Committee publication · Correspondence · 3 September 2025 · HC 899
Letter from Chancellor of the Duchy of Lancaster on Propriety and ethics, dated 21.7.25
From: Public Administration and Constitutional Affairs Committee
Inquiry: Propriety, ethics and the wider standards landscape in the UK
Summary
Chancellor of the Duchy of Lancaster Pat McFadden outlines the Government's wide-ranging reforms to ethics and integrity frameworks, announced 21 July 2025. Changes include establishing an Ethics and Integrity Commission, introducing minimum six-month service requirements for ministerial severance pay, closing the Advisory Committee on Business Appointments (ACOBA), and strengthening enforcement of the Business Appointment Rules. The Government declines to provide a full response to PACAC's May 2024 lobbying report.
Key findings
- Government establishing Ethics and Integrity Commission by reforming the Committee on Standards in Public Life to promote the Seven Principles, support codes of conduct, and report on standards system health.
- Ministerial severance pay reforms introduce six-month minimum service requirement; ministers leaving before six months or reappointed within three months must forfeit severance; serious breaches of Ministerial Code trigger forfeiture.
- ACOBA to close; business appointment advice for former ministers transferred to Prime Minister's Independent Adviser on Ministerial Standards (Sir Laurie Magnus); civil servants/special advisers function moves to Civil Service Commission.
- Former ministers found to have seriously breached Business Appointment Rules post-departure will be required to repay severance payments.
- Government will not provide full formal response to PACAC's May 2024 Lobbying and Influence report, citing prior administration context, but will keep Committee informed of any relevant lobbying policy decisions.
Tone
ProceduralTopics
Key actors
Pat McFadden, Simon Hoare, Prime Minister, Chancellor of the Exchequer, Sir Laurie Magnus, Civil Service Commission, Committee on Standards in Public Life
Notable line
“… a Government of service, not entitlement.”
Key Quotes
“The Government will be establishing an Ethics and Integrity Commission by strengthening and reforming the Committee on Standards in Public Life.”
“Under the new changes a new minimum service requirement will be introduced, with ministers expected to forgo their severance payment if they serve in office for fewer than six months.”
“The Ministerial Code sets out the high standards expected of all who serve in Government - a Government of service, not entitlement.”
“ACOBA's function in respect of former ministers will be transferred to the Prime Minister's Independent Adviser on Ministerial Standards, Sir Laurie Magnus.”
“… as the Committee's report was conducted and published under the previous administration, and framed in the context of policy restraints imposed by that administration, the Government will not be providing a full report response.”
Source · parliament.uk record ↗