The UK has fallen one place to 17th in the annual ‘corruption index’ of 180 countries published by the non-governmental body Transparency International. The Berlin based organisation gave the UK a Corruption Perceptions Index (CPI) of 7.7 (with 0 indicating high levels of corruption and 10 low levels). Before 2008 the UK had never had a CPI score below 8. Transparency International attributed the UK’s falling position to the MPs’ expenses scandal and the weakness of its efforts to prosecute foreign bribery

IIA Chief Executive, Ian Peters, said, “In the aftermath of the economic crisis the UK really should be leading the way on improving standards of governance. It is therefore alarming to find that, instead, this Index indicates the rest of the world sees Britain as a country where those standards are being eroded.

“There is a clear public desire for better governance and greater transparency in the UK. Those improvements can be achieved by creating a stronger culture of risk awareness and internal control. This must be driven from the top down by those responsible for governance within organisations across the public and private sectors. Non-executive directors must question their management teams and gain assurances on the quality of controls in place to manage all risks.

“We must ensure that scarce public finances are managed effectively at all times and avoid the catastrophic consequences of scandal, abuse and perceptions of corruption which poor governance engenders. In the increasingly global community, a perception of the UK as a well governed and transparent region in which to do business is essential to our economic success.”