May’s Darling Buds - or who's in and who to watch!

Updated (in light of moving events) 18 July 2016.

I had a very interesting day at the end of last week. 

After spending the majority of the week at Cintra’s head office in Newcastle, I travelled back to London with Angela Brown from the Office of Tax Simplification (OTS).  Whilst the conversation, inevitably, turned to the joys of UK payroll processing and the OTS’ latest work on simplification, the main topic of conversation was who was in or who was out of Government.  We were like teenagers on our respective telephones.  So, I thought I would try and provide some clarity and confirmation of the people that UK HR, payroll and pension professionals should be watching. 

Our new Prime Minister Theresa May has been putting her own mark on the Cabinet that she wants and this is in place.  However, it is sometimes the people that are below Ministerial level that will be the ones to watch for:

HM Treasury (HMT) 

Of course, the headline news is that the familiar face of George Osborne has been replaced with Philip Hammond as Chancellor of the Exchequer (moving from the post of Foreign Secretary).  His main role is the control of fiscal and monetary policy and he will be the familiar face presenting the Autumn Statement and the Budget. 

However, it is probably the Financial Secretary to the Treasury (FST) Jane Ellison that will affect payroll in day-to-day affairs (moving from the Department of Health).  This is a role previously held by David Gauke.  As FST, Ms Ellison has direct oversight the UK tax system, including personal taxation.  She is also the department minister for Her Majesty’s Revenue and Customs (HMRC). 

I must admit that I was not familiar with Ms Ellison, therefore looked at her own Website and also ‘TheyWorkForYou’ to see her voting record.  Both of these helped get an understanding of the lady.

Department for Work and Pensions (DWP) 

Damian Green is the overall head of the DWP, which looks after administration of the State Pension and the working age benefits system.  He assumes the role from Stephen Crabb, who only held the role from 19 March to 14 July 2016. 

However, I wonder if it is really Richard Harrington that we should be looking to, as he is the new Pensions Minister.  In fact, the role has been retitled Parliamentary Under-Secretary for Pensions.  This is junior to both a Secretary of State and a Minister of State.  Does this mean that the role is demoted?

The previous incumbent of the role of Pensions Minister, Baroness Roz Altmann, resigned saying: 

‘Unfortunately over the past year, short-term political considerations, exacerbated by the EU referendum, have inhibited good policymaking. As the country heads into uncharted waters, I would urge you and your new team to enable my successor to address some of the major policy reforms that are needed to improve pensions for the future’ 

Amongst these ‘reforms’, the Baroness said that Auto-Enrolment needs to continue, the pensions tax relief system should have a flat-rate tax relief and the new State Pension should be communicated better, particularly in light of changes to the State Pension age. 

Undoubtedly, with these thoughts in mind, Mr Harrington has a challenge ahead as he moves from his previous role as Parliamentary Under-Secretary of State at the Department of Communities and Local Government.

We should also be looking for anything that Lord David Freud says.  He is the Minister in charge of the roll-out of the Universal Credit who once summed up Real Time Information with the remark ‘you do the payroll then you press one extra button to send it over to HMRC’!

Department for Business, Energy and Industrial Strategy (BEIS) 

This is a new department – well, created as a result of the merger of the Department for Business Innovation and Skills (BIS) and the Department of Energy and Climate (DEC).  This is led by Greg Clark, previously Secretary of State for Communities and Local Government. 

BIS had a wide remit, supported by various bodies that impact payroll and HR.  For example, the Advisory, Conciliation and Arbitration Service (ACAS), Student Loans Company (SLC), Low Pay Commission (LPC) and UK Commission for Employment and Skills (UKCES) all worked with BIS. 

Announcements from BEIS are certainly worth looking out for.

Devolved Offices 

As well as announcements from the individual Governments in the devolved administrations, keep an eye on the following Secretaries of State: 

• Northern Ireland - James Brokenshire (replacing Theresa Villiers)
• Scotland - David Mundell (remains in post)
• Wales - Alun Cairns (remains in post)

As well as announcements from the above, David Gauke, Chief Secretary to the Treasury, is responsible for HMT funding to the devolved administrations.  Another one to watch.

‘Brexit Office’ 

A new and important department is ‘The Department for Exiting the European Union’ and has been established following the June 2016 Referendum vote.  This is led by Secretary of State David Davis.  The new department will be an interesting one to follow and Mr Davis has a range of responsibilities to ‘ensure a smooth process of exit on the best possible terms’. 

He is supported by a number of other Ministers, however, I feel that they will not be able to do this alone and the Brexit Office will need to be supported by the Foreign Secretary Boris Johnson.

-----------------------------------------------------

The above represent the main movers and shakers as I see it.  However, UK professionals really need to have their eyes on every department and every announcement!