Guidance

Public bodies

This page explains the steps being taken to reform public bodies and gives guidance forto departments.

What is a public body?

A public body is a formally established organisation that is, at least in part, publicly funded to deliver a public or government service, though not as a ministerial department. The term refers to a wide range of public sector entities.

Arm’s

Classification lengthof bodies,public orbodies

Government ALBs,undertakes arethree aseparate specifictypes category of centralclassification governmentof public bodiesbodies.

When thatthe areOffice administrativelyfor classifiedNational byStatistics (ONS) economically classifies an organisation as part of the Cabinetpublic Office.sector Thefor threethe typespurposes of ALBproducing are:national Executiveaccounts, Agenciesit (‘EA’),is Non-Departmentalindicatively Publicclassified Bodiesto (‘NDPBs’)one andof Non-Ministerialthree Departmentssub-sectors (‘NMDs’).

Publicbased Bodieson Reformits Programmecharacteristics. 2020These tosub-sectors 2025

are central government, local government or public corporations.

TheIf jointa HMbody Treasuryis andindicatively Cabinetclassified Officeas Publiccentral Bodiesgovernment Reformby Programmethe wasONS, establishedit inmay Januarybe 2021.subject Itsto missiona isseparate foradministrative accountable,classification effectiveby andthe efficientCabinet publicOffice. bodiesThis thatallows arebodies aligned to itsfulfil fivetheir prioritypurpose workstreams:

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  2. Improvedthat gatewayssupports forgovernment establishingaccountability and reviewingefficiency.

    Arm’s-length publicbodies

    Arm’s-length bodies.

  3. Goodbodies governance:(ALB) enhancedare departmentala sponsorshipspecific andcategory boards of central government public bodies.
  4. Data:bodies improvedthat dataare collectionadministratively andclassified by the useCabinet ofOffice. dataThere toare changethree behaviours.
  5. types of ALB:

    • FiscalAn leversexecutive toagency align(EA) publicis bodiesa withclearly governmentdesignated priorities.

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Thereframework areof 3accountability typesto ministers. Examples of arm’s-lengthEAs body:

The Public Bodies Handbook: part one (pdf, 888 kb) provides further information about the classificationtypes of public bodies.bodies, and how they are classified.

The Public Bodies Handbook: part two (pdf, 843 kb) sets out the ministerial approval process for the establishment of new arm’s-lengtharm’s length bodies.

Executive agencies: a guide for departments (pdf, 1,010 kb) describes the characteristics and structures of executive agencies and provides guidance on the processes for their creation, review, merger and abolition.

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The principaljoint characteristicsHM Treasury and structuresCabinet ofOffice NDPBspublic andbodies providesreform guidanceprogramme onwas theestablished processesin forNovember their2020. creation,Its review,mission mergeris andfor abolition.

Reviews

Regularaccountable, reviewseffective areand undertakenefficient topublic ensurebodies that publicare bodiesaligned remainto fitits forfive purpose,priority andworkstreams:

  1. A arenew ablestrategy tofor deliverpublic positivebodies.
  2. Improved outcomesgateways efficientlyfor establishing and effectively.reviewing Reviewspublic shouldbodies.
  3. Good alsogovernance: provideenhanced assurancedepartmental thatsponsorship ALBs and sponsorboards departmentsof arepublic deliveringbodies.
  4. Data: inimproved accordancedata withcollection anyand legalthe anduse mandatoryof requirementsdata setto bychange thebehaviours.
  5. Identifying government.

    greater efficiencies.

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    Reviews

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Theaccountability, newgovernance Publicarrangements, Bodiesefficacy, and efficiency.

Reviews Projectmust aimsassure tothe bepublic, proportionateministers and flexiblethe assponsoring welldepartment’s asprincipal havingaccounting aofficer broadthat focusa withbody’s clearfunction expectationsremains useful and independentnecessary. challenge. New reviewstools projectand guidance wasfor reviews of public bodies were published in April 2022.

