The Treasury Committee has expressed concerns about the controversial appointment of Angela Knight as chair of the Office of Tax Simplification (OTS) and the circumstances of her appointment, but nonetheless was ‘content to endorse’ it.
In its conclusions and recommendations, the Committee noted that the chancellor appointed Knight without any reference to Parliament. It said this was ‘defective, in that it does not adequately entrench the independence of the OTS’s chair’. It also stated that it was concerned about Knight’s leadership at the British Bankers’ Association (BBA) and her knowledge of tax issues, as well as potential conflicts of interest with her non-executive directorships. However, the Committee concluded that Knight would be surrounded by independent tax experts in her role as chair, that conflicts of interest could be resolved on a case by case basis and that her ‘unhappy experience at the BBA’ should not preclude her from public office.
‘The Committee recommends that Ms Knight, acting on independent advice, should recuse herself from any specific OTS Board consideration of issues which might be held to create a conflict of interests with her other activities, and that OTS Board minutes should record this and be available for public scrutiny,’ the report concluded. ‘The Committee further recommends that … at least three non-executive members be appointed to the OTS to ensure that, with the chairman, there is a majority of non-executives on the Board, in accordance with the principles of the UK corporate governance code.’
The Treasury Committee has expressed concerns about the controversial appointment of Angela Knight as chair of the Office of Tax Simplification (OTS) and the circumstances of her appointment, but nonetheless was ‘content to endorse’ it.
In its conclusions and recommendations, the Committee noted that the chancellor appointed Knight without any reference to Parliament. It said this was ‘defective, in that it does not adequately entrench the independence of the OTS’s chair’. It also stated that it was concerned about Knight’s leadership at the British Bankers’ Association (BBA) and her knowledge of tax issues, as well as potential conflicts of interest with her non-executive directorships. However, the Committee concluded that Knight would be surrounded by independent tax experts in her role as chair, that conflicts of interest could be resolved on a case by case basis and that her ‘unhappy experience at the BBA’ should not preclude her from public office.
‘The Committee recommends that Ms Knight, acting on independent advice, should recuse herself from any specific OTS Board consideration of issues which might be held to create a conflict of interests with her other activities, and that OTS Board minutes should record this and be available for public scrutiny,’ the report concluded. ‘The Committee further recommends that … at least three non-executive members be appointed to the OTS to ensure that, with the chairman, there is a majority of non-executives on the Board, in accordance with the principles of the UK corporate governance code.’
