Highways Agency

Transport written question – answered on 8th May 2014.

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Photo of Richard Burden Richard Burden Shadow Minister (Transport)

To ask the Secretary of State for Transport

(1) whether any increase in remuneration of senior managers in the Highways Agency will have to be agreed by him when the Agency is transformed into a Government-owned company;

(2) whether senior managers in the Highways Agency will be able to enter into legal tax reduction schemes when the Agency is transformed into a government-owned company;

(3) whether the Highways Agency will be subject to the Government's public sector pay policy when it is transformed into a Government-owned company.

Photo of Robert Goodwill Robert Goodwill Parliamentary Under-Secretary (Department for Transport)

The Government intend to transform the Highways Agency into a Government-owned company, as confirmed in the response to consultation published on 30 April. In accordance with TUPE principles, we expect the pay and terms of employment of all staff to remain unchanged once transferred except for the necessary technical amendments to reflect the change to company status.

Staff management arrangements for the company following transition, including pay and reward, are still being worked through within Government. We aim to establish appropriate conditions to allow the company to fulfil its functions efficiently and effectively, while keeping costs down for the taxpayer. This will reflect the Government’s pay policy, as well as support the delivery of a substantially increased investment programme.

There is no intention to encourage or create opportunities for legal tax reduction schemes as part of Highways Agency transformation.

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