Chancellor Rachel Reeves and Treasury permanent secretary James Bowler have been hit with a litany of questions from a former minister at the department following the appointment of a Labour Party donor to a top director job.
Laura Trott, who was chief secretary to the Treasury until Labour's landslide victory in last month's general election, has written to Reeves and Bowler demanding answers about the hiring of Ian Corfield as director of investment.
Among the Sevenoaks and Swanley MP's questions are whether Corfield's financial gifts to the Labour Party were detailed to appointments watchdog the Civil Service Commission, which approved the non-competitive recruitment process.
Trott, who was rebuked by the UK's stats watchdog over a misleading claims about tax cuts earlier this year, also asks whether the Treasury conducted any conflict-of-interest tests in relation to Corfield's appointment before it was confirmed.
Corfield, who has donated £20,000 to the party over the past decade – including £5,000 to Reeves last year – is the former chief commercial officer of credit card company NewDay. He had worked as a senior business adviser to Labour for six months before his appointment to the direcor role last month. No details of Corfield's salary have been published, but for a director-level role at the Treasury, he could expect to earn at least £95,000 a year and potentially considerably more.
Corfield was appointed to his senior civil service role by the "exception" process, meaning the job did not need to be openly recruited for.
Last week, the CSC said it had approved his temporary appointment "recognising the need for the civil service to quickly bring in relevant skills for a fixed term". "All appointments by exception are reminded of their responsibilities under the civil service code to act with impartiality, objectivity, integrity and honesty," it said.
Yesterday, the Politico website reported that two people "familiar with the appointment process" had told it the CSC was not made aware of Corfield's history as a Labour Party donor.
In a blog published earlier this week, CSC interim chief executive Kate Owen said decisions to approve an appointment by exception involve consideration of a departmental business case explaining why the role cannot be done by existing staff or filled through open competition.
She added: "The department – as the employer – is responsible for carrying out background checks on individuals who may be appointed by exception. The department is also responsible for addressing any potential propriety matters."
The Daily Express said yesterday that it had seen Trott's letter to Reeves and Bowler and listed the questions she posed. They are:
- On what day was a request made by ministers to appoint Mr Corfield, and on what date did he commence employment in HM Treasury?
- Was the fact of Mr Corfield’s donation to the chancellor brought to the specific attention of the CSC at the time when an application for an exceptional appointment was initially submitted? Or did the commission subsequently become aware of the donation?
- Was the chancellor herself, as a recipient of the donation, recused from decisions involving the appointment of Mr Corfield?
- Was Mr Corfield’s donation to the chancellor recorded in writing with you, as permanent secretary, before any suggestion was first made to appoint him to a civil service position? When was this interest recorded with you?
- Was advice sought from the Cabinet Office or the prime minister’s independent adviser on ministerial interests in relation to the conflict, or perceived conflict, between the donation to the chancellor and any decision by your department to appoint Mr Corfield to a role?
- Did your department test the potential conflict relating to Mr Corfield at the point of his recruitment, in line with government guidance on managing conflicts of interest, and what steps will be taken to uphold the impartiality of the civil service?
- Will Mr Corfield have a role recruiting and managing other civil servants?
- Have any other Labour donors been appointed to civil service positions in your department?
- Have there been any minuted meetings between Rachel Reeves and Mr Corfield either before or after this appointment?
The government's stock response to questions surrounding Corfield's appointment is: "We do not comment on individual staffing appointments. Any appointments are made in line with the civil service rules on recruitment.”