Policy paper

Government Lead Non-Executive’s annual report 2021 to 2022 (HTML)

Updated 24 May 2023

This was published under the 2022 to 2024 Sunak Conservative government

Introduction

It is with great pleasure that I present my first report as Government Lead Non-Executive following my appointment in March 2022. I would like to thank my predecessor, Lord Nash, for his work in leading the Network.

I am both proud and grateful to coordinate this group of committed, experienced and diverse non-executives. The role of non-executives is to complement ministers and officials on the boards of departments by contributing fearlessly independent experience, challenge and scrutiny. My many conversations across government confirm that this role is being actively carried out and is making a positive difference to the effectiveness and governance of government.

Since my appointment I have met frequently with the departmental lead non-executives, both individually and in group calls and meetings. I have also hosted a conference to which all non-executive directors were invited. NEDs have also gathered across departments to share experience and discuss common issues on topics such as net zero, the union of the UK, and audit and risk. These meetings have also been a forum for us to collectively exchange views with ministers, senior officials and bodies such as the Civil Service Commission, the Committee on Standards in Public Life and the National Audit Office, to whom I am grateful for their participation. The network has been engaged and enthusiastic about exchanging learning and sharing challenges across departments.

I participated in the Public Administration and Constitutional Affairs Committee inquiry into The Role of Non-Executive Directors in Government. I welcomed the scrutiny of the Committee as a way of shedding some light on how non-executives carry out their role in practice and reflecting on how we could be even more effective. I thank the Committee members for their time and look forward to their report.

I would also like to thank all the non-executives for their continued hard work. This was a year of unusually high rotation of ministers, which raised challenges for the work of boards but where the non-executives were able to provide a degree of continuity of knowledge and experience in the departments. I would like to add my particular thanks to those non-executives who retired as their terms of office came to an end, and to welcome all the excellent new non-executives to the network.

Michael Jary, Government Lead Non-Executive

Key Facts

Non-Executive Directors across Central departments and Territorial Offices

• 14 New Appointments
• New Non-Executive Director Appointments:
  • 33% Women
  • 67% Men
• 4 Reappointments
• Gender Breakdown of Lead Non-Executives
  • 39% Women
  • 61% Men
• 94 Non-Executive Directors
  • 37 Women
  • 57 Men
• 3 Lead Network Meetings
• 5 Lead NED Teleconferences
• 1 All NED Conferences

Foreword

The past twelve months have seen a gradual return to the pre-pandemic ways of working, whilst departments have continued to embrace technology to ensure greater efficiency, effectiveness and participation at all levels of government.

The departmental non-executives Network has provided challenge and scrutiny in a collaborative and coordinated way, for which I thank them. The expertise and experience of non-executives ensures that their contribution in areas such as delivery and planning and performance management is invaluable in supporting delivery and for holding departments to account.

The non-executives come from a variety of backgrounds, and we welcome Michael Jary’s commitment to building on both the diversity of the network and his plans to build a high quality talent pipeline for the non-executives of the future. This aligns with our ambition for an ever more inclusive Civil Service that mirrors the citizens we serve.

I would like to thank Michael for this report and look forward to working with him and his Network during 2022-23 to tackle the challenges and opportunities ahead.

Alex Chisholm, Chief Operating Officer of the Civil Service and Permanent Secretary Cabinet Office

Chapter 1: Review of the Departmental Board Programme in 2021-22

Who we are

This year marks the eleventh year since the introduction of the departmental board model. The model brings together Non-Executive Board Members (NEBMs), ministers and civil servants at departmental boards, chaired by the Secretary of State. Non-executives also make a significant contribution outside of the boardroom.

Non-executive board members were brought into government to provide scrutiny, support and challenge. They exercise this role through influence and advice, supporting as well as challenging the executive. They advise on performance (including agreeing key performance indicators), operational issues (including the operational / delivery implications of policy proposals), and on the effective management of the department. They also provide support, guidance and challenge on the progress and implementation of Outcome Delivery Plans, and in relation to recruiting, appraising and ensuring appropriate succession planning of senior executives.

Non-executives chair committees responsible for audit and risk assurance, and nominations, as part of departmental governance. Outside the boardroom they are taking on extra roles both within departments and across government. Examples include:

• Supporting the annual appraisal process of Permanent Secretaries;
• Providing informal advice and support to officials and ministers;
• Providing challenge, scrutiny and advice to major projects and programmes;
• Participating in appointment exercises within departments and in their wider departmental family organisations;
• Undertaking independent reviews at the request of the Secretary of State or Permanent Secretary;
• Challenging the departments delivery of the declaration of government reform;
• Providing support, guidance and challenge in relation to talent management, recruiting, appraising and ensuring appropriate succession planning of senior executives;
• Mentoring senior Officials;
• Taking part in capability reviews (e.g. commercial capability);
• Supporting the implementation of the government’s public bodies reform programme;
• Sharing good practice in across government to ensure departments learn from comparable organisations; and
• Supporting the scoping of projects and acting as a trusted sounding-board for early ideas.

The departmental case studies, set out in Annex 1, provide examples of these types of roles in action.

Board Meetings

Frequency

In 2021-22, 84 departmental board meetings were held across 16 central government ministerial departments and 3 Territorial Offices^{[footnote 1]}. This represents an average of 4 meetings per department, which meets the required minimum of 4 meetings per department per year.

Since the last report, the restrictions which were in place in response to Covid-19 have been removed. As a consequence, departments have resumed meetings taking place in person. Some meetings have been hybrid to facilitate attendance of board members.

There has always been a variety in the frequency of board meetings across departments, and, as Figure 1 illustrates, the majority have met at least four times.

Figure 1 : Number of Departmental board meetings held in 2021-22

Department	Meeting Frequency 2021-22
BEIS	4
CO	7
DCMS	3
DfE	7
DEFRA	6
DIT	3
DfT	4
DHSC	4
DWP	4
FCDO	2
HMRC	10
HMT	4
HO	4
DLUHC	2
MOD	6
MOJ	2
OSSS	3
NIO	3
OSSW	6

Expected minimum number of Board meetings, as set out in the Code (4)

Attendance

Overall attendance at board meetings, this year at 89%, remains high but shows a minor reduction of 4% compared to 2020-21. Figure 2 illustrates all of the constituent groups of board membership, and indicates a relatively consistent level of engagement in each category. Officials participation has increased when compared to the previous year, Secretaries of State, junior ministers and non-executives participation has decreased. All levels of attendance compare favourably to the 2014-15 baseline.

