The role and powers of governors

The legal basis of the powers and functions councils of governors hold is set out in Schedule 7 of the 2006 NHS Act (as amended). 

We have some idea of what might happen to the functions currently undertaken by councils when the legislation passes. This table sets out our best guess at present (February 2026):

Council of Governors powers and functions	Likely scenario post 1 April 2027
Holding the board to account for its performance, via the non-executive directors (NEDs)	This role, which has historically also been part of the regulatory/oversight roles of NHSE and previously Monitor and the Trust Development Authority (TDA), will be moved into DHSC. CQC will continue to have a quality regulation role.
Represent the interests of FT members and the wider public	To be removed – but the government expects FTs to introduce ’more dynamic arrangements to take account of patient, staff and stakeholder insight’.
Appointment and removal of NEDs including the Chair	Moves to DHSC
Decide the remuneration, allowances and terms and conditions of all NEDs	Moves to DHSC
Approving significant transactions as defined in the FT constitution	To be removed
Approving organisation-led mergers, acquisitions, dissolutions	To be subsumed into DHSC's oversight role, noting that NHSE, Monitor and TDA historically reviewed transactions
Approval of appointment of the CEO	To be removed
Appointment and removal of the external auditor	Change in practice to that undertaken for NHS trusts and ICBs
Receipt of the FT’s annual report and accounts, and the auditor’s report on them	Moves to DHSC
Amendments to the constitution	Moves to DHSC
Approval of any proposal to increase the trust’s income from non-NHS work by more than 5% in a financial year	Moves to DHSC
Expressing a view on board’s forward plans, in advance of submission to NHS England	To be removed – review of plans moves to DHSC as part of its oversight role

It is likely that some of the functions proposed to move to DHSC will in practice be undertaken by the NHS regional teams, which under current proposals will continue to exist as part of DHSC when NHSE is abolished.

The governors and staff we spoke to raised questions about whether and if so, how the new Advanced Foundation Trust (AFT) status impacts on FTs and their councils of governors. The answer is that they are unrelated. 

All FTs will cease to have councils of governors if the legislation is passed as proposed, whether they have been awarded AFT status or not. Being an AFT does not change the way an organisation is governed and run – it only changes the approach of the regulator and the government to that organisation (with their ‘advanced’ status affording more hands-off oversight and less direction from the centre) and AFTs may be given more financial freedoms. 

Both NHS trusts and FTs can gain AFT status. Councils of governors are not required to approve an application to become an AFT because gaining AFT status would not usually be classed as a significant transaction. Nonetheless in an FTs' routine engagement with the council about annual planning, governors might expect to be informed and engaged in any plans to apply for AFT status.