Governance

UKGI performs the shareholder role on behalf of BEIS in relation to HMLR. HMLR plays a key role in the UK’s economic stability, security and growth. Its registers and the guarantees afforded by them underpin £7 trillion in property assets across England and Wales, with £1-1.5 trillion in lending secured against it. The Land Register, a piece of Critical National Infrastructure, contains more than 26 million titles, providing financial and economic security across the UK. 

UKGI provides strategic oversight of HMLR’s corporate governance and corporate performance, working closely with and reporting directly to BEIS senior officials and BEIS Ministers. 

For example, last year UKGI was responsible for advising on the appointment of non-executive members to HMLR’s Board. In practical terms, this involved leading the recruitment campaign for new non-executive Board members, engaging closely with both HMLR and BEIS throughout the process and advising BEIS Ministers for a decision. This led to the appointment of two new independent non-executive directors who strengthen the Board in terms of experience and capabilities and providing support for management to execute HMLR’s business strategy. 

UK Government Investments acts as shareholder on behalf of HMT Ministers in relation to Government’s 100% shareholdings in The Royal Mint. The Royal Mint’s primary purpose is to manufacture and distribute coins for the UK, as well as to supply blanks and official medals. Since 2010, They have operated on a fully commercial basis providing goods and services to HMT via the UK Coin contract.

We discharge our role primarily through membership of the Board and certain of its committees, working with HMT and The Royal Mint to better align the governance structure with the government’s objectives for the Mint as well as further developing the medium-term strategy to remain a profitable business despite the long-term decline in cash usage.

With regards to COVID-19, the UKGI team supported The Royal Mint in its options to keep the business open and provided steers on Government support packages that are available. We are pleased to note that The Royal Mint used its engineering expertise to create and manufacture medical visors to help protect frontline care workers in the NHS.

UKGI manages BEIS’s 100% shareholding in the NNL, including providing a UKGI Shareholder NED to represent BEIS as shareholder on the NNL Board. Shareholder priorities are set out at least annually in a letter to the NNL Chair, as well as being reflected in NNL’s business plan and Key Performance Indicators. We also monitor performance against business plan and financial performance closely, and provide formal reporting on NNL’s performance to BEIS. 

We are able to flex our level of engagement if needed, in order to deliver shareholder intervention which is proportionate to the circumstance. For example, during the early stages of the pandemic, owing to the increased uncertainty around impact on the business and operations, engagement between UKGI and NNL increased significantly, with UKGI working with BEIS to put in place contingency arrangements to allow NNL to access additional funding if required.  

Environmental Sustainability is a key focus for NNL and UKGI is involved in active discussions, alongside NNL’s executive team, on developing NNL’s enhanced environmental strategy and approach. NNL have also accepted UKGI’s invitation to participate in a cross-Whitehall group to share best practice with other UKGI assets. 

We work with NNL to continually seek improvement and evolution of NNL’s governance to reflect best practice, and delivered a full refresh of NNL’s constitutional and governance documents. These include updated articles of association and board terms of reference, as well as a new ‘Framework Document’ setting out the roles and accountabilities of NNL, including how NNL meets the standards outlined in Managing Public Money.