Figure 2 : Attendance at Departmental Board meetings

Attendance	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22
Secretaries of state (chairs)	85%	90%	88%	86%	88%	89%	96%	92%
Junior ministers	60%	65%	67%	79%	72%	76%	87%	79%
Officials	89%	93%	87%	90%	87%	91%	90%	95%
Non-executives	85%	87%	82%	92%	90%	91%	97%	92%
Average	80%	84%	81%	87%	84%	87%	93%	89%

Turnover

There has been a higher turnover of both Secretaries of State and Junior Ministers this year when compared to the previous one. Non-executive and Officials turnover during 2021/22 has decreased compared to last year.

Figure 3 : Turnover of Departmental Board Members

Turnover	2014-15	2015-16	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22
Secretaries of State (chairs)	30%	44%	63%	47%	26%	95%	6%	41.18%
Junior ministers	31%	37%	31%	60%	19%	86%	8%	28.70%
Officials	18%	18%	12%	31%	16%	20%	33%	12.47%
Non-Executives	18%	24%	12%	23%	10%	16%	34%	9.89%

Non-executive board members

As at 31 March 2021, there were 94 Non-Executive Board Members across 19 central departments (15 ministerial departments, HMRC and three Territorial Offices). A list of appointees is provided in Annex 2 (up-to-date details are on departmental websites).

Non-executives are appointed on merit by the department’s Secretary of State, with roles advertised on the HM Government Public Appointments website. Non-executives on central government departmental boards are recruited primarily from the commercial sector and generally have experience of managing large and complex organisations.

In the last year three of the non-executives appointed have been appointed directly by the relevant department Secretary of State.

Skills

In the last year, we have welcomed new non-executives to the Network whose experience and professional expertise includes roles at BP, BBC, Siemens, Deliveroo, National Trust and the Financial Times Group. A number of non-executives are leading practitioners in senior corporate roles such as Directors, Chief Executive Officers, Partners and HR Directors.

We remain committed to ensuring that those who are appointed continue to offer the best outcomes for government and members of the public through their directly-relevant skills and experience.

Diversity

Inclusive and diverse public boards are more effective, better able to understand their customers and stakeholders, and benefit from fresh perspectives, new ideas, strong challenge and broad experience.

I support and champion diversity when departments are considering new non-executive appointments. As at 31 March 2022, women made up 40% of Non-Executive Board Members (and made up 33% of all non-executives appointed in the period April 2021-March 2022).

These figures are on a par with similar appointments in FTSE 250 companies where in 2021 female Non-Executive Board Members made up 41.2% of Non-Executive Board Members^{[footnote 2]}.

I am personally committed to this issue and will continue to ensure that Secretaries of States, Ministers, senior officials and lead Non-Executive Board Members work to ensure that recruitment processes encourage candidates from a wide range of backgrounds.

Role of the Government Lead Non-Executive

Since my appointment I have met regularly with Secretaries of State, Permanent Secretaries, non-executives and others. In total, I undertook 213 meetings and numerous informal conversations with ministers and other stakeholders.

The lead non-executives met eight times over the year, the Audit and Risk Chairs met twice and all non-executives were invited to a conference in October 2022. The Network heard from a wide range of notable speakers and considered subjects including pressures and contingencies for the civil service, climate change, governance and accountability, and government reform.

In other activities, many non-executives have supported the work of their departments in addition to their board member role. Further additional work led by non-executives during 2021/22 has included:

• Working with the UK Infrastructure Bank (UKIB) to support it in its establishment as a new ALB;
• Hosting an ARAC Conference for BEIS’ Partner Organisations to strengthen knowledge and learning around risk and assurance;
• Providing direct input and support for the National Tutoring Programme, Further Education programmes (including the uptake of Apprenticeships and T Levels); and
• Leading deep dive reviews into commercial contracts and cross government contract management and joining the newly formed Commercial Strategy Board in the Crown Commercial Service as well as being a longstanding member of the Government Commercial Oversight Committee.

The above provide a few examples of where non-executives are stepping beyond their departmental portfolios and increasing their contribution to the wider landscape of government.

The Government Declaration on Reform included an action to produce a set of recommendations to support non-executives in their role. I led a review of the guidance produced by the Cabinet Office to enhance the contribution of non-executives. This includes a core induction pack for new non-executives, examples of good planning and performance in government and guidance for non-executives when involved in crises and good practice expectations.

I have started work to develop a talent pipeline for high quality non-executive candidates for the future. This will include maintaining the diversity of the Network as well as increasing the quality of candidates to recognise the value of bringing different perspectives, skills and experience to the departmental boards across government.

I would like to thank all the departmental Non-Executive Board Members for their commitment, hard work and delivery of our role. As a Network, we have risen to the challenge and contributed effectively across many different remits in our departments.

Finally, I would also like to acknowledge the contributions of those non-executives who retired as their terms of office came to an end, and to welcome fourteen new non-executives to the Network.

I am proud to lead such a committed Network and look forward to the coming year during which we can continue our support to departments, ministers and officials.

Chapter 2: Priorities for the Non-Executive Board Member network

Introduction

The non-executive Network is genuinely admired and valued within departments and across government as a whole. It is recognised as a group that is highly experienced and is able to give expert advice and challenge. One of my aims is to improve on the value we bring to our departments to enable the talent within the network to have even greater impact.

1) Talent

I believe in the importance of maintaining the talent and prestige of the Network. Over the next year I hope to see improvements in the recruitment process, both in terms of transparency and speed, as well as looking to continual development of the talent pipeline of potential, diverse, high calibre candidates. I anticipate this will be supported by the forthcoming report from the Parliamentary and Constitutional Affairs Committee, together with recommendations from Lord Maude’s Governance and Accountability review.

The Network has continued to support departmental talent management activities in addition to being represented on departmental boards. These activities include participating in recruitment panels, talent assessments for Directors and Directors General and partnering with senior leaders to provide advice and guidance. Lead non-executives continue to play a key role in the appraisal of their Permanent Secretaries by attending departmental stocktakes and preparing feedback reports that inform the overall assessment of their individual performance. The Permanent Secretary’s line manager uses the report to support appraisal discussions with the Permanent Secretary.

