Corporate report

Gifts and Hospitality Policy

Published 15 July 2022

Introduction

1 . The aim of the Gifts and Hospitality policy (‘the Policy’) is to guard against the risk of allegations of impropriety by individuals, however contracted to work for the CMA, by providing advice on key issues relating to the rules of regularity and propriety. These rules are based on the fundamental requirements of Parliament, HM Treasury and the National Audit Office.

2 . The Civil Service Management Code requires civil servants to conduct themselves with honesty and impartiality in the exercise of their duties.

3 . They should never provide benefits of any kind which might reasonably be thought to compromise either their own personal judgement and integrity or that of others. In this respect, perception is as important as reality. The CMA has a responsibility to ensure the regularity and propriety of the public finances for which it is accountable.

4 . To maintain the CMA’s integrity and reputation, there is a need for transparent practices which withstand public scrutiny and meet expectations in terms of the efficient use of available resources and avoidance of extravagance.

5 . It is important that the Chief Executive Officer (‘CEO’), as Principal Accounting Officer, can defend the CMA against all charges that the level of hospitality offered is excessive. The facility to offer hospitality should always be used sparingly.

6 . For the purposes of this Policy, hospitality and gifts that are clearly offered and accepted in a purely personal capacity are not subject to the requirements set out in this Policy and do not need to be recorded.

Principles

7 . The Civil Service Code states that civil servants must not accept gifts or hospitality or receive other benefits from anyone which might reasonably be seen to compromise their personal judgement or integrity.

8 . Key requirements of the Civil Service Management Code are set out below:

• Paragraph 4.1.3.d - Civil servants must not receive gifts, hospitality or benefits of any kind from a third party which might be seen to compromise their personal judgement or integrity.
• Paragraph 4.3.5 - Departments and agencies must inform staff, taking into account the principle in paragraph 4.1.3.d, of the circumstances in which they need to report offers of gifts, hospitality, awards, decorations and other benefits and of the circumstances in which they need to seek permission before accepting them. In drawing up such rules, departments and agencies must draw the attention of staff to the provisions of the Bribery Act 2010.

9 . The Bribery Act 2010^{[footnote 1]} replaced the Prevention of Corruption Acts 1906 and 1916 and came into effect on 1 July 2011. Under the Bribery Act 2010, it is a criminal offence for employees in an official capacity to accept any gift or consideration as an inducement or reward for: * Doing or not doing anything; or * Showing favour or disfavour to any person

10 . The Bribery Act 2010 does not interfere with or prohibit the ability to offer or accept gifts or hospitality in genuine circumstances. The rules in the Civil Service Code and the Civil Service Management Code in relation to gifts and hospitality still apply and must be followed.

11 . Hospitality is regularly the subject of parliamentary questions, Freedom of Information requests and media interest. This Policy sets out general guidance on the provision and acceptance of gifts and hospitality.

12 . All Board, Panel and staff members acting in a CMA capacity^{[footnote 2]} (‘CMA representatives’) must abide by the provisions of this Policy, whether or not they are civil servants.^{[footnote 3]} Before accepting an offer of hospitality or a gift, staff must notify their staff manager, Board members must notify the CEO and the Compliance Officer, and Panel members must notify the Panel Chair and Compliance Officer, in the first instance.

13 . Any money, gift or consideration received by a civil servant from a person or organisation holding, or seeking, a Government contract (whether directly or indirectly) will be regarded by the courts as having been received corruptly unless proved to the contrary.

Hospitality

Provision of hospitality by the CMA

14 . ‘Hospitality’ includes the provision of food and drink, accommodation and entertainment at business events.

15 . There is great sensitivity around providing hospitality at public expense and accordingly CMA representatives must constantly guard against any appearance of extravagance or ‘perks’. Hospitality should be provided at the CMA’s expense only when there is a clear business need and, as with all expenditure, value for money can be demonstrated.

