The clause provides for the determination of the CAG’s remuneration arrangements. Those provisions have been prepared with a view to the overriding requirement of preserving the independence of the office, in order not to constrain the CAG’s operational decisions. The hon. Gentleman raised a number of questions, which I will come on to in a moment.

On what is contained in the clause, it provides that the remuneration arrangements have to be agreed in advance by the Prime Minister and the Chair of the Committee of Public Accounts; that it can include an automatic uprating during the term of the CAG’s appointment; that it precludes performance-based incentives, in order to preserve the CAG’s operational independence; and that, as of now, it is to be charged on and paid out of the Consolidated Fund, with no need for the resources to be voted on annually by Parliament. The main change to the current arrangements relates to the requirement for the remuneration arrangements to be agreed between the Prime Minister and the person who chairs the Committee of Public Accounts. There will no longer be a direct link to a particular salary or salary range.

The hon. Gentleman asked about linking salary with that of permanent secretaries, but there are a number of them.