Non-Executive Board Members have also brought their expertise to bear in supporting a number of important strategic cross cutting areas such as the Evaluation Task Force; the Functional Effectiveness Board; and the Senior Leadership Committee . Their participation has highlighted the added value which the Network brings to government.

Other areas has included:

• Dame Sarah Storey’s participation on a panel at the first virtual International Transport Forum’s Annual Summit, part of a global body that covers all transport modes;
• Tracy Westall serves as the department’s Diversity Champion and Whistleblowing Champion as well as Chair of the DfT Public Appointment Diversity Engagement Group;
• Ashley Machin is Chair of the Transformation Advisory Committee (TAC) which provides an opportunity for TAC Non Executive Members to take a deep dive into both the digital approach to Data Analysis and Fraud and Error; and
• Gay Huey Evans CBE sat as interim NEBM on the board of UKIB as it was being set up and established as a new ALB.

2) Outcome Delivery Plans (ODPs)

ODPs were introduced for the 2021/22 planning year. They form the basis of the Government’s planning and performance framework and set out a department’s objectives and key enabling activities, how it will use its resources to achieve the desired outcomes, and how its performance can be measured.

During 2021-22 the Lead Non-Executives have supported departments in achieving the priority outcomes of ODPs by:

• encouraging investment in the department’s capabilities and technology to support becoming more efficient and responsive to the needs of the public;
• Providing structured challenge and advice within departmental strategy discussions and delivered targeted advice to ensure that departments are appropriately resourced to deliver on priorities;
• Considered and evaluated the overall performance of departments through the lens of portfolio, finance and risks; and
• Being a sounding board for each department’s strategic planning teams, helping planned improvements across the system as well as reviewing metrics to monitor progress.

Non-Executive Board Members have played a clear role in providing challenge to ministers and senior officials, particularly on the prioritisation of resources and capability. Non-executives have supported the successful implementation of ODPs. This will continue to be a priority area over the coming financial year.

Other areas where non-executives have contributed during 2021-22

Annex 1 details the case studies of the work undertaken by department Non-Executive Board Members during the year.

Chapter 3: 2022-23: The Year Ahead

Over the next year there will undoubtedly be a number of challenges for the non-executive Network, including supporting the Civil Service to achieve workforce efficiencies in the right areas to maintain the delivery of services to the public. We will continue our work within each department to assist with achieving each department’s priorities as set out in the Outcome Delivery Plans.

I will continue the work started by my predecessor to focus on how boards demonstrate their impact and effectiveness, by making significant contributions to government, and also to draw out examples and implement, where necessary, best practice in governance and standards. Effective departmental boards are a crucial factor in supporting departments in their work, by giving oversight and advice and also providing continuity and legacy knowledge during periods of change.

I intend to work with an emphasis on the value that the non-executives are able to bring to their role, with a view to each department providing their boards with improved performance data and a league table of across departments covering various key operational and strategic measures. I will also continue working with the departmental Lead Non-Executives as a Network to improve sharing, promote joint working and improve consistency.

Over the next year the Network will focus on:

• driving increased diversity and inclusiveness of the non-executive network to ensure future candidates are of a high calibre and add value to the work of departments;
• championing reform and driving the agenda in departments to ensure that they are realistic in the context of prioritisation, planning and deliverability; and
• supporting the implementation of Civil Service Reform as part of enabling and empowering a modern Civil Service.

Annex 1: Department Case Studies from Lead Non-Executives

Driving long-term improvement in departmental operating effectiveness

Given the breadth of the Cabinet Office’s activities and its strictly apolitical mandate, the Cabinet Office Board spends little time intervening in day-to-day departmental activities. Instead, the Board uses its external perspective to help drive continuous improvement in the underlying operations of the department. The Board focuses on the long-term drivers of organisational efficiency – factors that will be important regardless of the individual policies the department is undertaking.

The Board has been particularly focussed on four drivers of organisational effectiveness: financial controls; organisational structure; technology; and, people and culture.

There has been a substantial improvement in the quality of the department’s financial controls. The development of a Cabinet Office Approvals Board with participation from ministers, officials and non-executives has led to greater compliance, better business cases, more mature discussions on risk appetite and greater congruency between policy priorities and resource allocation.

Regarding organisational structure, there is now widespread acceptance that two decades of growth in the Cabinet Office’s activities has created an unwieldy department. Work is now underway to simplify reporting lines, increase spans of control and reduce the department’s workload.

Driving investments in the department’s capabilities and technology is a multi-year endeavour that will make the Cabinet Office more efficient and more responsive to the needs of citizens. The Board has been a strong advocate for persisting with these investments. This has been reflected in Spending Review allocations that raised investments in upgraded technology, enhanced cyber security and increased training budgets even as overall spending levels were under downward pressure.

Anand Aithal, Lead Non-Executive, Cabinet Office

Lending strategic support and expertise through a period of external instability and challenge

During 2021-22 there was a high level of engagement from Non-Executives across the Department for Business, Energy, and Industrial Strategy. The Department welcomed Non-Executive Peter Mather to its Departmental Board to bolster the Department’s priority on transitioning to net zero and energy security. The Projects Investment Committee recruited a further Non-Executive Member to provide additional guidance and assurance to BEIS on business cases to ensure it is delivering sound projects at the best value for money.

Non-Executives made valuable contributions at the Departmental Board, which met four times this financial year, the Audit & Risk Assurance Committee, which met six times, and the Nominations Committee, which met twice. In addition, Non-Executives partnered with Directors General to discuss and advise on cross cutting and pertinent issues facing the Department, including: the Post Office Limited Horizon Repayment Scheme; the Outcome Delivery Plan; Spending Review; talent retention; internal compliance; covid loans and annual reporting.

Non-Executives also ensured that they met with their colleagues in other Departments to share best practice. Nigel Boardman hosted an ARAC Conference for BEIS’ Partner Organisations to strengthen knowledge and learning around risk and assurance. Peter Mather launched a Climate NEBM conference, with membership of NEBMs from all Whitehall Departments, to ensure cross collaboration across Government on its climate agenda.