16 . Under no circumstances should hospitality be provided as a reward or incentive, nor should it be provided as a custom or right. All hospitality provided must be supported by a business case showing evidence of why it is required and the benefit it will bring.

17 . The use of public funds to provide food and refreshment to civil servants or external parties can have the appearance of extravagance, but there are occasions where it may be appropriate.

18 . Hospitality costs are categorised under four headings:

Refreshments for internal meetings – Water may be provided for internal meetings of an hour or more, and coffee / tea / juice where the meeting includes external guests^{[footnote 4]} (for example, as part of Inquiry Hearings, Inquiry Panel Hearings);

Working lunches and refreshments^{[footnote 5]} – Food and refreshments at meetings should be exceptional. Approval by an SCS1 (Director) and the budget holder (if different to the SCS1) is required before food is ordered. Food may be provided only if the meeting lasts for the majority of the day with a need for continuity over a ‘lunch break’. Under no circumstances should meetings start or end with food.

Working lunches may, for example, be provided for Panel Group meetings, members’ seminars and training sessions, or Board meetings, scheduled into lunchtime or all day, or where the CMA needs to consult with counsel in the middle of Court proceedings and it is not viable to break for lunch because of time constraints. Please contact Finance for further guidance on meals for civil servants.

In some circumstances, it is also permissible to provide hospitality in the form of refreshments or working lunches for inter-agency or departmental meetings, or meetings with external guests. Please contact Finance for further guidance on meals with external guests.

It should be noted that alcohol should never be provided as part of a working lunch, whether external or internal.

Management conferences and away-days – These should normally be held in The Cabot. However, there is flexibility in selecting an external venue if there are significant benefits evident in doing so (including the requirement for larger accommodation or the need for colleagues from offices in the devolved nations to hold an event outside of London). Approval from the Chief Operating Officer (‘COO’) or a nominated deputy is required in advance of booking.

If approval is received, venues at other government departments’ premises may be available free of charge and these options should be explored and evidenced. Overnight accommodation costs will not normally be approved and will require approval by the COO (or a nominated deputy). It is imperative that costs are minimised; the purpose defended; and value for money achieved. End of project celebrations should be funded by members of the project team, as the CMA is unable to fund these occasions.

Official entertainment – This refers to events with guests from the private or public sector (normally non-civil service) for the purpose of the CMA’s business. These events may include food and are normally not on CMA premises. Such events tend only to be requested by the Chairman or CEO when entertaining. If, exceptionally, lower grades need to consider official entertainment, prior written approval by SCS2 (Senior Director) is required (unless alcohol is to be provided when the higher authorisation levels apply).

Please note - Purchases of alcohol are strictly controlled. Authority is reserved for the CEO and the COO.

Authorising provision of hospitality by CMA

19 . In summary, the roles and responsibilities within the CMA for authorising the provision of hospitality are as follows:

• Budget Holders – Responsible for ensuring that the correct authorities have been obtained before any hospitality is ordered, as well as ensuring affordability within their budget;
• SCS1 (Director) – Advance approval to provide food at operational-level meetings or conferences held on the CMA estate;
• SCS2 (Senior Director) – Advance approval for official entertainment;
• COO or a nominated deputy – Approval of management conferences and away-days and overnight accommodation;
• CEO / COO – Any exceptional purchase of alcohol.

Receipt of an offer of hospitality

20 . It is important for CMA representatives to cultivate and maintain effective networks in order to support the work of the CMA and to gain a real understanding of the views of stakeholders. However, contact with organisations outside the CMA can give rise to offers of hospitality and, while accepting hospitality in certain circumstances may further the CMA’s interests, this must be balanced with upholding high standards of propriety and guarding against any reasonable suspicion of perceived or actual conflicts of interest or of an undue obligation being created.

21 . When deciding whether to accept an offer of hospitality (which may come from any sector, public or private), CMA representatives should consider the following:

• Purpose: does acceptance further the CMA’s or taxpayers’ interest?

