HC Deb 21 April 2004 vol 420 cc498-500W
Norman Lamb

To ask the Chancellor of the Exchequer (1) which(a) chartered accountants and (b) chartered accountancy firms are banned from carrying out work for the Government; [166384]

(2) which (a) chartered accountancy and (b) chartered accountant firms have had bans lifted since 1997; and what criteria are used to determine whether bans should be (i) imposed and (ii) lifted. [166385]

Ruth Kelly

No chartered accountants or firms of chartered accountants are currently formally banned from carrying out work for the Government. However, following the collapse of Barlow Clowes, the two partners of Deloitte and Touche (the auditors) who were censured by the Joint Disciplinary Scheme Committee of Enquiry (an integral part of the accountancy profession's regulatory regime) voluntarily agreed not to put themselves forward for Government work.

The ban on the employment of Arthur Andersen for Government work was lifted in November 1997 for reasons explained on 14 November 1997, Official Report, column 695.

There are no formal criteria for the imposition or lifting of a ban, and each case is viewed on its merits.

Mr. Cousins

To ask the Chancellor of the Exchequer what the(a) nature and (b) value was of all contracts, consultancies or other services placed with the accountancy firms (i) Deloitte & Touche, (ii) Ernst & Young, (iii) KPMG and (iv) PricewaterhouseCoopers since 2000–01 by the Department and its agencies. [166097]

Ruth Kelly

The following information and tables provide the information required in the form in which the Chancellor's Departments and agencies have been able to compile it, without having to incur disproportionate costs.

HM Treasury1
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte Touche 0 91,473 144,628 207,261
Ernst & Young 0 0 1,410 0
KPMG 41,125 0 262,057 5,006
PriceWaterhouseCoopers 462,251 19,892 203,837 8,119
1 Including DMO.

Office of Government Commerce1
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte & Touche 0 0
Ernst & Young 0 0
KPMG 261,000 85,000
PriceWaterhouseCoopers
1 Including OGC Buying Solutions.

HM Customs & Excise
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte & Touche 876,061 38,748
Ernst & Young 253,153 215,748
KPMG 214,190 1,237,316
PriceWaterhouseCoopers 243,254 111,356

Inland Revenue
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte & Touche 0 2,115 302,273 48,472
Ernst & Young/Cap Gemini1 1,937,237 1,673,971 6,796 70
KPMG 92,500 0 32,261 83,279
PriceWaterhouseCoopers 141,101 190,372 109,680 6,289
1 Combined expenditure with Ernst Young/Cap Gemini-further breakdown only available at disproportionate cost.

Inland Revenue (IR) has access to a range of services provided by the specified companies and their affiliated organisations. The expenditure detailed above for the specified companies was incurred primarily for management services.

The Valuation Office—Executive Agency of the Inland Revenue

During the relevant period, the IP's Valuation Office Agency (VOA) incurred expenditure only with KPMG (for business advice on the 2007 council tax revaluation) as follows:

  • 2002–03: £634,960
  • 2003–04: £1,034,925

The Royal Mint1
Spend (£)
2000–01 2001–02 2002–03 2003–04
Andersen 0 0
Deloitte & Touche 0 0
Ernst & Young 0 0
KPMG 0 0
PriceWaterhouseCoopers 137,000 51,000
1Including Audit Work.
Office for National Statistics
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte & Touche 699 15
Ernst & Young 50 0
KPMG 251,876 191,296
PriceWaterhouseCoopers 2,198 0
National Savings
Spend (£)
2000–01 2001–02 2002–03 2003–04
Deloitte & Touche 570,000 420,000
Ernst & Young 0 0
KPMG 0 0
PriceWaterhouseCoopers 43,000 0

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