I am confident that BEIS’ Non-Executives will continue to advise, scrutinise, and challenge BEIS Ministers and Officials as we work through this challenging period. Non-Executives are committed to assisting the Department in securing a resolution on the cost of living and energy crisis ensuring increased energy stability to make certain the UK does not face such a situation again.

Ann Cairns, Lead Non-Executive, Department for Business, Energy and Industrial Strategy

Lending strategic support and expertise through a period of external instability and challenge

One of my key priorities for the last year has been supporting the department in its approach to the Spending Review and subsequent settlement, and then ensuring the department is sustainably resourced to deliver on its priorities over the full Spending Review period. Along with the wider Non-Executive team we have provided structured challenge and advice on departmental strategy discussions and supported and challenged approaches to ensure the department is appropriately resourced to deliver on its priorities, whilst remaining flexible to developing challenges that it has done so well over recent years on.

This approach has seen a closer working relationship with Department’s officials and the set-up of more regular Executive Board/Non-executive meetings to ensure we can challenge and support the department on its delivery priorities. We have also changed the use of the Departmental Board meetings to ensure the Secretary of State and Ministers can utilise the experience and expertise of the Non-Executive team to provide targeted advice on developing priorities. The Executive Board/Non-Executive meetings ensure there is continued regular challenge back to the department and other areas of business are delegated from the Departmental Board to this group.

Claudia Arney, Lead Non-Executive, Department for Digital, Culture, Media and Sport

Driving long-term improvement and changes in departmental operating effectiveness

2021-22 saw some changes among the Department for Education’s Non-Executive Board Members. We bid farewell to two NEBMs and thank them for their contribution to the Department during their tenures.

Throughout the year, NEBMs supported the Department in its work on the education and childcare sectors during the ongoing response to COVID 19. This included direct input and support for the National Tutoring Programme, Further Education programmes (including the uptake of Apprenticeships and T Levels), and Special Educational Needs reform. Furthermore, The Board considered the Department’s response to the tragic murder of Arthur Labinjo-Hughes. A National Child Safeguarding Review Panel and Joint Target Area Inspections were commissioned, and the Board was assured that the findings from these would inform the ongoing independent review of children’s social care, the development of which was scrutinised and supported by NEBMs.

In Board and sub-committee meetings, non-executive Board Members played an active role in scrutinising plans for the departmental restructure (known as Future DfE), and offered advice based on change programmes in which we had been involved with in the private sector. Likewise, we supported departmental leaders and Senior Civil Servants with changes to the Board both at ministerial and executive (and non-executive) level.

The departmental Board, including NEBMs, regularly reviewed departmental performance against the Secretary of State’s (September 2021 – July 2022) priorities of Skills, Schools, and Families and how each of these would contribute to the government’s Levelling Up agenda. In particular, NEBMs provided advice on employers’ engagement with apprentices and others seeking technical qualifications, and how they could contribute to Levelling Up and to learners realising their potential.

Richard Pennycook Lead Non-Executive, Department for Education

Supporting departmental priorities across the board

2021-22 has been another challenging and pivotal year for the Defra group. The department has played a major role in the Government’s recovery from COVID-19 and the UK’s response to the conflict in Ukraine and the impact on our sectors.

Throughout the year Non-Executive Board Members have been increasingly focussed on evaluating progress against the group’s Outcome Delivery Plan and discussed Defra’s performance through the lens of portfolio, finance and risks. I have sat on the department’s new delivery committee that was set up in January to complement this approach.

In addition to their contributions to board and committee meetings, individual NEBMs, through their champion roles have used their relationships within the department to provide insight on and challenge to some of the most critical areas of work. Lizzie Noel as ‘Union’ and ‘Levelling-Up’ champion, has worked closely with relevant policy teams to help drive forward the agenda. Lizzie has also helped improve the department’s commercial capacity and contract management through her ‘commercial’ champion role. Elizabeth Buchanan has been working on the issue of rural affordable housing. Ben Goldsmith continued to engage with officials on the reintroduction of species such as the beaver, and has worked with the Department as we have developed policy in this area. I have continued my role as the ‘Net Zero’ champion and Colin Day continues to add active challenge and scrutiny as Chair of the Audit and Risk Assurance Committee.

Henry Dimbleby, Lead Non-Executive, Department for Environment, Food and Rural Affairs (Defra)

Supporting departmental priorities across the board

This was the first full financial year that the Foreign, Commonwealth and Development Office (FCDO) operated as a single department, bringing together the UK’s diplomatic and development activity to maximise our global impact. It has also been an unprecedented year of challenge on the global stage which has brought new pressures to the FCDO’s delivery.

The FCDO’s Non-Executive Board Members have continued to work with the Executive team on the mechanics of the merger, working hard and bringing external expertise to build a new organisation that can realise the benefits of merger. Nearly 17,000 staff have come together into a single organisation with a new operating model with one mission, purpose and culture.

As a Board, meeting monthly, we have discussed and advised on key issues including:

• Prioritisation and planning for key events including the G7 presidency and COP26;
• Building an agile skilled workforce to be best placed to respond to the changing and challenging external environment;
• The lessons learned review of the FCDO’s response to the Afghanistan crisis (overseeing the delivery of recommendations being a priority for 2022/23);
• Delivery against the department’s priority outcomes through the Outcome Delivery Plan (ODP) process and oversight of ALBs;
• The new risk management framework and mitigation plans including in the areas of cyber security and health and safety; and
• The implementation of a unified technology platform to support standardised ways of working across the FCDO.

John Coffey, as chair of the Audit and Risk Assurance Committee (ARAC), led on supporting the new risk management policy launched in July 2021 to strengthen the department’s management of principal risks. Ann Cormack, in her role as lead NEBM for human resources, provided challenge and guidance to the People Committee and Senior Appointments Board - including supporting several panels to make significant public appointments. In my role as lead non-executive for finance, and as a member of the ARAC, I provided expertise and external challenge to the FCDO’s finance and commercial practices as well as advising on capital investment projects.

Outside of the formal committee structure, John and I were asked to lead an independent review of the management practices around FCDO development programmes. From this review, several recommendations to streamline a variety of processes have been successfully implemented.

Finally, Baroness Helena Morrissey stepped down as FCDO Lead Non-Executive in June 2022. I would like to thank her for her guidance in the initial establishment of the FCDO.

