Decision

Advice Letter: Penny Mordaunt, Member of the Transformation Advisory Board, British American Tobacco Plc

Updated 9 April 2025

1. BUSINESS APPOINTMENT APPLICATION: The Rt Hon Penny Mordaunt, former Leader of the House of Commons and Lord President of the Council. Paid appointment with British American Tobacco Plc.

You approached the Advisory Committee on Business Appointments (the Committee) under the government’s Business Appointments Rules for Former Ministers (the Rules) seeking advice on taking up a paid role as a Member of the Transformation Advisory Board with British American Tobacco Plc (British American Tobacco).

The purpose of the Rules is to protect the integrity of the government. The Committee has considered the risks associated with the actions and decisions made during your time in office, alongside the information and influence you may offer British American Tobacco as a former minister. The material information taken into consideration by the Committee is set out in the annex.

The Committee’s advice is not an endorsement of the appointment - it imposes a number of conditions to mitigate the potential risks to the government associated with the appointment under the Rules. 

The Ministerial Code sets out that ministers must abide by the Committee’s advice. It is an applicant’s personal responsibility to manage the propriety of any appointment. Former ministers of the Crown, and Members of Parliament, are expected to uphold the highest standards of propriety and act in accordance with the 7 Principles of Public Life.

2. The Committee’s consideration of the risks presented

The sale and regulation of tobacco and vapes was a government priority whilst you were in office and remains a priority under the new administration. Your responsibility, as Chair of the Parliamentary Business and Legislation Cabinet Committee, was to ensure that The Tobacco and Vapes Bill^{[footnote 1]} was given appropriate time and priority in the legislative programme. You did not meet with, nor did you make any policy, regulatory or commercial decisions specific to British American Tobacco whilst in office. Policy related to the Tobacco and Vapes Bill is owned by the relevant department (it is currently sponsored by the Department of Health and Social Care). Therefore, the Committee^{[footnote 2]} considered that the risk that this role could be seen as a reward for your decisions in office is limited. 

The Cabinet Office was not aware of any specific information you have had access to that would offer an unfair advantage to British American Tobacco. The Tobacco and Vapes bill has progressed past the second reading and the Bill has now moved onto the Committee stage, which is a matter for the current government and Parliament{^3]. Given that the matters you oversaw through the legislative programme in office are now in the public domain, privileged information you had access to is limited.  It is also relevant that you have been out of office for five months, creating a gap between your access to information in government and your role with British American Tobacco. 

There are risks associated with your influence and network of contacts gained whilst in ministerial office. In particular, British American Tobacco has a significant interest in current and future government policy, regulation, taxation and the shape of future decisions in respect of tobacco, vaping and related products. It has an active lobbying arm and you noted that lobbying will not form part of your role. To do so either directly or indirectly would be contrary to the lobbying ban that applies to all former ministers on leaving office.  

Given the risk you may be perceived to offer British American Tobacco unfair access to government, the Committee contacted the company to confirm compliance with its advice, including the ban on lobbying. British American Tobacco confirmed that your work will involve no lobbying, or other activities that would be incompatible with the government’s Rules and the Committee’s advice. 

3. The Committee’s advice 

The Committee considered the risks associated with your access to information are limited for the reasons above. Whilst you said you will not lobby, there is a risk your former role as a Cabinet minister will be seen to offer British American Tobacco unfair access to and influence within government.  Therefore, the Committee’s advice is that you should have no direct engagement with government on behalf of the company, as to do so would raise significant risks under the government’s Rules. 

Separately, as set out in the annex, British American Tobacco told the Committee that you will not be requested to undertake any activities that, directly or indirectly, might cause you to be, or might cause you to be perceived to be, in breach of any of the conditions imposed below. The Committee considered this confirmation by your employer as significant to its consideration.

The remaining conditions below seek to prevent you from making improper use of privileged information, contacts and influence to the unfair advantage of British American Tobacco.

