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ah; GOV.UK
Guidance
Public bodies
This page provides background information on public
bodies and gives guidance to departments.
From: Cabinet Office
(Igovernment/organisations/cabinet-office)
Published 19 February 2013
Last updated 9 May 2024 —
Contents
— What is a public body?
— Classification of public bodies
— Arm’s-length bodies
— Public bodies reform programme 2020 to 2025
— Reviews
— Public bodies data
— Sponsorship good practice
— Code of conduct for board members of public bodies
— Governance
— Rules on lobbying and PR for all public bodies
— Closure of public bodies
What is a public body?
A public body is a formally established organisation that is publicly funded to
deliver a public or government service, though not as a ministerial
department. The term refers to a wide range of public sector entities.
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Classification of public bodies
To allow bodies to fulfil their purpose in a consistent, transparent system
that supports government accountability and efficiency, government
undertakes three separate types of classification of public bodies.
When the Office for National Statistics (ONS) economically classifies an
organisation as part of the public sector
(https:/Awww.ons.gov.uk/methodology/classificationsandstandards/economicstatistics
classifications/ukeconomicstatisticssectorandtransactionclassificationstheclassificati
onprocess) for the purposes of producing national accounts, it is indicatively
classified to one of three sub-sectors based on its characteristics. These
sub-sectors are central government, local government or public
corporations.
If a body is indicatively classified as central government by the ONS, it may
be subject to a separate administrative classification by the Cabinet Office.
Arm’s-length bodies
Arm’s-length bodies (ALB) are a specific category of central government
public bodies that are administratively classified by the Cabinet Office.
There are three types of ALB:
e An executive agency (EA) is a clearly designated unit of a central
government department. It is administratively distinct, but legally remains
a part of it. It focuses on delivering specific outputs within a framework of
accountability to ministers. Examples of EAs include DVLA
(https://www.gov.uk/government/organisations/driver-and-vehicle-licensing-
agency), HM Prison and Probation Service
(https://www.gov.uk/government/organisations/her-majestys-prison-and-
probation-service) and the Met Office
(https://www.gov.uk/government/organisations/met-office).
e Anon-departmental public body (NDPB) is a body which has a role in the
processes of national government. It is not a government department but
operates at arm’s length from ministers. NDPBs have different roles.
Some advise ministers while others carry out executive or regulatory
functions. They work within a strategic framework set by ministers.
Examples of NDPBs include the British Council
(https://www.gov.uk/government/organisations/british-council), Environment
Agency (https://www.gov.uk/government/organisations/environment-agency) and
the Health and Safety Executive
(https://www.gov.uk/government/organisations/health-and-safety-executive).
e Anon-ministerial department (NMD) is a government department in its
own right, but does not have its own minister. However, it is accountable
to Parliament through its sponsoring ministers. A non-ministerial
department is staffed by civil servants and usually has its own estimate
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and accounts. Examples of NMDs include the Food Standards Agency
(https:/www.gov.uk/government/organisations/food-standards-agency), HM
Revenue & Customs (https://Awww.gov.uk/government/organisations/hm-
revenue-customs) and Ofgem
(https:/Awww.gov.uk/government/organisations/ofgem).
The Public Bodies Handbook: part one (pdf, 888 kb)
(https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attach
ment_data/file/51957 1/Classification-of-Public_Bodies-Guidance-for-
Departments.pdf) provides further information about the types of public
bodies, and how they are classified.
The Public Bodies Handbook: part two (pdf, 843 kb)
(https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attach
ment_data/file/686716/The Approvals Process for the Creation of New Arm s-
Length_Bodies.pdf) sets out the ministerial approval process for the
establishment of new arm’s length bodies.
The Public Bodies Handbook: part 2.1
(https://www.gov.uk/government/publications/public-bodies-handbook-part-21-
setting-up-an-arms-length-body) provides an overview of how to set up a new
arm’s length body, through to the first review period.
Executive agencies: a guide for departments (pdf, 1,010 kb)
(https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attach
ment_data/file/690636/Executive Agencies_Guidance.PDF) describes the
characteristics and structures of executive agencies and provides guidance
on the processes for their creation, review, merger and abolition.
Public bodies reform programme 2020 to 2025
The joint HM Treasury and Cabinet Office public bodies reform programme
was established in November 2020. Its mission is for accountable, effective
and efficient public bodies that are aligned to its five priority workstreams:
1. Anew strategy for public bodies.
2. Improved gateways for establishing and reviewing public bodies.
3. Good governance: enhanced departmental sponsorship and boards of
public bodies.