Beverley Tew, Interim Lead Non-Executive, Foreign, Commonwealth and Development Office

Supporting the department through unprecedented challenging times

The NEBMs have participated in the weekly meetings of representatives of the health and social care sector aimed at overseeing and coordinating the response to the Covid 19 pandemic, including the Omicron variant related wave whose impact dominated in the second half of the financial year.

They have attended various meetings and challenge sessions aimed at offering further challenge and advice on the management of specific aspects of the pandemic response including the vaccine programme and the procurement of PPE.

The NEBMs continued to support the department through their involvement in different workstreams, membership of oversight committees and deep dive sessions. Furthermore, either collectively or individually they have attended regular meetings on other issues relating to the management of the department, including Audit and Risk Committee, Remuneration Committee and People Board, as well as the wider management of the health and social care sector or cross government issues, including the Union, the ongoing implementation of Brexit and the reform of the social care system. At the Departmental Board, regular challenges were brought on performance and deliverability, including major projects such as the new hospitals programme.

The NEBMs regularly met with the Permanent Secretary to flag issues from their meetings with officials and any other concerns they had.

At all these meetings the NEBMs have sought assurance on the effectiveness of management arrangements and actions including in the identification and handling of risks. They have brought independent oversight, challenge and advice to the work of the department, its ministers and individual officials.

Kate Lampard, Lead Non-Executive, Department of Health & Social Care

Driving long-term improvement and changes in departmental operating effectiveness

The Board would like to thank the executive for their consistently full, open and transparent approach during the course of 2021-22. This collaboration has enabled us to jointly address a full agenda and make substantial progress following the COVID-19 pandemic.

There have been a number of improvements to the Board’s governance arrangements throughout the year to help non-executives effectively scrutinise HMRC’s performance and provide effective advice. The Board formally established the Performance Committee, chaired by me and attended by the entire Board. It ensures consistent, rigorous monthly scrutiny of organisational performance, including policy implementation and operational and change delivery. Separating operational issues from the main board meeting has been extremely beneficial and allowed non-executives and executives to utilise board time more effectively in addressing strategic issues.

At the beginning of the year customer service standards continued to fall, following the exceptional demand created during the COVID-19 pandemic, which was a major focus for the board. Significant board time and support from the Customer Experience Committee has helped HMRC rebuild these service levels. My colleagues and I have also continued to support the executive in delivering effective compliance activity, whilst operating within budgetary constraints, to manage the Tax Gap.

Non-executive colleagues and I have continued our committed focus on HMRC’s transformation agenda, which is a key opportunity to turn HMRC into a modern, digital, tax authority. Non-executives have positively engaged with HMRC teams to support the transformation portfolio to deliver new ways of supporting taxpayers, administering the tax system and improving operational efficiencies. The scale and complexity, as well as the imperative to deliver, has made transformation the key focus of the Board for the most part of the year.

Fundamental to all of HMRC’s activity, and to maintain the integrity and trust in the tax system, is robust cyber and data security. The board has had regular updates on progress in continuously improving security across the organisation and is pleased to report positive progress to date. These updates will continue as change is delivered.

The HMRC board is busy, engaged and manages a full agenda. All non-executives appreciate the work put in by the executive team and secretariat to achieve their objectives. We look forward to another positive and constructive year ahead.

Jayne-Anne Ghadia, Lead Non-Executive, HM Revenue and Customs

Providing strategic support and expertise through a period of external instability and challenge

Over the past year, the pace and range of challenges facing the Treasury has not slackened. Throughout that period, the job of the Non-Executive Board Members (NEBMs) has been to provide independent, external advice to the Treasury, both formally through governance boards and committees and, more informally through their day to day interactions with senior officials.

The year has also seen changes to the NEBMs team as Richard Meddings CBE and Tim Score both reached the end of their second term. I would like to thank them for their wise counsel and for the significant contribution they both made to the department. Following an open recruitment, we welcomed Zarin Patel as NEBM and Chair of ARC, and Edward Braham as NEBM and ARC member in January 2022. (Jane Hanson CBE joined in September 2022).

The NEBMs have given advice to the department on returning to the office and working in a multi-site working environment (London, Darlington and Norwich). They have also provided challenge on finances, staffing, the COVID-19 response, the Outcome Delivery plan and the Quarterly Performance and Risk Reports.

The NEBMs have continued to support the department and the civil service more widely. This year, the department worked with the UK Infrastructure Bank (UKIB) to support it in its establishment as a new ALB. Gay Huey Evans CBE sat as interim NEBM on the board of UKIB as it was being set up and established. The Department for Transport recruited a new Chair for HS2 Ltd and Edward Braham assisted them as a panel member in the recruitment campaign, and Zarin Patel sat on the Steering Board for the Darlington Economic Campus.

Lord (Jonathan) Hill, Lead Non-Executive, HM Treasury

Helping the department navigate through challenging times and support the delivery of its objectives

Our Non-Executive Board Members provide support, challenge, experience and expertise across governance and assurance, business improvement, policy development, investment cases and project delivery. In addition to our roles as members of the Board and relevant sub-committees, we have supported Ministers and officials on a wide range of activities, including: priority programmes, such as the Police Uplift Programme; Future Border and Immigration System; Emergency Services Mobile Communications Programme; New Plan for Immigration; COVID-19 recovery; the Afghan and Ukraine crises and resettlement schemes; the Violence against Women and Girls and Domestic Abuse strategies; supporting Wendy Williams’ return to assess the Home Office response to the Windrush Lessons Learned Report; and, the One Home Office Transformation Programme which has a number of work strands including organisational design, productivity and efficiency and culture and ways of working.

The Board met four times in 2021-22. It focussed on Afghan resettlement; the crisis in Ukraine; One Home Office Transformation; managing the asylum system through summer pressures; and departmental delivery against people priorities, the four Outcome Delivery Plans and manifesto commitments. The Board is composed of the Ministers and Non-Executive Board Members, the Permanent Secretaries, DG for Corporate Enablers, DG for Delivery, and the DG for Science, Technology, Analysis and Research.

The annual effectiveness evaluation was replaced by a broader governance review conducted during the Autumn / Winter of 2021 in which the Departmental Board’s purpose, portfolio and membership was reviewed. Membership of the Board was enhanced to strengthen discussion on delivery priorities supported by key performance indicators. An Independent Review, as stipulated in the Corporate Code of Governance, will be conducted in Spring 2022 to inform the structure of the Board in 2022-23.

