This Annual Report of the House of Lords covers the financial year 1 April 2002 to 31 March 2003. A Review of the Year is followed by a detailed report describing how the administration supported the work of the House as the UK's second chamber of Parliament.

The theme of this year's Report is change. There were major changes in the procedures and working practices of the House; in its administration and internal management; and in the way in which the House accounts for the expenditure voted to it. The House also agreed a new structure of "domestic" committees, responsible for overseeing expenditure, accommodation, conditions of service for staff and the upkeep of the Palace of Westminster. In addition, an Audit Committee was established and its first report is included in this Report. Deliberations on House of Lords Reform continued in both Houses for much of the year and are described in the report.

The House was busy throughout the reporting year, and its main work of scrutinising Government legislation and examining issues in select committees is described in the Review of the Year.

As the Report went to press, the Government announced its intention to reform the office of Lord Chancellor; to invite the House to choose its own Speaker; and to create a Supreme Court in place of the appellate jurisdiction of the House. These far-reaching proposals, and the consultations on them which are now taking place, will be fully reported in next year's Annual Report.

Resource Accounts for the House ­ incorporating all the financial transactions of the House in 2002-03 ­ will be published separately later in the current financial year, once completed and audited by the National Audit Office. This Report includes (on page 33 and in Appendix E, page 69) a breakdown of expenditure by the House in 2002-03.

The House of Lords' Business Plan for the three year period 2004-05 to 2006-07 is published separately.

The Annual Report was approved by the House Committee.

MICHAEL DAVIES

Clerk of the Parliaments and Accounting Officer July 2003

The House Committee: from left to right, Baroness Williams of Crosby, Black Rod - Sir Michael Willcocks (in attendance), Lord Hunt of Wirral, Clerk of the Parliaments - Sir Michael Davies (in attendance), Lord Lloyd of Berwick, Lord Brabazon of Tara (Chairman), Lord Craig of Radley, Lord Williams of Mostyn, Lord Rodgers of Quarry Bank, Lord Strathclyde, Christopher Johnson (Clerk), Lord Barnett.
Absent: Lord Burlison and Lord Renfrew of Kaimsthorn.




The Management Board: from left to right, Paul Hayter, Rhodri Walters, Kate Ball (Secretary), Sir Michael Davies (Chairman), Edward Ollard, Michael Pownall, Sir Michael Willcocks.