UKPGA-2011-4 Budget Responsibility and National Audit Act 2011 UK

The Treasury must prepare a document, to be known as the Charter for Budget Responsibility, relating to the formulation and implementation of fiscal policy and policy for the management of the National Debt.

The Charter must in particular set out—

The Charter may contain such other material as the Treasury considers appropriate (and see also section 6).

The Treasury must lay the Charter before Parliament.

The Treasury may from time to time modify the Charter.

When the Charter is modified the Treasury must lay the modified Charter before Parliament.

The Charter (or the modified Charter) does not come into force until it has been approved by a resolution of the House of Commons.

The Treasury must publish the Charter and any modified Charter once approved by the House of Commons.

The Treasury must prepare a Financial Statement and Budget Report for each financial year.

The contents of a Financial Statement and Budget Report must conform to any provision set out in the Charter.

The Treasury must lay each Financial Statement and Budget Report before Parliament.

The Treasury must publish each Financial Statement and Budget Report.

There is to be a body corporate called the Office for Budget Responsibility.

Schedule 1 contains provision about the Office.

It is the duty of the Office to examine and report on the sustainability of the public finances.

The duty imposed on the Office by this section includes, in particular, the duties imposed by subsections (3) and (4) and section 4A.

The Office must, on at least two occasions for each financial year, prepare—

It must also, on at least one occasion for each financial year, prepare—

Any forecast, assessment or analysis prepared by the Office under subsection (3) or (4) must be included in a report.

Any report which the Office makes in pursuance of its duty under this section must include an explanation of the factors which the Office took into account when preparing the report, including (in particular)—

If a Minister of the Crown is proposing to make a fiscal announcement to the House of Commons in respect of—the Treasury must, before the announcement, request the Office to prepare a section 4(3) report that takes account of the measure or measures.

If, in the case of a measure in respect of which a request was required to be made in accordance with subsection (1) and in respect of which no such request has been made, the Office is of the opinion that the measure (either alone or in combination with other such measures) is fiscally significant, the Office must as soon as is reasonably practicable—

A measure or combination of measures is “fiscally significant” if the measure, or combination of measures, has a costing for a specified period that exceeds a specified percentage of the gross domestic product for a specified period.“Specified” means specified in, or determined in accordance with, the Charter for Budget Responsibility.

Subsections (1) and (2) do not apply in respect of a measure which—

The Charter may make provision for the purpose of supplementing this section (including provision about the meaning of expressions used in the preceding subsections that are not defined elsewhere in this section or in other provisions of this Act).

If the Treasury proposes to modify the Charter so as to include provision by virtue of this section, a draft of the proposed provision must be published at least 28 days before the modified Charter is laid before Parliament under section 1(6).

In this section—“fiscal announcement” means an announcement in respect of any matter mentioned in section 1(2)(c);“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;“request” means a request made in accordance with the Charter (whether the request is described in the Charter as a commission or in some other way);“section 4(3) report” means a report under section 4 which contains forecasts... under subsection (3) of that section.

It does not matter for the purposes of this section whether or not two or more measures are, or are proposed to be, announced at the same time or at different times.

Paragraph 29 of Schedule 1 applies in respect of the reference in this section to the Treasury Committee of the House of Commons as it applies in respect of references to that Committee in Schedule 1.

The Office has complete discretion in the performance of its duty under section 4 (but subject to subsections (2) and (3) of this section and sections 6 and 7).

The Office must perform that duty objectively, transparently and impartially.

Where any Government policies are relevant to the performance of that duty, the Office—

The Charter for Budget Responsibility may include guidance to the Office about how it should perform its duty under section 4, including (in particular) guidance about the time at which it is to prepare any forecast, assessment or analysis required to be prepared under subsection (3) or (4) of that section.

But the Charter must not make provision about the methods by which the Office is to make any such forecast, assessment or analysis.

The Office must, in the performance of its duty under section 4, act consistently with any guidance included in the Charter by virtue of this section.

If the Treasury proposes to modify the guidance included in the Charter by virtue of this section, a draft of the modified guidance must be published at least 28 days before the modified Charter is laid before Parliament under section 1(6).

This section applies to any report which the Office makes in pursuance of its duty under section 4.

The Office must—

The Office has a right of access (at any reasonable time) to all Government information which it may reasonably require for the purpose of the performance of its duty under section 4.

The Office is entitled to require from any person holding or accountable for any Government information any assistance or explanation which the Office reasonably thinks necessary for that purpose.