Sue Langley OBE, Lead Non-Executive, Home Office

Supporting the department through unprecedented challenging times

This year has seen the Department for International Trade continue to take control of the UK’s independent trade policy, against the challenging backdrop of COVID-19 and the crisis in Ukraine. I would like to acknowledge the swift pivot this department has made to respond to the situation in Ukraine and note the Departmental Board’s thanks to our teams for the work being delivered. The whole organisation, led by the Rt Hon Anne-Marie Trevelyan MP, remains committed to the Department’s objectives. This has helped to drive forward the UK’s important trade agenda, establish free trade agreements with partners across the globe, support businesses to export, and promote inward investment and the rules-based international trading system.

I would like to thank Dr Dambisa Moyo, Douglas Carswell, Sir Stephen O’Brien and Noël Harwerth for their support over the past year. Along with my fellow Board members and committee members on the Audit and Risk Assurance Committee (ARAC) we are responsible for supporting the Secretary of State and to ensure the Department can deliver on her ambitions. The whole team brings a variety of expertise to the table, and I am grateful to them all for their support in delivering the Department’s priorities.

Over the past year the Board has considered the breadth of the Department’s business, including delivery and performance against the Outcome Delivery Plan, the Free Trade Agreement programme, the Export Strategy and key events such as the Global Investment Summit and COP26. In addition, the Board continues to review the strategic risk register and also refreshed the Department’s risk appetite statement.

The ARAC is supported by Sir Stephen O’Brien and a strong team of independent members: Hanif Barma who served throughout the year, and Robert Milburn and Jim Watson who joined in September 2021 and April 2022 respectively. I would like to thank Chris Jenkins and Jos Creese whose respective tenures on ARAC ended in October 2021 and January 2022. Our work has included reviewing the Department’s cyber security standards, HR processes and policies relating to joiners, movers and leavers, mandatory training and the comprehensiveness of assurances provided to the Permanent Secretary. I am pleased with the progress made across HR processes and policies and the committee will continue to review these in the year ahead.

The non-executives meet regularly as a group and engage frequently with senior members of the executive through informal briefings, discussions and formal meetings throughout the year. I am keen that non-executives continue to maintain a central role in supporting the Department with championing exports, attracting inward investment and accelerating the benefits of free trade. In this task we are supported by a team of hardworking officials who ensure the various boards function smoothly.

I would also like to thank both Permanent Secretaries with whom we have worked over the past year. Both John Alty and James Bowler have been keen to ensure the involvement of the non-executives. I am also especially grateful to the Secretary of State and her impressive team of ministers whose ambitions we are here to help deliver.

Dominic Johnson CBE, Lead Non-Executive, Department for International Trade

Providing support and advice to deliver on departmental priorities

The Non-Executive Board Members contribute to the work of DLUHC by providing consistent advice and challenge at Board and Non-Ministerial Board meetings, ARAC meetings, and to ministers and officials through other channels. The NEBMs frequently engage with the department’s complex programmes such as building safety and cladding remediation, local government stewardship, and planning reform. The NEBMs play a significant role in helping the department navigate strategic challenges arising from its newly expanded responsibility of Levelling Up the United Kingdom, including for example by ensuring that effective governance structures were in place across the department.

In 2021/22, our NEBMs chaired the annual Governance Assurance Panel (GAP) exercise that assessed the effectiveness of the governance, internal controls and risk management arrangements implemented by Directors in their responsibilities towards the delivery of DLUHC’s strategic objectives. In total there were six panels covering each portfolio.

The findings were used to inform the Governance Statement in DLUHC’s 2021/22 Annual Report and Accounts and enabled the department to strengthen its internal controls and have greater oversight over delivery and operational activity, at a time when it faced new response work in relation to Afghanistan and Ukraine. Through the panels, the NEBMs highlighted areas the department could strengthen to support the shift of approaches, priorities and delivery mechanisms brought about by the major shift in policy direction following the establishment of DLUHC. The NEBMs also identified some key priorities for the department for the following year, including strengthening DLUHC’s net zero approach, increasing the department’s leverage across Whitehall to successfully deliver the missions in the Levelling Up White Paper, and establishing a more consistent approach to crisis management.

Overall, across 2021/22, as the department began to emerge from its Covid-19 response activity to transition into DLUHC, the NEBMs have been important in ensuring strategic focus and effective delivery, offering a wide lens approach to the department’s work and utilising their specific skills and expertise in business, delivery, risk management and problem solving.

Dame Alison Nimmo DBE, Lead Non-Executive, Department of Levelling Up, Housing and Communities

Leading on departments’ workforce improvements

Over the past 12 months, Non-Executive Board Members (NEBMs) have taken an active role in reviewing and challenging the department on its implementation of the Integrated Review (IR), Transformation and Head Office Reform. Through the bi-monthly Non-Executive Board Member meeting, which I chair, non-executives have been given sight of the department’s progress on key priority areas, including Digital Transformation, Acquisition Reform, Nuclear and the Defence Security and Industrial Strategy. Through this forum we have been able to advise and provide challenge on areas that will determine the department’s ability to achieve efficiency savings as set out in the Spending Review (SR). The department has held a series of Strategy Stocktakes over the year to review the strategy in light of current events.

As NEBMs we have been invited to advise on proposals through a series of briefs and workshops, including the department’s response to CS25 and advice on Defence Nuclear Enterprise financing. In addition, we have been given briefings on the Defence Plan throughout its formation and I review the Outcome Delivery Reports (ODP) on a quarterly basis prior to their submission.

I believe that NEBMs play an important role in advising and challenging departments and have been discussing with the Permanent Secretaries how we ensure that high quality NEBMs are appointed across the department going forward, with particular focus on diversity and skillset. I am leading the appointment of a new non-executive to the Defence Board and two additional non-executives to the Audit and Risk Assurance Committee. Our NEBM, who also Chairs the People Committee also sits on the Senior Appointments Committee (SAC) which determines senior Military appointments.

As well as our role as non-executives on the Defence Board, we sit as members on some of the main departmental boards. This includes the People Committee, the Defence Audit and Risk Assurance Committee, the Digital Information Steering Committee and the Defence Nuclear Executive Board.

