Treasury and Cabinet Office Public Bodies Reform Programme was established in January 2021. Its mission is for accountable, effective and efficient public bodies that are aligned to its five priority workstreams:

  1. A new strategy for public bodies.
  2. Improved gateways for establishing and reviewing public bodies.
  3. Good governance: enhanced departmental sponsorship and boards of public bodies.
  4. Data: improved data collection and the use of data to change behaviours.
  5. Fiscal levers to align public bodies with government priorities.

These workstreams align with the ambitions and commitments of a modernised Civil Service described by the 2021 Declaration on Government Reform.

What is an arms-length body?

There are 3 types of arms-length body:

  • a non-departmental public body (NDPB) is a body which has a role in the processes of national government, but is not a government department or part of one, and which accordingly operates to a greater or lesser extent at arms length from ministers. NDPBs have different roles, including those that advise ministers and others which carry out executive or regulatory functions, and they work within a strategic framework set by ministers.
  • executive agencies (EA) are clearly designated units of a central government department, administratively distinct, but remaining legally part of it. It has a clear focus on delivering specific outputs within a framework of accountability to ministers.
  • a non-ministerial department is a government department in its own right, but does not have its own minister. However, it is accountable to Parliament through its sponsoring ministers. A non-ministerial department is staffed by civil servants and usually has its own estimate and accounts.

The Public Bodies Handbook: part one provides further information about the classification of public bodies.

The Public Bodies Handbook: part two sets out the ministerial approval process for the establishment of new arms-length bodies.

Executive agencies: a guide for departments describes the characteristics and structures of executive agencies and provides guidance on the processes for their creation, review, merger and abolition.

Public bodies: guide for departments describes the principal characteristics and structures of NDPBs and provides guidance on the processes for their creation, review, merger and abolition.

Reviews

Regular reviews are undertaken to ensure that public bodies remain fit for purpose, and are able to deliver positive outcomes efficiently and effectively. Reviews should also provide assurance that ALBs and sponsor departments are delivering in accordance with any legal and mandatory requirements set by the government.

An existing public body has to meet one of the following three tests in order to remain at arms length from government:

  • it performs a technical function.
  • its activities require political impartiality.
  • it needs to act independently to establish facts.

The new Public Bodies Reviews Project aims to be proportionate and flexible as well as having a broad focus with clear expectations and independent challenge. New reviews project guidance was published in April 2022.

To provide a range of candidates with the expertise needed to lead a review, the Cabinet Office has set up a Lead Reviewer Pool. Departments looking to appoint a Lead Reviewer are welcome to get in touch with the Public Bodies Reform Project Mailbox at any point to request access to the Pool.

Public bodies data

The Public Bodies Directory is a yearly data-gathering exercise providing a single, transparent source of top-level administrative and financial data on the non-departmental public bodies, executive agencies and non-ministerial departments classified as Arms length bodies by the Cabinet Office.

The most recent publication is Public Bodies 2020. Previous editions dating back to 1999 can be found online. Please note, during 2010 and 2011 there was no cross-government collective directory as departments were responsible for publishing their own reports.

Sponsorship good practice

To establish effective working relationships for departments and arms-length bodies, this code of good practice provides a set of principles and standards.

Departments should appoint a dedicated partner (or sponsor) for each of its arms-length bodies. It is their responsibility to manage the relationship between the department and the ALB, in line with the principles set out in the code of good practice.

Code of conduct for board members of public bodies

We expect board members of public bodies to work to the highest personal and professional standards. The Cabinet Offices code of conduct clearly and openly sets out the principles and standards which all non-executive board members of UK public bodies are expected to observe.

Governance

12 Principles of governance for all public body NEDs

NEDs on public bodies should demonstrate the 12 qualities outlined in 12 Principles of Governance for all Public Body NEDs.

ALB boards: guidance on reviews and appraisals

Principles and resources to support regular arms length body board effectiveness reviews and board member appraisals can be accessed on the Arms length body boards: guidance on reviews and appraisals page.

NED induction events

We support new public body NEDs to understand the unique context of public sector governance and the expectations and opportunities of the role. It is intended to complement the departmental and organisation-specific induction that should be offered to all NEDs by sponsor departments and their ALBs.

We currently run quarterly NED induction events which are aimed at new appointments to public service within the first six months of their appointment. These are online events which run over two consecutive afternoons and cover a wide range of topics specific to the roles of non-executive on ALB boards.

Rules on lobbying and PR for public bodies

There is a long-standing principle that public bodies must be politically impartial, and must ensure the proper use of public money at all times. All public bodies must comply with the rules on lobbying, attendance at conference, advertising, marketi

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