“Government information” means information held by any Minister of the Crown or Government department.

This section is subject to any enactment or rule of law which operates to prohibit or restrict the disclosure of information or the giving of any assistance or explanation.

The office of Comptroller and Auditor General (or, in Welsh, Rheolwr ac Archwilydd Cyffredinol) is to continue.

It is for Her Majesty by Letters Patent to appoint a person to be Comptroller and Auditor General.

Her Majesty's power is exercisable on an address of the House of Commons.

It is for the Prime Minister to move the motion for the address.

To do so the Prime Minister must have the agreement of the person who chairs the Committee of Public Accounts.

The person appointed holds office for 10 years.

The person may not be appointed again.

The Comptroller and Auditor General continues by that name to be a corporation sole.

The Comptroller and Auditor General continues to be an officer of the House of Commons. But section 4(4) of the House of Commons (Administration) Act 1978 (which provides for the application of provisions of that Act to staff employed in or for the purposes of the House of Commons) does not apply in relation to the office of Comptroller and Auditor General.

The person who is Comptroller and Auditor General may not be a member of the House of Lords.

The Comptroller and Auditor General is not to be regarded—

The person who is Comptroller and Auditor General may not hold any other office or position to which a person may be appointed, or recommended for appointment, by or on behalf of the Crown.

Before a person is appointed as Comptroller and Auditor General, remuneration arrangements are to be made in relation to the person jointly by the Prime Minister and the person who chairs the Committee of Public Accounts.

The remuneration arrangements—

But no element is to be performance-based.

The arrangements may in particular make provision for the principal civil service pension scheme (as defined in section 2(10) of the Superannuation Act 1972) to apply to service as Comptroller and Auditor General as if it were service in employment in the civil service of the State.

Amounts payable by virtue of this section are to be charged on, and paid out of, the Consolidated Fund.

The Treasury may by statutory instrument make regulations for purposes supplementary to this section so far as it relates to arrangements for pensions.

Regulations under subsection (6) may provide for a statutory provision not to apply, or to apply with modifications, in relation to arrangements for a pension payable to the Comptroller and Auditor General, including, in a case where provision within subsection (4) has been made, for the principal civil service pension scheme to apply with modifications.

A statutory instrument containing regulations under subsection (6) is subject to annulment in pursuance of a resolution of the House of Commons.

The Comptroller and Auditor General may resign from office by giving written notice to the Prime Minister.

Her Majesty may remove the Comptroller and Auditor General from office on an address of both Houses of Parliament.

This section applies to a person who was appointed as Comptroller and Auditor General under this Part but who no longer holds that office.

Before—the person must consult such person as is specified by the Commission.

Subsections (4) and (5) apply for the period of 2 years starting with the day after that on which the person ceased to be Comptroller and Auditor General.

The person must not—

The person must not, in any capacity, provide services to—

But subsections (4) and (5) do not prevent a person from holding any of the following offices—

The Comptroller and Auditor General has complete discretion in the carrying out of the functions of that office, including in determining whether to carry out an examination under Part 2 of the National Audit Act 1983 and as to the manner in which any such examination is carried out.

Subsection (1) is subject to—

The Comptroller and Auditor General must aim to carry out functions efficiently and cost-effectively.

The Comptroller and Auditor General must, as the Comptroller and Auditor General considers appropriate, have regard to the standards and principles that an expert professional provider of accounting or auditing services would be expected to follow.

For further provision that affects the carrying out of the Comptroller and Auditor General's functions, see (in particular)—

There is to be a body corporate called the National Audit Office (or, in Welsh, Y Swyddfa Archwilio Genedlaethol).

In this Part “NAO” means the National Audit Office.

Schedule 2 contains provision about NAO.

NAO's expenditure is to be paid out of money provided by Parliament.(But see sections 13(5) and 24(1) and paragraph 6(2) of Schedule 2.)

For each financial year NAO and the Comptroller and Auditor General must jointly prepare an estimate of NAO's use of resources.

This must cover (in particular) the resources required for the purposes of paragraph 2(1) of Schedule 3 (which requires NAO to provide resources for the Comptroller and Auditor General's functions).

The person who chairs NAO and the Comptroller and Auditor General must jointly submit the estimate to the Public Accounts Commission.

The Commission must—

In doing this the Commission must have regard to any advice given by the Committee of Public Accounts or the Treasury.

There is to be charged on and paid out of the Consolidated Fund any amount payable by an indemnified person in consequence of any liability for breach of duty (whether under a contract or otherwise) incurred by an indemnified person in relation to any audit, examination or inspection carried out as part of the Comptroller and Auditor General's functions.