• Proportionality: is acceptance over-frequent or over-generous? Any hospitality accepted should not seem lavish or disproportionate to the nature of the relationship you have with the provider; and

• Avoidance of Conflict of Interest: could acceptance increase the risk of actual or perceived bias arising in the performance of your CMA duties? Relevant considerations might be: what is the provider’s relationship with the CMA? Is the provider bidding for work or being investigated? Is it a taxpayer-funded organisation? By offering hospitality (for example, in the form of a venue), does the provider gain special access to the CMA that it would not otherwise have?

22 . In matters of propriety, high standards are essential. These issues have been addressed in the First Report of the Committee on Standards in Public Life (the Nolan Report)^{[footnote 6]} and more recently in the Government’s response to the Grimstone review into the public appointments process.^{[footnote 7]} As servants of the Crown, we are held to be in a position of trust in relation to the performance of our duties. Therefore, accepting disproportionately lavish, or over-frequent, offers of hospitality could risk a perception of not performing duties in an impartial manner or in good faith.

23 . In most cases, common sense will determine whether an offer of hospitality should be accepted. This Policy extends to events (such as conferences) sponsored by firms with which we deal and must also be read alongside our Conflicts of Interest Policy and any additional guidance on engagements with external stakeholders.

24 . Specifically in relation to conferences and speaking engagements, consider whether attendance, or speaking, at the conference will result in a benefit to the individual (for example in the form of continuing professional education and development) and/or to the CMA.

25 . If it is considered beneficial for the CMA that an individual should speak at an event, then it may be acceptable for a third party to meet some or all of the related travel and/or accommodation costs incurred. However, any hospitality accepted in relation to speaking engagements should be limited to that needed for the individual to fulfil the engagement and CMA representatives should not accept hospitality that might be perceived as a personal reward for speaking at an event or additional to what is required to attend and speak.

26 . Furthermore, decisions about whether to accept hospitality related to speaking engagements are subject to the same general requirements set out at paragraph 21 above. Dinners provided by the event or conference sponsor as part of a speaking engagement are generally acceptable, provided they meet those requirements.

27 . CMA representatives should be encouraged to attend receptions and conferences which offer an opportunity for networking. However, an event at which effective networking can take place with the wider competition community (or equivalent professional community for other staff) is likely to be more acceptable than, for example, a private viewing at a gallery, attending the theatre, or other similar events even though the event may be hosted by, for example, economics consultancies or law firms, and even though the event might take place in prestigious surroundings. Hospitality that benefits the recipient personally^{[footnote 8]} – and cannot be said to develop relationships and outside contacts relevant to CMA’s work – should be politely declined.

28 . If you are invited to a reception as a partner or spouse, then this should still be disclosed in the same way (and, where necessary, discussed with the Compliance Officer), although more leniency may be shown over gaining permission to attend the event.

29 . If CMA staff at SEO level and lower wish to attend a networking event they have been invited to, they should seek approval from a member of senior staff at Grade 7 or higher.

30 . Responsibility for external courses, conferences and seminars comes under the remit of the Academy team. Authorisation must be sought from the Academy team before an external event is booked.

31 . Business contacts may also be personal friends. For the purposes of this Policy, hospitality that is clearly offered and accepted in a personal capacity does not need to be recorded. Relevant factors that may demonstrate that hospitality is being offered in a personal capacity will include whether the hospitality is being paid for by an individual (and not by a business or other organisation’s expense account). However, you should still consider carefully whether hospitality offered, even in a personal capacity, should be accepted in circumstances where there may be an increased risk of actual or perceived bias arising as a result of accepting the hospitality (please see our Conflicts of Interest Policy for more details on conflicts arising from personal relationships).

32 . Any questions concerning the application of this Policy to offers of hospitality should be directed to the Compliance Officer in the first instance.

