Lack of action on Hammond ‘shows sleaze rules are weak’
THE “toothlessness” of Whitehall’s lobbying watchdog has been laid bare by ministers’ failure to act on its concerns about a rule breach by Lord Hammond, the former chancellor, the shadow chancellor has claimed.
Almost three months on from the Advisory Committee on Business Appointments (Acoba), formally warning ministers that Lord Hammond appeared to have broken rules governing former ministers’ jobs, The Sunday Telegraph understands that Lord Pickles, the body’s chairman, has yet to receive a response to his letter and that the ex- chancellor has faced no action.
In a letter dated Aug 31, Lord Pickles set out that it was not “in keeping with the letter or spirit of the government’s rules for the former chancellor to contact HMT [ Her Maj e sty ’s Treasury] on behalf of a bank which pays for his advice”.
He told the Chancellor of the Duchy of Lancaster, then Michael Gove, that it was, “now a matter for you to decide what appropriate action to take”. But no action appears to have been taken by Mr Gove or his successor, Steve Barclay.
Last night Angela Rayner, Labour’s deputy leader and the shadow chancellor of the Duchy of Lancaster, said: “This case also shows how broken and toothless the entire Acoba system is, with the committee unable to enforce its rulings or act when the rules are broken.”
Lord Hammond insists that no rules were broken because OakNorth, the bank on whose behalf he approached Treasury officials last year, was offering a product “free of charge”.
However, The Sunday Telegraph understands that Treasury officials do not recall OakNorth making clear that the product would be either free, or subject to a charge.
Several Whitehall reviews have concluded that the system of policing ex ministers’ jobs is too weak, with no formal sanctions for former government frontbenchers who break the rules. Lord Pickles’ letter to Mr Gove was an unusual step and reflected concern at Acoba that breaches of the rules must be seen to have consequences.
The Cabinet Office is working up proposals for a series of “improvements” to the system governing the activities of ex ministers and civil servants. The plans include clawing back a proportion of the £16,000 severance pay given to cabinet ministers when they leave office.