The liability must not be to another indemnified person.

The following are indemnified persons—

In this Part—“NAO” has the meaning given by section 20(2);“Public Accounts Commission” means the body established by section 2 of the National Audit Act 1983;“statutory provision” means a provision of an Act or subordinate legislation (within the meaning of section 21(1) of the Interpretation Act 1978), whenever passed or made;“use of resources” is to be read in accordance with section 27 of the Government Resources and Accounts Act 2000.

For the purposes of this Part each of the following is a financial year—

In paragraph (a) of subsection (2) “the appointed day” means the day appointed for the purposes of that paragraph by an order made by the Treasury by statutory instrument.

Section 13 of the National Audit Act 1983 (interpretation of references to Committee of Public Accounts) applies for the purposes of this Part as it applies for the purposes of that Act.

Schedule 4 contains transitional provision.

Schedule 5 contains consequential amendments.

The Treasury may by order make such provision as it considers appropriate in consequence of any provision of this Act.

An order under this section may—

An order under this section is to be made by statutory instrument.

A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

In this section “subordinate legislation” has the meaning given by section 21(1) of the Interpretation Act 1978.

This Part comes into force on the day on which this Act is passed.

Section 27 and Schedule 6 come into force at the end of the period of 2 months beginning with the day on which this Act is passed.

The other provisions of this Act come into force in accordance with provision made by order made by statutory instrument by the Treasury.

An order under subsection (3) may—

Subject to subsection (2), this Act extends to England and Wales, Scotland and Northern Ireland.

The amendment or repeal of any enactment has the same extent as the enactment amended or repealed.

The Office is to consist of—(But see paragraph 3, which makes special provision about the appointment of the initial members of the Office.)

A person may be appointed under sub-paragraph (1)(a) or (b) only if the person has knowledge or experience likely to be relevant to the performance of the Office's duty under section 4.

An appointment under paragraph 1(1)(a) or (b) is to be for a period of 5 years (but see paragraph 3(5)).

An appointment under paragraph 1(1)(c) is to be for a period of no more than 5 years.

A person may not be appointed under paragraph 1 more than twice.

The consent of the Treasury Committee of the House of Commons is not required for the appointment under paragraph 1(1)(a) of a person who—

The period of the person's appointment under paragraph 1(1)(a) is to be taken to have begun with the appointment of that person to chair the non-statutory Office for Budget Responsibility.

The consent of the Treasury Committee of the House of Commons is not required for the appointment under paragraph 1(1)(b) of a person who—

The period of appointment under paragraph 1(1)(b) of each such person is to be taken to have begun with the appointment of that person as a member of the non-statutory Office for Budget Responsibility.

The first 2 appointments under paragraph 1(1)(b) may be for less than 5 years to secure that those appointments and the first appointment under paragraph 1(1)(a) each expire at different times.

The first 2 appointments under paragraph 1(1)(c) are to be made by the Chancellor of the Exchequer after consultation with the member appointed under paragraph 1(1)(a).

The Office may, with the approval of the Treasury—

Where—

A member of the Office may resign by giving written notice to the Chancellor of the Exchequer.

The Chancellor of the Exchequer may terminate the appointment of a member of the Office by giving the member written notice if—

But the appointment of a member appointed under paragraph 1(1)(a) or (b) is not to be terminated without the consent of the Treasury Committee of the House of Commons.

The functions of the Office are to be exercised on behalf of the Crown.

For the purposes of any civil proceedings arising out of those functions—

The Office's property is to be regarded as held on behalf of the Crown.

The Office may employ staff.

Staff are to be employed on such terms as to remuneration and other matters as the Office may, with the approval of the Minister for the Civil Service, determine.

Service as a member of staff of the Office is employment in the civil service of the State.

The Office must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister may determine in respect of the increase in the sums payable out of money provided by Parliament that is attributable to the provision of pensions, allowances or gratuities under section 1 of the Superannuation Act 1972 payable to or in respect of persons who are or have been members of staff of the Office.

The members appointed under paragraph 1(1)(a) and (b) constitute a committee of the Office to be known as the Budget Responsibility Committee.

The members appointed under paragraph 1(1)(c) constitute a committee of the Office to be known as the Non-executive Committee.

The Office may establish other committees.

A committee established by the Office may establish sub-committees.

A committee or sub-committee established under this paragraph may consist of or include persons who are neither members of the Office nor members of its staff.