In accordance with the government’s Business Appointment Rules, the Committee advises this appointment with British American Tobacco Plc be subject to the following conditions:

• you should not draw on (disclose or use for the benefit of yourself or the persons or organisations to which this advice refers) any privileged information available to you from your time in ministerial office;

• for two years from your last day in ministerial office, you should not become personally involved in lobbying the UK government or any of its arm’s length bodies on behalf of British American Tobacco Plc (including parent companies, subsidiaries, partners and clients); nor should you make use, directly or indirectly, of your contacts in the government and/or ministerial office to influence policy, secure business/funding or otherwise unfairly advantage British American Tobacco Plc (including parent companies, subsidiaries, partners and clients); 

• for two years from your last day in ministerial office, you should not provide advice to  or on behalf of British American Tobacco Plc (including parent companies, subsidiaries, partners and clients) on the terms of, or with regard to the subject matter of, a bid with, or contract relating directly to the work of the UK government or any of its arm’s length bodies;and 

• for two years from your last day in ministerial office you should not have any direct engagement on behalf of British American Tobacco Plc (including parent companies, subsidiaries, partners and clients) with the UK government.

The advice and the conditions under the government’s Business Appointment Rules relate to your previous role in government only; they are separate from rules administered by other bodies such as the Office of the Registrar of Consultant Lobbyists, the Parliamentary Commissioner for Standards and the Registrar of Lords’ Interests.^{[footnote 4]} It is an applicant’s personal responsibility to understand any other rules and regulations they may be subject to in parallel with this Committee’s advice.

By ‘privileged information’ we mean official information to which a minister or Crown servant has had access as a consequence of his or her office or employment and which has not been made publicly available. Applicants are also reminded that they may be subject to other duties of confidentiality, whether under the Official Secrets Act, the Civil Service Code or otherwise.

The Business Appointment Rules explain that the restriction on lobbying means that the former Crown servant/Minister “should not engage in communication with government (Ministers, civil servants, including special advisers, and other relevant officials/public office holders) - wherever it takes place - with a view to influencing a government decision, policy or contract award/grant in relation to their own interests or the interests of the organisation by which they are employed, or to whom they are contracted or with which they hold office.”

You must inform us as soon as you take up employment with this organisation, or if it is announced that you will do so and we will publish this letter on our website. Any failure to do so may lead to a false assumption being made about whether you had complied with the Rules.  You must also inform us if you propose to extend or otherwise change the nature of your role as, depending on the circumstances, it may be necessary for you to make a fresh application.

Once the appointment has been publicly announced or taken up, we will publish this letter on the Committee’s website, and where appropriate, refer to it in the relevant annual report.

4. Annex A - material information

4.1 The role 

British American Tobacco is a British multinational company that manufactures and sells cigarettes, tobacco and other nicotine products including electronic cigarettes and nicotine pouches. British American Tobacco has a significant interest in government policy and regulation and has resources focussed on influencing government decisions - for example lobbying for a reduction in taxes for cigarettes, legislation on vaping and the prevention of counterfeit goods.

You wish to take up a part-time, paid role as a Member of the Transformation Advisory Board for British American Tobacco. You said your role would be part of an internal board established to test British American Tobacco’s strategy to reduce its combustible products, i.e. cigarettes. You said that your role will not involve any contact with government. 

The reduction of smoking and vaping was a priority of the previous government and continues to be so for the current government^{[footnote 5]}. You abstained from the vote on the smoking ban in April 2024. 

4.2 Dealings in office 

You said that you did not make any policy, regulatory or commercial decisions specific to British American Tobacco, nor did you meet the company whilst in office. 

You said your involvement in the smoking and vaping bill in 2024 was limited to being the Chair of the Parliamentary Business and Legislation Cabinet Committee. This Committee is responsible for devising the legislative programme to reflect government’s priorities and seeking to resolve handling issues. During your time as Chair, this included the Tobacco and Vapes Bill. The second reading of the Tobacco and Vapes Bill passed recently and it has moved onto the Committee stage which is a matter for the current government and Parliament. You said that you did not have any dealings with the development of the policy or with industry stakeholders.

4.3 Departmental assessment 

The Cabinet Office confirmed the details in your application, including no overlap with your responsibilities or access to information, and recommended the standard conditions.

5. Annex B- Correspondence from British American Tobacco

Dear [redacted]

RE: Application of The Rt Hon Penny Mordaunt to provide consultancy services to BAT Investments’ Tobacco Harm Reduction Advisory Group

Thank you for your email of 16 December 2024 relating to the application of The Rt Hon Penny Mordaunt to provide consultancy services to the Tobacco Harm Reduction Advisory Group (THR Advisory Group) established by British American Tobacco (Investments) Limited (BAT Investments).