Gifts

33 . Accepting a gift is normally less likely to make a significant contribution to building and maintaining working relationships than accepting hospitality and can more readily be mistaken as an attempt to exert influence. You should therefore carefully consider whether your acceptance of the gift would compromise, or be seen to compromise, your impartiality and your position of trust in the performance of your duties.

34 . Examples of acceptable and non-acceptable gifts are given in the short Gifts and Hospitality guide.

35 . Gifts should normally be refused or returned where you have direct involvement in decisions affecting the giver, or where they are estimated to be worth more than £25. Where a gift above the £25 threshold cannot be refused or returned without damaging relations, you should inform your staff manager and the Compliance Officer in writing of the circumstances.

36 . Retention of accepted gifts by the recipient is at the discretion of the budget holder, in consultation with the Compliance Officer. In reaching their decision, they must consider whether the gift should be put to another use (i.e. donated to a charity or a library, displayed in public offices etc.) and the risks to the reputation of the CMA associated with the retention of the gift by an individual. In no circumstances may an individual sell an accepted gift for monetary gain.

37 . In addition to considering the general principles set out at paragraph 21 prior to accepting a gift, you should also consider the points below:

• The gift must be given for an appropriate reason.
• The gift must be given at an appropriate time (for example, not in advance of the award of a contract).
• The gift must be of a “one-off” or irregular nature (i.e. that could not be viewed as a regular source of income by the Inland Revenue).
• The details of the gift (whether accepted or not) should be fully recorded in the Gifts and Hospitality Register (the Register) (see paragraph 44 below).

38 . Gifts you keep may incur an income tax liability. Where a gift for you or your family, or series of gifts within one tax year),is worth over £50, or is in recognition of services, it should be declared to HMRC. You should also consult HMRC about customs duty on gifts from abroad. Further information can be found on HMRC’s website (tax on trivial benefits).

Making gifts

39 . It would not normally be appropriate for CMA representatives to give official gifts, but when this arises the following points must be considered:

• Circumstances giving rise to the need for the gift and details of the recipient,
• Justification for the gift in terms of CMA objectives,
• Description of the gift, which should be of an un-contentious nature, and
• Cost of the gift (which should be modest and not exceed the value of the gift received where it is reciprocal).

40 . Authority from the budget holder and the Compliance Officer must be sought prior to making gifts, and any gifts given should also be entered in the Register. These need to be accounted for in accordance with paragraph 43 below.

Reciprocal gifts

41 . Reciprocal gifting is not encouraged. However, there may be circumstances where the failure to give a gift would give offence. An example would be an official visit by foreign officials whose custom would be to give and/or receive a token of friendship or respect. In these circumstances, authority from the budget holder and the Compliance Officer must be sought, and the gift recorded in the Register.

42 . Depending on the circumstances and nature of the gift, HM Treasury approval may be needed. Gifts of an unusual nature, or those valued over £100,000, must be approved by the Treasury in advance, either through the Estimate or in the form of a departmental minute. You should contact Finance in the first instance.

43 . When accounting for any expenditure on gifts, it is important that it is recorded against the specific account code for entertainment. This is to ensure that information on entertainment is recorded correctly and the true position can be stated in response to any questions. Please contact Finance for further information on account codes.

Recording offers of hospitality or gifts

44 . Subject to paragraphs 45 and 47 below, all offers of hospitality or gifts, whether accepted or not, must be recorded on the Register. This includes any instance involving a personal friend where the purpose of the hospitality was to cover business and/or was paid for by the individual’s company expense account.

45 . In general, it is not necessary to record:

• Attendance at functions hosted by HM Government or the Devolved Administrations, the Palace or NDPBs.

• Hospitality provided by overseas governments.

• Hospitality comprising minor refreshments (such as tea or coffee; sandwich lunches).

46 . Hospitality received from universities, local authorities and police forces should be recorded.^{[footnote 9]}

47 . Offers of gifts valued at less than £25 need not be recorded.