As NEBMs we are actively supporting the department in its activities, and I am confident that this will continue to develop over the coming year.

Brian McBride, Lead Non-Executive, Ministry of Defence

Driving long-term improvement and changes in departmental operating effectiveness

The Non-Executive Board Member team has been fundamental in supporting the development of the Outcome Delivery Plan. Paul Smith led this work, providing a sounding board for the department’s strategic planning teams, helping planned improvements across the system as well as metrics to monitor progress. Ahead of the ODP being finalised, both Paul Smith and I reviewed the plan, offering advice to support the Permanent Secretary in making the final assessment of the plan deliverability.

Shirley Cooper has been an active member of our Audit & Risk Assurance Committee (led by Paul). Shirley led deep dive reviews into commercial contracts and cross government contract management and joined the newly formed Commercial Strategy Board in the Crown Commercial Service as well as being a longstanding member of the Government Commercial Oversight Committee. She was a member of the Information Risk and Security Board and the newly formed Prison Reform Board, bringing external scrutiny to both.

Nick Campsie has chaired the Probation Challenge Panel which oversees the implementation of the new model for probation delivery.

One of my activities this year has been to Chair the Court Reform Challenge Panel. This provided independent challenge, support, and additional assurance on the rigour of decision making and the overall health of the programme. Court Reform is an important programme for the department and should be instrumental in helping accelerate court recovery plans, but it is very reliant on third parties to deliver its benefits.

Mark Rawlinson, Lead Non-Executive, Ministry of Justice

Providing support and advice to deliver on departmental priorities

Last year I was pleased to report on the significant progress that the Northern Ireland Office Board had made on setting its objectives, delivering on government commitments to the people of Northern Ireland and how this work and the Board’s robust approach to risk management would enable the Department to be more proactive and anticipate future challenges.

However, I also stressed that the complex and sensitive environment in which the Department operates should not be under-estimated and while risk could be managed to an acceptable level there is always the unpredictability of events occurring that are outside the direct control of the Department. Such an event occurred on 3 February 2022 when the then First Minister resigned and the Northern Ireland Executive was unable to continue to function.

Against this backdrop the Department had to quickly reassess its allocation of limited resources and reprioritise delivery plans to ensure that re-establishing the Executive was the primary objective. The non-executive team played a vital role in supporting the Board through their independent challenge and scrutiny of plans to ensure they were robust and could deliver meaningful results. I also worked closely with the Secretary of State, to review the skills mix of the Board and the non-executive team to ensure that it met his needs in the changing delivery environment.

I was grateful for the quality of the expert advice that was regularly received from officials and the Permanent Secretary on the political position that helped the non-executive team understand the nuances and for the clear discussion papers provided to the Board. During board level discussions, the non-executive team was invited to contribute to, and influence, plans to coordinate activities to resolve the political impasse and we used our networks to relay messages to help OGD non-executives understand the issues.

Particularly, I was impressed with the way the whole Department sprang into action to deal with the crisis at hand while also managing the development of very sensitive policy proposals on dealing with the legacy of the past in Northern Ireland and delivering a wide range of other initiatives to support the Northern Ireland economy recovery in a post pandemic environment.

Leslie Philpott, Lead Non-Executive, Northern Ireland Office

Supporting departmental priorities across the board

DfT’s Non-Executive Directors (NEDs) use their experience and expertise to provide valuable contributions that support the Department in meeting its strategic objectives. This can most readily be seen in our involvement in key departmental Committees like the Investment Projects and Delivery Committee (IPDC) which provides review, appraisal and scrutiny of major investment decisions and programme progress, as well as in chairing the Group Audit and Risk Assurance Committee (GARAC) which among other things is responsible for signing off the Department’s Annual Report and Accounts.

Aside from participation in these key governance functions, we also support the Department through a variety of other activities both on the domestic and international stages. This can include bespoke workstreams to target particular areas of focus. For instance, Tony Poulter and I co-led a Savings and Efficiency Review across DfT’s three largest delivery bodies in 2021.

Ranjit Baxi sat on the Net Zero Transport Board, a Minister-chaired panel of expert stakeholders which reviewed the Transport Decarbonisation Plan (TDP) ahead of its publication. Dame Sarah Storey sat on a panel at the first virtual International Transport Forum’s Annual Summit, part of a global body that covers all transport modes. Her panel session examined the role public transport could play in a world of emerging new mobility solutions.

Tracy Westall serves as the Department’s Diversity Champion and Whistleblowing Champion as well as Chair of the DfT Public Appointment Diversity Engagement Group. Richard Keys led a review of the Department’s approach to secondary legislation, as well as co-authored a report on its findings.

The scope of our activity is necessarily broad as we seek to support the Department in driving forward an ambitious programme of work to make journeys cleaner, improve the experiences of those using the transport network, and support productivity and economic growth.

With the announcement of a new Prime Minister, DfT’s Non-Executive Directors stand ready to continue to support the Department in achieving its strategic objectives.

Ian King, Lead Non-Executive, Department for Transport

Providing support and advice to deliver on departmental priorities

The Scotland Office and Office of the Advocate General Non-Executive Board Members continue to support the Ministerial Team and officials in the important work of the Scotland Office and the Office of the Advocate General. The Scotland Office Outcome Delivery Plan is the cornerstone of departmental business planning and risk management, and is the foundation of the effective operation of the Offices’ Joint Management Board.

Non-Executive Board Members have challenged officials to continue to work on developing performance management metrics that accurately reflect, and measure directly, the work of the Scotland Office and shared cross-cutting objectives across the three Territorial Offices, the Department for Levelling-Up, Housing and Communities and the Cabinet Office. The Non-Executive Board Members are working closely with officials to support the agreement of additional performance management metrics and have been mentoring this work in dedicated sessions with officials and in formal meetings of the Offices’ Joint Management Board. Non-Executive Board Members are focused on ensuring that the best possible quality of data and information is put before the Joint Management Board. This will ensure that the Board can accurately assess the performance of the department and guide efforts when required, to ensure that the Scotland Office continues to deliver effectively and successfully, both across Whitehall and in Scotland.