Under this engagement, Ms Mordaunt would be asked to contribute her insights on the topics of tobacco harm reduction, regulation, stakeholder communications and broader strategic transformation, to be discussed at meetings of the THR Advisory Group (three meetings per year are anticipated).

I write to confirm that BAT Investments acknowledges and understands the conditions applicable to the provision of consultancy services by Ms Mordaunt to the THR Advisory Group, in view of the UK Government’s Business Appointments Rules which apply to former ministers for two years following vacation of their office as follows:

• Ms Mordaunt should not draw on (disclose or use for the benefit of herself or the persons or organisations to which these conditions refer) any privileged information available to her from her time in ministerial office;

• For two years from Ms Mordaunt’s last day in ministerial office, she should not become personally involved in lobbying the UK government or any of its arm’s length bodies on behalf of British American Tobacco p.l.c. (including parent companies, subsidiaries, partners and clients), nor should she make use, directly or indirectly, of her contacts in the government and/or ministerial office to influence policy, secure business/funding or otherwise unfairly advantage British American Tobacco p.l.c. (including parent companies, subsidiaries, partners and clients);

• For two years from Ms Mordaunt’s last day in ministerial office, she should not provide advice to or on behalf of British American Tobacco p.l.c. (including parent companies, subsidiaries, partners and clients) on the terms of, or with regard to the subject matter of, a bid with, or contract relating directly to the work of the UK government or any of its arm’s length bodies; and

• For two years from Ms Mordaunt’s last day in ministerial office she should not have any direct engagement on behalf of British American Tobacco p.l.c. (including parent companies, subsidiaries, partners and clients) with the UK government.

BAT Investments confirms that it will abide by the above conditions. Ms Mordaunt will not be engaged to conduct any direct or indirect lobbying of the UK Government on behalf of BAT Investments or any of its affiliated companies, and specifically, Ms Mordaunt will not be requested to undertake any activities that, directly or indirectly, might cause her to be, or might cause her to be perceived to be, in breach of any of the conditions set out above.

Please also note the further additional measures to support compliance:

• BAT Investments has requested Ms Mordaunt to disclose any potential conflicts of interest in the context of her provision of consultancy services to the THR Advisory Group, so that in the event any potential conflict of interest arose, appropriate steps could be taken to prevent a conflict.

• As part of Ms Mordaunt’s terms of appointment to the THR Advisory Group, she has been requested:
  • to comply with applicable laws, regulations and directions in her provision of consultancy services to the THR Advisory Group (and in this context, we would expect applicable directions to include the UK Government’s Business Appointments Rules and the conditions specified by ACOBA); and
  • not to hold herself out as having any authority to represent the THR Advisory Group, BAT Investments or any of its affiliated companies.

• BAT Investments will arrange for its personnel, and any personnel of its affiliated companies, that work with Ms Mordaunt in the context of her provision of consultancy services to the THR Advisory Group to be briefed on the conditions specified by ACOBA to support ongoing compliance with these conditions.

• BAT Investments will arrange for the outcomes and actions arising from meetings of the THR Advisory Group to be monitored appropriately on an ongoing basis for adherence to the conditions specified by ACOBA.

It is noted that the confirmation provided by BAT Investments may be included in your advice and may be published when your advice on this matter is finalised.

Please let me know if you would like any further information.

Yours sincerely,

Dr James Murphy Director, Research & Science For and on behalf of British American Tobacco (Investments) Limited

1. https://www.gov.uk/government/speeches/tobacco-vapes-bill-second-reading ↩

2. This application for advice was considered by Andrew Cumpsty; Isabel Doverty; Hedley Finn OBE; Sarah de Gay;  Dawid Konotey-Ahulu CBE DL; The Rt Hon Lord Eric Pickles; Michael Prescott; The Baroness Thornton and Mike Weir. ↩

3. All Peers and Members of Parliament are prevented from paid lobbying under the House of Commons Code of Conduct and the Code of Conduct for Members of the House of Lords. Advice on obligations under the Code can be sought from the Parliamentary Commissioners for Standards, in the case of MPs, or the Registrar of Lords’ Interests, in the case of peers. ↩

4. https://www.gov.uk/government/news/smoking-ban-introduced-to-protect-children-and-most-vulnerabl ↩