The work of the Treasury Select Committee

1. The work of the Treasury Select Committee

2. Departmental Select Committees • In existence since 1979 • Shadow Government departments • Around 11 members in proportion to party composition of the House – the TSC has 13 • Across all the Committees, Chairs are allocated in proportion to party strength • Chairs elected by the House and Members elected by their parties since 2010 • Generally aim for collaborative, consensual working

3. Purpose and tasks • To examine the “expenditure, administration and policy” of the relevant Department and its associated public bodies • Most of this work is done through inquiries and one-off public hearings • Other specific tasks: • Scrutinise draft Bills • Scrutinise implementation of legislation • Pre-appointment hearings • Committees meet in private as well as in public for certain purposes

4. Setting the Committee’s agenda Ideas for inquiries or one-off evidence sessions come from a variety of sources, including: • MPs’ interests • New policyproposals from Government/EU • The public – eg. inquiry into the future of cheques • Breaking news – eg. LIBOR

5. Treasury Committee – specific tasks • Budget – report produced in time to inform parliamentary scrutiny of the Finance Bill • Autumn Statement • Spending Rounds • Quarterly Inflation Reports of the Monetary Policy Committee • Six-monthly Financial Stability Reports of the Bank of England • Pre-appointment hearings – including the Governor of the Bank of England

6. Departmental scrutiny and scrutiny of other public bodies • Annual session with HMT on the Treasury’s Annual Report and Accounts • Sub-committee regularly examines the performance of the Chancellor’s Departments, such as HM Revenue & Customs or the Crown Estate • Regular sessions with Bank of England, the Financial Conduct Authority and the Office of Budget Responsibility

7. Gathering evidence • Committee staff undertake background research • Written evidence received: • from any organisation or individual, including the Department • quantity and quality varies considerably; important to try to fill gaps and reach beyond ‘the usual suspects’ • usually published online with report • guides the lines of enquiry and selection of witnesses for oral evidence • research can be commissioned, e.g. from NAO • Devising and agreeing the programme of oral evidence and visits

8. Gathering evidence – oral evidence sessions Oral evidence session with the Chancellor, 12 December 2013

9. Oral evidence sessions • Usually held at Parliament • Committee can insist on witnesses’ attendance • Held in public, webcast and broadcast • Witnesses appear individually or in panels • Question and answer format • MPs given briefings and suggested questions • Witnesses are often given some warning of questions • The last session of an inquiry will usually be with the Secretary of State or other Ministers • Evidence has the protection of Parliamentary privilege • Transcript is published

10. Other ways of gathering evidence • The format of formal oral evidence sessions can be restrictive… • Study visits – home or abroad • Informal or private meetings • Web forums • Oral evidence away from Westminster • Other formats for meetings: public discussion, presentations

11. Producing and publishing a report • Discussion within Committee about main themes and arguments • Conclusions and recommendations based on written and oral evidence • Chairman’s draft • Consideration and agreement – Committees aim for consensus • Press notice and publication – some Committees have launch events • Timing is important

12. Response and follow-up • Government must respond within 60 days • Response usually published by the Committee • Responses vary; they can be formulaic and a ‘direct hit’ is rare • Opportunities for debate in main chamber or Westminster Hall • Reports can be ‘tagged’ as relevant to other debates • Follow-up sessions or even further inquiries may be held later

13. TSC reports and impact • Financial Services Bill (2012) – recommendations implemented in legislation • Office for Budget Responsibility (2011) – Committee given veto in law over appointment/dismissal of members of the Budget Responsibility Committee • The future of cheques (2011) – new payments regulator now established

14. Treasury Committee: examples of follow-up work • Current inquiry into PF2 follows on from 2011 report on PFI • Continuing work on accountability of the Bank of England following 2011 Committee report • TSC has taken on responsibility for assessing how Government and regulators have responded to the work of the Parliamentary Commission on Banking Standards

15. Select Committees and local government scrutiny: common issues and themes • Quality of scrutiny ultimately dependent on members • Chairman in particular is very influential • Members’ interests, expertise and time vary • The reputation a Committee establishes is important, as is the level of consensus • Sensitivity of agreeing recommendations in a p/Political context • Having an impact on the executive’s policy • Ability to highlight issues • Monitoring impact in the long term