FORMER Chancellor Philip Hammond has been found to have acted against ministerial rules when he lobbied the Treasury on behalf of a bank.
Mr Hammond was being investigated after he approached a senior treasury civil servant last year on behalf of OakNorth International Bank, for which he has been an adviser since January 2020.
The peer contacted Charles Roxburgh, the Treasury’s second most senior civil servant, highlighting an offer from the bank to give the government free access to its ‘Covid stress-testing toolkit’ for assessing corporate borrowers.
He also asked Mr Roxburgh to “pass it on to anyone else who might be appropriate”.
A finding by the Advisory Committee on Business Appointments (ACOBA), published today, states the former Chancellor was “unwise" to make such contact and it was “not consistent with the intention of the rules”.
In a letter, ACOBA chairman Lord Eric Pickles told Mr Hammond: “I have no doubt you sincerely believed contact with your former department in this way was appropriate and within the Rules. Unfortunately, even though the initial contact was made without your involvement, it was an unwise step to contact senior officials at the Treasury on OakNorth's behalf. “
He later said: “The Committee considers the use of your contacts in government in this way was not consistent with the intention of the Rules and was not acceptable.
“The material consideration is the privileged access you obtained for OakNorth not the commercial value of the proposition.”
Previously ACOBA told Mr Hammond that for two years after quitting his cabinet role he should not make use of his “government and/or ministerial contacts to influence policy or secure business on behalf of OakNorth”.
The ministerial code states former ministers “must abide by the advice of the committee”.
Labour previously accused Mr Hammond of breaking the ministerial code, and urged the Cabinet Office to investigate.
Michael Gove, Chancellor of the Duchy of Lancaster, has been told of ACOBA’s findings, in a letter from Lord Pickles.
The peer told Mr Gove in a letter: “I consider there is a reasonable concern that direct engagement with the Second Permanent Secretary at HMT was only made available to OakNorth Bank as a direct result of his time as Chancellor.
“I do not consider it was in keeping with the letter or the spirit of the government’s Rules for the former Chancellor to contact HMT on behalf of a bank which pays for his advice.”
He concluded: “It is the Committee’s policy to act transparently, including making public any failure to follow the Rules, or the Committee’s advice, that it is made aware of. It is now a matter for you to decide what appropriate action to take.”
The SNP's Pete Wishart said the finding was another example of Tory "cronyism".
He said: "Cronyism oozes from every pore of this broken Tory government.
"This ruling highlights the speed-dial government being run by the Tories – where former Tory MPs have ease of access to Whitehall departments and senior figures, which is simply not afforded to the rest of us.
"Once again, the Tories think it's one rule for them and another for everyone else.
"This is not an isolated example – time and time again we have witnessed how Tory figures, party donors and friends have been granted access and awarded lucrative contracts with ease."
A Cabinet Office spokesman said: "The Advisory Committee has drawn the matter to the Government's attention. We will consider the exchanges of letters published and respond to their letter in due course."
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