Appointment as a member of such a committee or sub-committee of a person who is neither a member of the Office nor a member of its staff is to be on such terms as to remuneration and other matters as the Office may, with the approval of the Treasury, determine.

The Office may determine—

A committee established by paragraph 9 may determine its own procedure.

The Office may delegate functions to—

A committee established under paragraph 10 may delegate functions (including functions delegated to it) to a sub-committee.

The Budget Responsibility Committee is to perform the duties imposed by section 4(3) and (4).

Sub-paragraph (1) does not apply to those duties.

The delegation of a function under sub-paragraph (1) or (2) does not prevent the Office or the committee (as the case may be) from carrying out the function itself.

The application of the Office's seal is to be authenticated by the signature of—

A document purporting to be duly executed under the Office's seal or signed on its behalf—

This paragraph does not extend to Scotland.

The Office must prepare a report of the performance of its functions in each financial year.

The report must include, in particular, an assessment by the Non-executive Committee of the extent to which the Office's duty under section 4 has been performed in accordance with section 5(1) and (2).

The report relating to a financial year must be prepared as soon as possible after the end of the financial year.

The report must be sent to the Treasury.

The Treasury must lay the report before Parliament.

The Office must publish the report.

“Financial year” means—

The Non-executive Committee must, at least once in every relevant 5-year period, appoint a person or body to review and report on such of the Office's reports as the Committee determines.

In sub-paragraph (1) “the Office's reports” means the reports which—

The “relevant date” is—

A person or body may be appointed under this paragraph only if the person or body has knowledge or experience likely to be relevant to the performance of the Office's duty under section 4.

The Office may, with the approval of the Treasury, make payments to the person or body in respect of the performance of the person's or body's functions under this paragraph.

The Office must—

In this paragraph “relevant 5-year period” means—

The Treasury may make to the Office such payments out of money provided by Parliament as the Treasury considers appropriate for the purpose of enabling the Office to meet its expenses.

Payments are to be made at such times, and subject to any such conditions, as the Treasury considers appropriate.

The Office must—

Each statement of accounts must comply with any directions given by the Treasury as to—

The Office must send a copy of each statement of accounts to—before the end of the month of June next following the financial year to which the statement relates.

The Comptroller and Auditor General must—

The Treasury must lay before Parliament a copy of each such report and certified statement.

“Financial year” has the same meaning as in paragraph 15.

In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons subject to general statutory duty), under the heading “Regulatory, audit and inspection” insert at the appropriate place— “ The Office for Budget Responsibility. ”

The amendment made by sub-paragraph (1) ceases to have effect when the repeal of that Act by Schedule 27 to the Equality Act 2010 has effect for all purposes.

Any reference in this Schedule to the Treasury Committee of the House of Commons—

Any question arising under sub-paragraph (1) is to be determined by the Speaker of the House of Commons.

NAO is to have 9 members.

They are to be—

Neither NAO nor any of its members or employees is to be regarded—

NAO's property is not to be regarded as property of, or held on behalf of, the Crown.

One of the persons who is a non-executive member of NAO is to chair it.

It is for Her Majesty by Letters Patent to appoint that person.

Her Majesty's power is exercisable on an address of the House of Commons.

It is for the Prime Minister to move the motion for the address.

To do so the Prime Minister must have the agreement of the person who chairs the Committee of Public Accounts.

Her Majesty may by Letters Patent extend an appointment under this paragraph on the recommendation of the Prime Minister.

To make a recommendation the Prime Minister must have the agreement of the person who chairs the Committee of Public Accounts.

An extension of an appointment counts as a separate appointment for the purposes of paragraphs 5 to 7.

The other non-executive members are to be appointed by the Public Accounts Commission as follows.

If there is a vacancy, the person who chairs NAO must recommend a person to the Commission for appointment.

The Commission may—

An appointment under this Part of this Schedule is to be for a period of no more than 3 years.

A person may not be appointed under this Part of this Schedule more than twice.

The Prime Minister and the person who chairs the Committee of Public Accounts may jointly make remuneration arrangements in relation to the person who chairs NAO.

Amounts payable by virtue of sub-paragraph (1) are to be charged on, and paid out of, the Consolidated Fund.

The Public Accounts Commission may make remuneration arrangements in relation to any other non-executive member.

Amounts payable by virtue of sub-paragraph (3) are to be paid by NAO.

Remuneration arrangements under this paragraph—

The Public Accounts Commission may determine other terms for an appointment under this Part of this Schedule.

