As PublicTechnology sources criticise addition to boardroom of ministers and directly appointed short-term members, department says appointments adhered to ‘relevant guidance’ and permanent roles will soon be open for applications
HM Revenue and Customs will soon launch recruitment for permanent non-executive directors after a recent shake-up that sources claim was not sufficiently rigorous and has politicised the board of a non-ministerial department.
PublicTechnology reported on Monday that two new non-executive directors – including Government Digital Service founder Mike Bracken, as well as former Office for Tax Simplification official Bill Dodwell – had been added to the HMRC board.
Their appointment was preceded by the removal of four former non-execs that previously served directly on the department’s board or on one of its specialist sub-committees: David Cooper; Susie Warran-Smith; Thomas Taylor; and Elizabeth Fullerton-Rome.
It is understood that the quartet were all informed in August that their services would no longer be required. Sources indicate that it was communicated to the departing directors that a key reason for the shake-up was a desire for the new minister that oversees the department’s operations – exchequer secretary to the Treasury James Murray – to make his own appointments.
The outgoing board members concluded a period of one month’s notice on 22 September, two days before it was announced that Murray would take over as chair of HMRC’s board: the first time that a politician, rather than a civil servant or non-executive, has held this role.
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Bracken and Dodwell’s appointments were confirmed in a government press release on Wednesday. Both had previously served on an expert panel convened by the Labour party while in opposition to advise on modernising HMRC and the wider tax system. The consultancy founded by Bracken after leaving government, Public Digital, has also made donations in kind to Labour via paid secondments – although the company indicated that it does not currently work with HMRC, nor will it do so in the future.
Neither of the two new HMRC boardroom appointments were advertised publicly or made open for applications. Sources told PublicTechnology that this contrasts with what is typically a rigorous and lengthy process, which is invariably run by external recruitment specialists and incorporates up to six months’ worth of interviews with candidates and referees, as well as extensive national security and financial background checks.
In response to concerns raised in relation to the new role of the minister and the process by which the new directors were hired, HMRC indicated that the two appointments have only been made on an interim basis to fulfil a one-year fixed term – and that permanent non-exec posts will be advertised “shortly”.
A spokesperson for the department said: “This is a temporary appointment made in accordance with the relevant guidance. Non-executive directors are required to register their interests and must abide by the Code of Conduct for Board Members of Public Bodies.”
Yes, minister?
HMRC’s spending is overseen by a minister from HM Treasury, through whom it also reports to parliament. But the department’s own governance guidance on GOV.UK states that: “HMRC’s status as a non-ministerial department is intended to ensure that the administration of the tax system is fair and impartial.”
This being the case, the executive leader – permanent secretary Sir Jim Harra – is “responsible for delivering the departmental strategy and for the organisation’s performance”, the guidance adds.
In announcing the unprecedented decision to install a minister to chair the board, chancellor Rachel Reeves said that it would “strengthen political accountability and delivery”.
The move was one of several HMRC reforms announced during last month’s Labour party conference, where Reeves also revealed plans for the department to develop a new digital transformation strategy and adopt electronic invoicing.
To support these transformation plans, Bracken will now chair the HMRC board’s Modernisation and Reform Committee.
His role at the tax agency marks the second time a high-profile figure from Public Digital has been appointed to a government role since the new administration took power. The consultancy’s former partner Emily Middleton was recently named as temporary director general for Digital Centre Design at the Department for Science, Innovation and Technology.
In light of the firm’s previous donations to Labour – via its funding of a £65,000 secondment for Middleton to the office of DSIT secretary Peter Kyle – the appointments have faced accusations of “cronyism”. Government has previously stated that Middleton’s appointment was made “in line with the civil service rules on recruitment”.
