Commercial Affairs Definition:Commercial Affairs refers to the range of commercial matters that fall within the responsibilities of the Government of the United Kingdom.
The term has become increasingly associated with the Government’s ability to make decisions, with the public sector’s role expanding with the introduction of the EU referendum in June 2016.
Commercial Affairs Definition and Limitations:The Government has wide discretion to determine the definition and scope of commercial affairs.
Its decision-making authority over commercial matters can include a wide range of considerations including:the nature of the commercial interests of the company concerned,the level of competition in the market,the potential impact on consumers,the commercial interests and reputation of a company,the financial viability of the business and the availability of capital.
In some instances, the Government has also taken steps to ensure that it does not have a monopoly on the provision of services, for example by creating a regulatory framework for the sector, as it did in the case of social care.
Commercial Matters:Commercial affairs are matters that the Government chooses to undertake.
This includes:The commercial activities of the public, organisations, individuals and companies, the commercial activity of businesses and individuals, the activities of government bodies, and the commercial activities carried out by charities, trade unions, and other public bodies.
The scope of the activity and the scope of control of that activity can vary according to the particular circumstances of the particular business, including:a business’s size and impact,the nature and quality of its business and its market value,the extent of its customer base and its capacity to meet the needs of the community,the size and potential impact of its activities on local economies and communities,the degree of public involvement and the willingness of local communities to engage with it.
In addition, the scope and nature of public sector involvement in commercial affairs can vary depending on the type of organisation involved.
The Government is therefore left with a range of options for managing commercial affairs, including setting up a statutory framework and making a range (including specific regulatory provisions) of specific commercial matters available for the Government to decide.
For example, it is the responsibility of the Minister of State for Business, Innovation and Skills to decide whether or not a company has been designated as a commercial affairs provider, and to ensure it is able to operate on the terms and conditions of the designation.
In practice, commercial affairs are managed by a range or portfolio of public bodies, including the Department of Business, Enterprise and Skills, the Department for Business Innovation and Entrepreneurship, the Crown Estate and the Royal Society for the Protection of Birds.
In many instances, a range and portfolio of stakeholders have contributed to the decision to create a commercial activity, with decisions on the commercial matters and the provision and operation of the service also being made by a number of other bodies.
These include the Cabinet Office, the Secretary of State, the Home Affairs Committee, the Cabinet Committee on Legal and Constitutional Affairs, the Parliamentary Library and the Government Procurement Information Services (GPIS).
The Department for Transport is responsible for commercial services for the transport sector.
It is the Government responsible for the provision, maintenance and operation, and oversight of all services within the public transport sector and all routes within the Transport network.
The Department of Transport provides an overall range of services to the public including transport, transport network, bus and coach services, rail and tram services, air travel, the use of public facilities, accommodation and other facilities and facilities for the carrying out of the services.
It is the Secretary to whom these services should be delivered.
It also provides a statutory instrument, the Transport (Consolidation) Act 1998 (TCA), to make sure that those services are delivered on a uniform basis and in accordance with the rules and regulations.
Government Procurements:The Department and other bodies that supply goods and services to government can be called commercial enterprises.
However, in practice, they are not.
They operate outside the scope, and sometimes the responsibilities, of the Department, and therefore are not considered to be part of the wider commercial activities that the department undertakes.
Government contracts and other business agreements are also known as commercial enterprises and include contracts for the supply of goods and/or services for government purposes and other commercial arrangements.
Government procurement is carried out for the benefit of the national public, through contracts for goods and the supply and maintenance of public transport infrastructure, and for the commercial purposes of the private sector, including for commercial matters.
The Public Accounts and the Spending Review are designed to allow the public to see how the Government is spending money and is in the public interest.
They provide the basis for the government’s spending decisions, and they provide the information needed to make these decisions.
Government departments are also called commercial organisations.
This is the case in relation to all departments that are responsible for performing government services.
The government departments that deal with commercial matters are called commercial services providers.