These terms may include restrictions on—

The person who chairs NAO may resign by giving written notice to the Prime Minister.

Any other non-executive member may resign by giving written notice to the Public Accounts Commission.

Her Majesty may terminate the appointment of the person who chairs NAO on an address of both Houses of Parliament.

The Public Accounts Commission may terminate the appointment of any other non-executive member by giving the member written notice if—

The employee members are to be appointed by the non-executive members as follows.

If there is a vacancy, the Comptroller and Auditor General must recommend a person to the non-executive members for appointment.

The non-executive members may—

The terms of an employee member's appointment are to be determined by the non-executive members.

The terms may include remuneration arrangements which—

Amounts payable by virtue of sub-paragraph (2) are to be paid by NAO (subject to sub-paragraph (4)).

If the employee is a participant in a pension scheme under the terms of the person's employment with NAO, the remuneration arrangements may make provision for the person's service as an employee member to be treated, for the purposes of the scheme, as if it were service as an employee of NAO.

NAO may employ staff.

In determining the terms of employment of any staff, NAO must have regard to the desirability of keeping the terms broadly in line with those applying to civil servants.

A person who is an employee of NAO may not hold any office or position to which a person may be appointed, or recommended for appointment, by or on behalf of the Crown.

The rules may include—

An employee of NAO who is not an employee member may be a member of a committee or sub-committee.

A person who is neither a member of NAO nor an employee of NAO may be a member of a committee or sub-committee, provided that no functions of NAO are delegated to the committee or sub-committee (see paragraph 23).

NAO may delegate functions to any of its members, employees or committees.

A committee may delegate functions (including functions delegated to it) to a sub-committee.

The delegation of a function does not prevent NAO or the committee (as the case may be) from carrying out the function itself.

Functions under the following provisions may not be delegated—

Resource accounts of the kind mentioned in section 5 of the Government Resources and Accounts Act 2000 must be prepared for NAO for each financial year by the person appointed as accounting officer under this paragraph.

The Public Accounts Commission must appoint the Comptroller and Auditor General or some other appropriate person as accounting officer.

The person appointed as accounting officer must carry out any other functions determined by the Commission.

NAO must appoint an auditor for NAO for each financial year.

The approval of the Public Accounts Commission is required for the appointment (including its terms).

The auditor must be eligible for appointment as a statutory auditor by virtue of Chapter 2 of Part 42 of the Companies Act 2006.

Section 1214 (independence requirement) and section 1216 (effect of appointment of a partnership) of that Act apply as if the audit of NAO were a statutory audit.

The auditor must examine NAO's resource accounts for the financial year.

Sections 6(1) and 25(2) of the Government Resources and Accounts Act 2000 apply (with any necessary modifications) in relation to the examination as they apply in relation to an examination by the Comptroller and Auditor General of the resource accounts of a department.

On completion of the examination the auditor must—

The Commission must lay the accounts and report before the House of Commons.

The terms of the auditor's appointment may require the auditor to carry out economy, efficiency and effectiveness examinations of the use of NAO's resources.

On completion of the examinations the auditor must prepare a report and send it to the Public Accounts Commission.

The Commission must lay the report before the House of Commons.

The auditor may require access at any reasonable time to any document where the auditor reasonably thinks it necessary for the purposes of the auditor's functions under paragraph 25 or 26.

The auditor may also require any person holding or accountable for any document to provide any information or explanation that the auditor reasonably thinks necessary for those purposes.

The application of NAO's seal is to be authenticated by the signature of—

A document purporting to be duly executed under NAO's seal or signed on its behalf—

This paragraph does not extend to Scotland.

NAO and the Comptroller and Auditor General must jointly—

The strategy must—

The strategy (including any revision) must be approved by the Public Accounts Commission.

For this purpose the person who chairs NAO and the Comptroller and Auditor General must jointly submit the strategy (or revision) to the Commission.

Before approving the strategy (or revision) the Commission must review it and may modify it.

In doing this the Commission must have regard to any advice given by the Treasury.

NAO and the Comptroller and Auditor General must each give effect to the strategy.

NAO must provide resources for the Comptroller and Auditor General's functions as required by the Comptroller and Auditor General.

In particular, NAO is responsible for—as required by the Comptroller and Auditor General.

For any financial year the maximum amount of resources that the Comptroller and Auditor General may require for the purposes of sub-paragraph (1) is the maximum amount specified for that year under paragraph 1(2)(b).

Sub-paragraph (1) is also subject to paragraph 3.