48 . The Register should disclose (inter alia): the date; the individual making the dislosure; the organisation / individual making the offer; the nature of the offer; an estimate of value; advice, if any, provided by the Compliance Officer; and whether it was accepted or declined. In cases of doubt, the offer should be recorded.

49 . Budget holders must ensure that staff keep their entries in the Register up-to-date, as it may be subject to internal or external audit. The Board Secretary and the Panel Manager will each assist Board members and Panel members, respectively.

50 . The Compliance Officer will ensure that procedures are in place to review the Register, as appropriate: to assess compliance with this Policy; to monitor whether there is the potential for any risk of a conflict of interest to arise; and to report to the Executive Committee on an annual basis.

Donations

51 . Donations to the CMA or a CMA representative (for example, a fee for a speech or a presentation) should not be accepted. It should be requested they are donated to a charity or other cause instead. It would be a conflict of interest to accept a donation when performing a duty or role on behalf of the CMA. Any queries on donations should be raised with the Compliance Officer.

Publication

52 . In accordance with Cabinet Office guidance on quarterly transparency for Senior Officials, the CMA publishes details of hospitality accepted by senior officials (SCS2 and above).

53 . The Cabinet Office Code of Conduct for Board Members of Public Bodies provides that gifts or hospitality accepted by Board Members should be recorded in a public register.^{[footnote 10]} The register will be published every quarter.

54 . Details of the forms used to publish the information required in paragraphs 52 to 53 above are attached at Annex 1.

ANNEX 1

Transparency data requirements for SCS2 and Board members

CMA SENIOR OFFICIALS’ HOSPITALITY

RES ID	First name	Surname	Date	Person or organisation that offered hospitality	Type of hospitality received	Accompanied by spouse, family member or friend
n/a	n/a	n/a	n/a	n/a	n/a	n/a
n/a	n/a	n/a	n/a	n/a	n/a	n/a

CMA BOARD MEMBERS PUBLIC REGISTER OF GIFTS AND HOSPITALITY RECEIVED

Date	Name of recipient	Hospitality/Gift received	Provider of Gift/Hospitality
n/a	n/a	n/a	n/a
n/a	n/a	n/a	n/a

1. See the Government’s Bribery Act 2010 Guidance document for more information ↩

2. Where a staff, Board or Panel member is offered gifts and/or hospitality related to a role or outside interest that is unrelated to their CMA role, these do not need to be recorded on the Gifts and Hospitality Register (referenced in paragraph 44). However, the CMA’s Conflicts of Interest Policy should still be considered before any such offers of gifts or hospitality are accepted, as acceptance could give rise to a risk of bias or the appearance of bias (see paragraph 21 of the Conflicts of Interest Policy which sets out more details on conflicts arising from personal relationships). ↩

3. See the Code of Conduct for CMA panel members, paragraph 14, paragraph 12; and Cabinet Office Code of Conduct for Board Members of Public Bodies, paragraphs 3.4-3.7 ↩

4. ‘external guests’ in this context does not cover CMA staff from other sites, other civil servants, CMA or OIM Panel members or Non-executive Directors. ↩

5. The CMA differentiates a ‘working meal’ from subsistence provided while working away from your normal office and home. You should contact the Finance team for more information on reclaiming costs (travel, subsistence and other expenses) incurred during the course of delivering departmental business as part of your employment. ↩

6. This report resulted in the creation of the The Seven Principles of Public Life, or “Nolan” principles. ↩

7. Better public appointments: review of the public appointments process ↩

8. For example, tickets to the theatre, or a major sporting event or to a non-work related event where only a small number of people have been invited to attend (for example, a private viewing at a gallery). ↩

9. As set out in the Cabinet Office’s “Guidance on Civil Servants receiving hospitality” 2010 (PDF, 69KB) ↩

10. Paragraph 3.6 of the Code of Conduct for Board Members of Public Bodies ↩