This piece of work by the Non-Executive Board Members underpins a project that the non-executives are an integral part of, to embed throughout the Scotland Office a revised approach to business planning and risk management. Non-Executive Board Members are mentoring Divisions across the department, by using their broad and varied experience across both the private and public sectors, in developing business plans and a process which will support the Board, Ministers and officials in the assessment of performance and the management of delivery of the Scotland Office Outcome Delivery Plan going forward.

Tom Harris, Lead Non-Executive, Scotland Office

Providing expertise in a challenging and complex environment

As part of its annual review of Departmental Board effectiveness, the Lead Non-Executive recommended improvements in the metrics available to the Board to enable more effective scrutiny of performance. The improvements identified were in two areas; the Outcome Delivery Plan; and the wider performance of the Department which included more detailed functional performance measures (which also take account of mandatory requirements in Functional Standards). On the recommendation of the ODP Implementation Committee, the Board now receives habitually a dashboard of metrics which sets out the detail of performance in regard to ODP outcomes. Work on the corporate scorecard is ongoing, but the Departmental Board expects to receive a draft for approval at its next meeting. Both initiatives are expected to enhance the role of the Board in regard to its understanding and ability to challenge Departmental performance.

Alison White, Lead Non-Executive, Wales Office

Supporting the department through unprecedented challenging times

Supporting the department through unprecedented challenging times

During my second year as the DWP Lead Non-Executive Director, the Department has been faced with the formidable task of contending with a continuing pandemic and navigating the road to recovery.

I have provided challenge and advice to further the development of the 3-year Departmental Plan, firstly to assess the overall deliverability of the Spending Review settlement and then how to split the two years up to December 2023 into six-month chunks with milestones and trajectories to allow the Board to track progress.

I chaired the Kickstart Programme Board and helped develop a plan to accelerate the delivery and improve the department’s approach to marketing. A lot of work was done to improve and make “slicker” the systems and processes, which has resulted in performance exceeding the pledged target of 150,000 starts for supported young people to get a chance for a rewarding future.

I am also part of the formation of a Social Housing taskforce which includes representatives from DWP, HMT, DLUHC and Homes England. We have now agreed to the principal agreement that the ‘securitisation’ idea is an effective way to achieve excellent value from the £30bn housing support bill, while expanding the supply and quality of social housing.

My fellow NEBMs have also contributed widely to the department and here are some examples – David Holt provided a deep dive into the number of conflicting and emerging priorities facing the Department, including the need for ongoing resource to address backlogs particularly with Personal Independence Payment (PIP).

Ashley Machin, Chair of the Transformation Advisory Committee (TAC) provided an opportunity for TAC Non Executive Members (NEMs) to take a deep dive into both the digital approach to Data Analysis and Fraud and Error. This required an understanding of digital transformation that has been undertaken over the past five years to create a common understanding of the Department’s baselined capability, which allowed NEMs to challenge and suggest possible improvement to the Transformation SR.

David Bennett has had an active role in supporting the Data Capability Review to accelerate the data and digital capabilities supporting the drafting of the high-level roadmap to address the root causes in each theme, with a short-term tactical 90-day plan until the end of the financial year 2021/2022. Which has enabled production of an operational dashboard which drives performance against priorities in our Jobcentres and can inform longer term recommendations for 2022/2023.  

Valerie Hughes-D’Aeth led The Independent Case Management Review with ACAS, commissioned because of several high-profile tribunal losses in 2019/20, the findings recognised that while the department had made progress in case management, targeted learning, and reflection to enable lessons learned. However, the legal, reputational and colleague engagement risks when dealing with complex case work continues to be monitored.

Nick Markham, Lead Non-Executive, Department for Work and Pensions

Annex 2: List of Central Government Non-Executive Board Members (as at 31 March 2022)

Department	Lead Non-Executive	Non-Executive Board Members
BEIS	Ann Cairns	Nigel Boardman, Stephen Hill, Peter Mather, Vikas Shah
CO	Anand Aithal	Michael Ashley, Michael Jary, Lord Hogan Howe, Henry De Zoete
DCMS	Claudia Arney	Pryia Lakhani, Hemant Patel
DfE	Richard Pennycook	Ian Ferguson, Baroness Ruby McGregor-Smith, Toby Peyton-Jones, Nick Timothy
DEFRA	Henry Dimbleby	Elizabeth Buchanan, Colin Day, Ben Goldsmith, Lizzie Noel
DIT	Dominic Johnson	Douglas Carswell, Noel Harwerth, Dr Dambisa Moyo, Sir Stephen O’Brien
DfT	Ian King	Ranjit Baxi, Richard Keys, Tony Poulter, Dame Sarah Storey, Tracey Westall
DWP	Nick Markham	David Bennett, David Holt, Valerie Hughes-D’Aeth, Ashley Machin, Eleanor Shawcross-Wolfson
DHSC	Kate Lampard	Doug Gurr, Gerry Murphy
FCDO	Baroness Helena Morrissey	John Coffey, Ann Cormack, Beverley Tew
HMRC	Dame Jayne-Anne Ghadia	Patricia Gallan, Michael Hearty, Juliette Scott, Dr. Alice Maynard, Paul Morton
HMT	Lord Hill	Edward Braham, Gay Huey Evans, Zarin Patel
HO	Sue Langley	James Cooper, Michael Fuller, Jan Gower, John Paton, Phil Swallow, Tim Robinson
DLUHC	Vacancy	Pamela Chesters, Mary Ney, Dame Alison Nimmo, Lord Porter
MOD	Brian McBride	Kate Guthrie, Robin Marshall
MOJ	Mark Rawlinson	Nick Campsie, Shirley Cooper, Paul Smith
Northern Ireland Office	Leslie Philpott	Louise Wilson
OSSS	Tom Harris	Martin Dorchester, Ross Finnie, Stuart Patrick
OSSW	Alison White	-

1. The 16 Departments are: BEIS, CO, DLUHC, DCMS, Defra, DFE, DFT, DHSC, DIT, DWP, FCDO, HMT, HO, MOD, MOJ, one non-ministerial department (HMRC), and 3 Territorial offices (Scotland Office, Wales Office, Northern Ireland Office). ↩

2. Vinnicombe, S; de Largy, C; Battista, V; Anderson, D; Tessaro, M - p.6 (2021) “The Female FTSE Board Report”, Cranfield University ↩