The Comptroller and Auditor General may provide services that are not within sub-paragraph (2) only with NAO's approval.

The services within this sub-paragraph are services provided by the Comptroller and Auditor General—

If NAO approves the provision of any services under sub-paragraph (1), it is for NAO to determine the maximum amount of resources that the Comptroller and Auditor General may require for the services for the purposes of paragraph 2(1).

In this Schedule “NAO-approved services” means services provided with NAO's approval under sub-paragraph (1).

NAO may provide advice to the Comptroller and Auditor General about the Comptroller and Auditor General's functions.

The Comptroller and Auditor General must have regard to any advice given.

The Comptroller and Auditor General may prepare a scheme for the delegation of functions of that office to employees of NAO.

The scheme (including any revision) must be approved by the Public Accounts Commission.

If the Commission approves the scheme (or any revision), the Comptroller and Auditor General may delegate functions in accordance with it.

A delegation does not prevent the Comptroller and Auditor General from doing anything personally.

This paragraph applies if the office of Comptroller and Auditor General is vacant.

This paragraph also applies if—

NAO may, with the agreement of the Public Accounts Commission, authorise an employee of NAO to carry out the Comptroller and Auditor General's functions during the vacancy or period of ill health.

The “period of ill health” means the period—

The functions to which sub-paragraph (3) applies include the function of delegating under paragraph 6.

In relation to a vacancy or period of ill health of more than 6 months, functions may not be carried out by virtue of sub-paragraph (3) after the end of the first 6 months.

NAO may charge fees for audits carried out by the Comptroller and Auditor General.

Any fees must be charged in accordance with a scheme prepared by NAO.

The scheme (including any revision) must be approved by the Public Accounts Commission.

The agreement of a Minister of the Crown is required for the charging of a fee if the accounts to be audited are the accounts of a body or other person who acts on behalf of the Crown.

Sub-paragraphs (1) to (4) do not apply in relation to an audit carried out as part of any NAO-approved services.

The Comptroller and Auditor General may charge fees and other amounts in relation to NAO-approved services, but only in accordance with the agreement or other arrangements under which the services are provided.

Fees and other amounts received by the Comptroller and Auditor General must be paid to NAO.

Fees and other amounts received by NAO under this paragraph must be paid into the Consolidated Fund.

NAO and the Comptroller and Auditor General must, as soon as practicable after the end of each financial year, jointly prepare a report on the carrying out during the year of the national audit functions (see paragraph 1(1)).

The person who chairs NAO and the Comptroller and Auditor General must jointly submit the report to the Public Accounts Commission.

The Commission must lay the report before Parliament.

NAO and the Comptroller and Auditor General must jointly prepare a code of practice dealing with the relationship between NAO and the Comptroller and Auditor General.

In doing this, they must (in particular) seek to reflect the principle set out in section 17(1) and (2), subject to any limitations on that principle that are agreed between the Public Accounts Commission, NAO and the Comptroller and Auditor General.

NAO and the Comptroller and Auditor General must jointly review the code regularly and revise it as appropriate.

In preparing or revising the code, they must consult the Treasury.

They must also consider any proposals for revisions of the code made by the Commission from time to time.

The code (including any revision) must be approved by the Commission.

For this purpose, the person who chairs NAO and the Comptroller and Auditor General must jointly submit the code (or revision) to the Commission.

If the Commission approves the code (or revision), the Commission must lay it before Parliament (stating the time from which it takes effect).

NAO and the Comptroller and Auditor General must each comply with the code.

For the purposes of preparing or revising the code, the NAO must agree to the code (including any revision) in accordance with this paragraph.

The agreement must be given at a meeting of NAO.

The agreement may be given only if at least one half of the non-executive members present and voting on the matter vote in favour of giving the agreement.

The requirements of this paragraph are in addition to any other requirements relating to NAO's procedure.

The code must include—

The code may also make provision about—

This paragraph is not exhaustive as regards the matters that may be covered by the code.

Any document or information which a person is required to provide, or may provide, to the Comptroller and Auditor General, may be provided to NAO (either by that person or the Comptroller and Auditor General).

For the purposes of section 3(2) of the Freedom of Information Act 2000 any document or information held by NAO as mentioned in paragraph 2(2)(c) is treated as held by NAO on its own behalf.

The documents and information to be held by NAO as mentioned in paragraph 2(2)(c) include documents and information previously held by the National Audit Office established by section 3 of the National Audit Act 1983.

