Background

Conflicts of interest arise when an individual’s ability to apply judgement or act in a role is, or could appear to be, impaired or influenced by an outside interest. Conflicts of interest are a common and unavoidable part of the management of any organisation, including government departments and public bodies. However, when they do arise it is important to manage them effectively.

Ministers, special advisors, non-executive directors and officials are all responsible for disclosing any potential conflicts of interest they may have. Public bodies are responsible for identifying and managing any conflicts that may arise from these, so that they can meet the high standards expected by Parliament and the public for public expenditure and the administration of government. Cabinet Office supports government to meet its responsibilities in this area and produces the central government guidance on managing outside interests.

Scope

This latest report in our series on managing propriety in the public sector will consider:

  • cross government landscape – is there an effective cross government governance framework to support public bodies to manage conflicts of interest?
  • disclosures – do central government bodies have effective governance and processes in place to identify and record interests and potential conflicts?
  • management – do central government bodies have effective governance and processes in place to manage actual or potentially perceived conflicts of interest effectively once identified?

NAO Team

Director: Joshua Reddaway
Audit Manager: Katie Taylor