ToReviews providemust abe rangeled ofby candidatesan withindependent the expertise needed to lead areviewer. review, the Cabinet Office hasholds set up a Leadlead Reviewerreviewer Pool.pool Departmentsof lookingcandidates tofor appointthis arole. LeadDepartments Reviewerappointing area welcomelead toreviewer getcan incontact touch with the Public Bodies Reform Project Mailbox at any point to request access to the Pool.pool.

A list of public bodies prioritised for review in 2022/23 can be found online.

Public bodies data

The Publicpublic Bodiesbodies Directorydirectory is a yearly data-gathering exercise providing a single, transparent source of top-level administrative and financial data on the non-departmental public bodies, executive agencies and non-ministerial departments classified as Arm’s length bodies by the Cabinet Office.ALBs.

The most recent publication is Public Bodies 2020.2020. Previous editions dating back to 1999 can be found online. PleaseDuring note, during 2010 and 20112011, there was no cross-government collective directorydirectory, as departments were responsible for publishing their own reports.

Sponsorship good practice

To establish effective working relationships for departments and arm’s-length bodies, this code of good practice provides a set of principles and standards.

Departments should appoint a dedicated partner (or sponsor) for each of its arms-lengtharm’s length bodies. It is their responsibility to manage the relationship between the department and the ALB, in line with the principles set out in the code of good practice.practice.

Code of conduct for board members of public bodies

WeBoard expect board members of public bodies tomust work to the highest personal and professional standards. The Cabinet Office’s code of conduct clearly and openly sets out the principles and standards which all non-executive board members of UK public bodies are expected to observe.

Governance

12 Principlesprinciples of governance for all public body NEDsnon-executive directors

Non-executive directors (NEDs) on public bodies should demonstrate the 12 qualities outlined in 12 Principlesprinciples of Governancegovernance for all Publicpublic Bodybody NEDs.

ALB boards: guidance on reviews and appraisals

Principles and resources to support regular arm’s length body board effectiveness reviews and board member appraisals can be accessed on the Arm’sALB length body boards: guidance on reviews and appraisals page.page.

NEDNon-executive director induction events

We support new public body NEDs to understand the unique context of public sector governance and the expectations and opportunities of the role. It is intended to complement the departmental and organisation-specific induction that should be offered to all NEDs by sponsor departments and their ALBs.

We currently run quarterly NED induction events which are aimed at new appointments to public service within the first six months of their appointment. TheseThe areCabinet onlineOffice’s eventspublic whichbodies runteam overcan twoprovide consecutiveadditional afternoonsinformation and cover a wide range of topics specific to the roles of non-executive on ALBthese boards.events.

Rules on lobbying and PR for all public bodies

There is a long-standing principle that public bodies must be politically impartial, and must ensure the proper use of public money at all times. All public bodies must comply with the rules on lobbying, attendance at party conference, advertising, marketing and PR for public bodies.

Published 19 February 2013
Last updated 2724 SeptemberApril 20222023 + show all updates
  1. A new section on the classification process for public bodies has been added to provide greater context and explanation for how public bodies are established and categorised. A link to Public bodies: guide for departments has been removed, as this resource no longer reflects government policy. A link to the list of public bodies prioritised for review in 2022/23 has been added ti improve the transparency of the public bodies review programme.

  2. Information previously relating to rules for non-departmental public bodies has been updated, as it now relates to rules applying to all public bodies.

  3. Page updated to incorporate new guidance on public bodies data, reviews and governance to reflect the new Public Bodies Reform Programme, and to clarify guidance within the public bodies handbook.

  4. Broken links updated. Updated 'Working in partnership:...' section.

  5. Links updated.

  6. Links updated.

  7. Text updated.

  8. Added information on the classification review.

  9. Updated guidance page

  10. Added information on Public Bodies 2015

  11. Added update on progress as at November 2014 and link to Public Bodies 2014.

  12. Added information on the Classification Review.

  13. Added link to Public Bodies Reform Strategy and guidance on triennial reviews.

  14. Sponsorship section added.

  15. Added links to updated guidance under 'Implementation' section

  16. First published.