Before the appointed day the Comptroller and Auditor General must—

The scheme must be approved by the Public Accounts Commission.

On the appointed day the property, rights and liabilities described in the scheme are transferred to NAO.

Sub-paragraph (3) operates in relation to property, rights and liabilities—

In sub-paragraph (1) the references to rights and liabilities include references to rights and liabilities under or in connection with contracts of employment with staff that were appointed under section 3(2) of the National Audit Act 1983.

For any purpose relating to a person who becomes an employee of NAO by virtue of sub-paragraph (3)—

Anything done by, on behalf of or in relation to the Comptroller and Auditor General in relation to anything transferred by sub-paragraph (3) has effect as if done by, on behalf of or in relation to NAO, so far as necessary or appropriate for continuing its effect on and after the appointed day.

Anything (including legal proceedings) which, immediately before the appointed day, is in the process of being done by, on behalf of or in relation to the Comptroller and Auditor General in relation to anything transferred by sub-paragraph (3) may be continued by, on behalf of or in relation to NAO.

So far as necessary or appropriate in consequence of sub-paragraphs (3) to (8), a reference to the Comptroller and Auditor General in any agreement (whether written or not) or instrument or other document is to be treated as a reference to, or as including a reference to, NAO.

Before the appointed day a person's employment under section 3(2) of the National Audit Act 1983 is to be treated for the purposes of paragraph 1(2)(c) and Part 4 of Schedule 2 as if it were employment with NAO.

In this paragraph “the appointed day” means the day appointed for the purposes of this paragraph by an order made by the Treasury by statutory instrument.

For the purposes of the application of Part 5 of the Corporation Tax Act 2009 (loan relationships) in relation to a transfer by virtue of paragraph 1(3), the Comptroller and Auditor General and NAO are to be treated as if, at the time of the transfer, they were members of the same group.

In sub-paragraph (1) the reference to being members of the same group is to be read in accordance with section 335(6) of that Act.

For the purposes of Part 8 of the Corporation Tax Act 2009 (intangible fixed assets) a transfer by virtue of paragraph 1(3) of a chargeable intangible asset of the Comptroller and Auditor General is to be treated as a tax-neutral transfer.

Part 4 of the Taxation (International and Other Provisions) Act 2010 (transfer pricing) does not apply in relation to a transfer to which sub-paragraph (1) applies.

For the purposes of section 882 of the Corporation Tax Act 2009 (application of Part 8 to assets created or acquired on or after 1 April 2002) assets acquired by NAO on a transfer by virtue of paragraph 1(3) are to be treated as if they were acquired from a person who at the time of the acquisition was a related party in relation to NAO.

Expressions used in this paragraph and in Part 8 of the Corporation Tax Act 2009 have the same meaning in this paragraph as they have in that Part.

This paragraph applies to the person who is the Comptroller and Auditor General immediately before the appointed day.

On and after the appointed day the person—

The person's remuneration arrangements under section 13 are to be determined jointly by the Prime Minister and the person who chairs the Committee of Public Accounts before the appointed day (but are not to cover any period before the appointed day).

In this paragraph “the appointed day” means the day appointed for the purposes of this paragraph by an order made by the Treasury by statutory instrument.

This paragraph applies in relation to anything done by or on behalf of the Comptroller and Auditor General under a power that ceases to be exercisable upon the coming into force of section 16 of this Act.

So far as necessary or appropriate for continuing its effect after the coming into force of section 16, the thing is treated as having been done by or on behalf of the Comptroller and Auditor General under that section.

Paragraph 3 of Schedule 3 does not apply in relation to the provision of any services which, at the time that paragraph comes into force, the Comptroller and Auditor General has a contractual duty to provide.

But paragraph 8 of that Schedule applies in relation to any such services as if they were NAO-approved services.

The liabilities covered by section 24 of this Act include liabilities that—

For this purpose section 24(3)(d) covers former members of the staff of the National Audit Office established by section 3 of the National Audit Act 1983.

This paragraph applies until the first rules under paragraph 18 of Schedule 2 are made.

It applies in relation to any matter to be decided by NAO for the purpose of preparing or making those rules or for the purposes of paragraph 10 of Schedule 3.

The matter is to be decided—

But the matter may not be decided unless a majority of the members voting on the matter are non-executive members.

If the votes are tied, the person who chairs NAO is to have the casting vote, whether or not that person has already voted on the matter.

It is for the person who chairs NAO to call a meeting of NAO by giving written notice to the other members of the date, time and venue of the meeting.

The Exchequer and Audit Departments Act 1957 is repealed.

