Question proposed, That the clause stand part of the Bill.

Clause 11 is one of a clutch of clauses that update the provisions surrounding the FSCS. It arises from the reclassification by the Office for National Statistics of the FSCS as “a central government body”, and as such the FSCS must be consolidated within Treasury group accounts. The FSCS current governance framework, given that it applies to a central body, does not give the Treasury sufficient direct control or scrutiny of the activities of the FSCS, including access to its accounts and the management information necessary to certify for audit purposes, for example, that its activities are up to the standard required under “Managing Public Money” or provide the financial information necessary to be consolidated in the Treasury’s accounts, which are then reported to Parliament.

The clause will provide the Treasury with the power to require specified information from the scheme manager of the FSCS. That will include forecasts for the parliamentary estimates and financial accounts to consolidate the FSCS account into the Treasury group account. The Treasury will not have the power to require the scheme manager to provide other information, and the day-to-day independence of the FSCS will be protected, as we noted in the previous debate.

The clause will ensure that the Treasury has access to the information necessary for the Treasury’s principal accounting officer to be able to assure himself or herself of the highest standards of regularity and propriety for the FSCS and to obtain the financial information that it is necessary to report to Parliament as a result of the reclassification.

We have here a short Clause; the Minister coined the term “minimalist” to describe it. As he has said, it will give the Treasury the power to require the FSCS to provide information, so that the whole of Government accounts may be prepared. It will also give the Treasury the power to demand information within a specified period.

It is vital that the FSCS provides accurate information on time and on the basis the Minister described. However, I am unclear as to what timetable he has in mind for providing such information. Will he give us some details about that? The Minister stressed that the Treasury does not intend to undermine in any way the independence of the scheme or to interfere with its day-to-day running and responsibilities, but it is important to ensure that safeguards are in place in case the scheme does not run correctly. Will any sanction be available should the FSCS not provide sufficient information within the time scales agreed or set out?

Will the Minister describe what regular meetings are held between the Treasury and the senior management of the scheme as part of the regular oversight or supervision of the FSCS? Who is involved in them? How often do they take place? How do they operate? Will regular meetings be held with the FSCS, the Financial Conduct Authority and the Prudential Regulation Authority as part of the ongoing oversight and dialogue? It will be helpful for us to understand that in the context of ensuring that the scheme runs appropriately and that there is oversight and accountability.

The Clause refers to information that can be reasonably required

“in connection with the duties of the Treasury under the Government Resources and Accounts Act 2000”,

which limits the type of information that may be required. That also has implications for the timing involved in providing the required information.

The time requirements relate to the type of information required. For example, financial accounts are required annually. The scheme manager and the Treasury will be required to agree on a consolidation timetable each year, whereby the scheme manager will provide the financial information in an agreed format for consolidation into the Treasury’s accounts. As a minimum, it should include accounting data in a usable format on a quarterly basis and a complete set of account information at the end of March.

It is envisaged that the scheme manager will provide the Treasury with forecast information in an agreed format twice a year, so that parliamentary estimates may be made and presented to the House. The information for that purpose will be required by the end of January for the main estimate and by the end of December for the supplementary estimate. Returns from the FSCS will consist of a summary of its forecast resource and capital expenditure, aligned to the Government’s financial year.

The final piece of information that we anticipate requiring using this power is monthly management information to support the Treasury principal accounting officer’s assurance over the consolidation of the FSCS accounts into the Treasury group’s consolidated account. The accounting officer of the FSCS will be accountable to the Treasury’s accounting officer. They will report in that way and also directly to Parliament. As for an available sanction, across Government, accounting officers obey the directions of other accounting officers when there are subsidiaries, but in extremis I am advised that a court order could be imposed on the accounting officer of the scheme to comply. Much scarier than the order of a court is the wrath of the Public Accounts Committee should that not happen.

I want to follow up the question that my hon. Friend the Member for Kilmarnock and Loudoun asked about the whole of Government accounts. It is an important tool, not just for the PAC but for all those who are interested in Government expenditure. It is not clear from his answer how quickly the information that could help the whole of Government accounts will be provided by the organisation.

The requirement is that it is done in a timely way for the presentation of the accounts to the National Audit Office and the PAC. The reason for specifying the Government Resources and Accounts Act 2000 is that the powers can then comply with the Treasury’s requirements in that respect. There are regular meetings between the Treasury and the FSCS, and senior officials meet the FSCS chief executive approximately every two months. Treasury finance officials also meet the FSCS finance director, and the chief executive, Mark Neale, is someone whom I have met twice personally in the past few months.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.