4. Data: improved data collection and the use of data to change behaviours.
5. Identifying greater efficiencies.
These workstreams align with the ambitions and commitments of a
modernised Civil Service described by the 2021 Declaration on Government
Reform (https://www.gov.uk/government/publications/declaration-on-government-
reform/declaration-on-government-reform).
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Reviews
A review of a public body looks at four quadrants of a body’s performance,
scrutinising its accountability, governance arrangements, efficacy, and
efficiency.
Reviews must assure the public, ministers and the sponsoring department's
principal accounting officer that a body’s function remains useful and
necessary. Tools and guidance for reviews of public bodies were published
in April 2022 (https://www.gov.uk/government/publications/public-bodies-review-
programme).
Reviews must be led by an independent lead reviewer. Cabinet Office holds
a lead reviewer pool of candidates for this role. Departments appointing a
lead reviewer can contact the Public Bodies Reform Mailbox to request
access to the pool.
Alist of public bodies prioritised for review in 2022/23
(https://www.gov.uk/government/publications/public-bodies-review-programme/list-
of-public-bodies-for-review-in-202223) and 2023/24
(https://www.gov.uk/government/publications/public-bodies-review-programmellist-
of-public-bodies-for-review-in-202324) can be found on gov.uk.
Public bodies data
The public bodies directory is a data-gathering exercise providing a single,
transparent source of top-level administrative and financial data on ALBs.
The most recent publication is Public Bodies 2020
(https://www.gov.uk/government/publications/public-bodies-2020). Previous
editions dating back to 1999 can be found online
(https://www.gov.uk/government/collections/public-bodies). During 2010 and 2011,
there was no cross-government collective directory, as departments were
responsible for publishing their own reports.
Sponsorship good practice
Departments should appoint a dedicated partner (or sponsor) for each of its
arm’s length bodies. It is their responsibility to manage the relationship
between the department and the ALB, in line with the principles set out in
the code of good practice (https://www.gov.uk/government/publications/arms-
length-body-sponsorship-code-of-good-practice/arms-length-body-sponsorship-
code-of-good-practice).
Code of conduct for board members of public bodies
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Board members of public bodies must work to the highest personal and
professional standards. The Cabinet Office’s code of conduct
(https:/Avww.gov.uk/government/publications/code-of-conduct-for-board-members-
of-public-bodies) clearly and openly sets out the principles and standards
which all non-executive board members of UK public bodies are expected to
observe.
Governance
12 principles of governance for all public body non-executive directors
Non-executive directors (NEDs) on public bodies should demonstrate the 12
qualities outlined in 12 principles of governance for all public body NEDs
(https:/Awww.gov.uk/government/publications/public-bodies-non-executive-director-
principles/12-principles-of-governance-for-all-public-body-neds).
ALB boards: guidance on reviews and appraisals
Principles and resources to support regular arm’s length body board
effectiveness reviews and board member appraisals can be accessed on
the ALB boards: guidance on reviews and appraisals page
(https:/Awww.gov.uk/government/publications/arms-length-body-boards-guidance-on-
reviews-and-appraisals).
Non-executive director induction events
We support new public body NEDs to understand the unique context of
public sector governance and the expectations of the role.
We currently run quarterly NED induction events which are aimed at new
appointments to public service within the first six months of their
appointment. The Cabinet Office’s public bodies team can provide additional
information on these events.
Rules on lobbying and PR for all public bodies
There is a long-standing principle that public bodies must be politically
impartial, and must ensure the proper use of public money at all times. All
public bodies must comply with the rules on lobbying, attendance at party
conference, advertising, marketing and PR
(https://)www.gov.uk/government/publications/public-bodies-review-
programme/requirements-for-reviews-of-public-bodies#annex-b-rules-on-lobbying-
attendance-at-conference-advertising-marketing-and-pr-for-public-bodies).
Closure of public bodies
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It may become necessary to close a public body early. The reasons for
closure include the body completing its purpose or becoming obsolete.
Any government department considering a closure must first engage with
the Public Bodies team in the Cabinet Office, who can provide guidance on
the closures process.
Published 19 February 2013
Last updated 9 May 2024 + show all updates
All content is available under the Open Government Licence v3.0, except where otherwise stated © Crown copyright