Sub-paragraph (1) does not affect the position of any person by virtue of section 1(3A) of that Act (computation of salary of former Comptroller and Auditor General for purposes of pension).

In section 13 (the Comptroller and Auditor General), before subsection (1) insert—

Sub-paragraph (1) does not affect the position of the person mentioned in paragraph 5(1) of Schedule 4 to this Act so far as section 13 of the 1972 Act applies in relation to that person's service as Comptroller and Auditor General before the appointed day (within the meaning of paragraph 5(4) of that Schedule).

In Schedule 1 (kinds of employment to which the Act applies), in the list of “Other Bodies”—

Sub-paragraph (1) does not affect the position of any person who was a member of the staff of old NAO but who ceased to be a member before the appointed day (within the meaning of paragraph 1(11) of Schedule 4).

Schedule 1 to the House of Commons Disqualification Act 1975 (offices disqualifying for membership) is amended as follows.

In Part 2, insert at the appropriate place— “ The National Audit Office. ”

In Part 3—

Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (offices disqualifying for membership) is amended as follows.

In Part 2, insert at the appropriate place— “ The National Audit Office. ”

In Part 3—

In section 6 of the Parliamentary and other Pensions and Salaries Act 1976, omit subsection (3).

Sub-paragraph (1) does not affect the position of any person by virtue of section 1(3A) of the Exchequer and Audit Departments Act 1957.

In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons subject to general statutory duty), under the heading “Regulatory, audit and inspection”—

Sub-paragraphs (3) and (4) apply in relation to any function that was a function of old NAO by virtue of Part 2 of that Schedule.

Anything done by, on behalf of or in relation to old NAO has effect as if done by, on behalf of or in relation to the relevant person, so far as necessary or appropriate for continuing its effect after the coming into force of sub-paragraph (1).

Anything (including legal proceedings) which, immediately before the coming into force of sub-paragraph (1), is in the process of being done by, on behalf of or in relation to old NAO may be continued by, on behalf of or in relation to the relevant person.

“The relevant person” means—

The amendments made by sub-paragraph (1) cease to have effect when the repeal of the Race Relations Act 1976 by Schedule 27 to the Equality Act 2010 has effect for all purposes.

In the National Audit Act 1983, omit the following provisions—

Sub-paragraph (1) does not affect the position of any person by virtue of paragraph 2(3) or (4) of Schedule 2 to that Act (transfers of staff).

The repeal of section 3(4) of that Act does not affect the position under the Superannuation Act 1972 of any person who was a member of the staff of old NAO but who ceased to be a member before the appointed day (within the meaning of paragraph 1(11) of Schedule 4).

Section 182 of the Finance Act 1989 (disclosure of information) is amended as follows.

In subsection (4)(a)—

In subsection (6), after “Comptroller” insert “ and Auditor General, the Comptroller and Auditor General for Northern Ireland ”.

In subsection (11), omit paragraphs (a) and (b).

In section 123 of the Social Security Administration Act 1992 (unauthorised disclosure of information relating to particular persons), subsection (8) is amended as follows.

After paragraph (a) insert—.

In paragraph (i), omit “the National Audit Office or”.

In paragraph (j)—

After paragraph (j) insert—.

In section 36 (exempt information: prejudice to effective conduct of public affairs), in paragraph (i) of subsection (5), after “the National Audit Office” insert “ or the Comptroller and Auditor General ”.

The reference in that paragraph to old NAO is to be read as a reference to NAO.

In Part 6 of Schedule 1 (public authorities to which Act applies)—

Sub-paragraphs (3) and (4) apply in relation to any function that was a function of old NAO by virtue of Part 6 of that Schedule.

Anything done by, on behalf of or in relation to old NAO has effect as if done by, on behalf of or in relation to the relevant person, so far as necessary or appropriate for continuing its effect after the coming into force of sub-paragraph (1).

Anything (including legal proceedings) which, immediately before the coming into force of sub-paragraph (1), is in the process of being done by, on behalf of or in relation to old NAO may be continued by, on behalf of or in relation to the relevant person.

“The relevant person” means—

In Schedule 1 to the Corporate Manslaughter and Corporate Homicide Act 2007 (list of government departments etc to which Act applies), omit the reference to old NAO.

In relation to any offence alleged to have been committed by old NAO before the coming into force of sub-paragraph (1), proceedings may be brought or continued against NAO as if anything done by, on behalf of or in relation to old NAO had been done by, on behalf of or in relation to NAO.