UK Inquiry Tracker

Cost of maintaining the FCDO’s overseas estate

Public Accounts Committee Open Inquiry

Opened: 6 May 2025 Parliament page

The Foreign, Commonwealth and Development Office’s (FCDO) overseas estate encompasses over 6,000 properties spread over almost 180 countries and valued at around £2.5 billion. The varied locations and uses of properties in this estate each present their own unique challenges which range from supply issues to security concerns. The overseas … Read more The Foreign, Commonwealth and Development Office’s (FCDO) overseas estate encompasses over 6,000 properties spread over almost 180 countries and valued at around £2.5 billion. The varied locations and uses of properties in this estate each present their own unique challenges which range from supply issues to security concerns. The overseas estate also hosts the operations of at least 30 other UK government departments and bodies that require a presence overseas. In 2023, the FCDO estimated the cost of maintenance for this estate was at least £250 million. The FCDO’s estate has grown considerably since the Committee last reported on this issue in 2010, when it warned that the Department had a poor understanding of its overseas estate and the information it had on these properties was incomplete, out-of-date and inaccurate. More recently, the Committee examined the Government’s management of its estate in the UK, and found worrying signs that there was a ‘lack of ambition’ to reduce significant maintenance costs. The National Audit Office (NAO) recently examined how the FCDO manages and maintains its estate. Since 2010 the FCDO has been required to fund its estates capital programme through asset sales. The sale of assets in Bangkok and the partial sale of assets in Tokyo provided the Department with around £1.2 billion which has contributed to the recent completion of projects in Washington DC, Paris and Ottawa. Based on the NAO’s findings, the Committee will hear evidence from senior FCDO representatives, with likely topics including: Examining the FCDO’s strategy for meeting current and future maintenance demands of its overseas estate; Exploring the long-term viability of the current funding model used for overseas estate capital projects and; Questioning if the FCDO is managing its assets in the most cost-effective manner, or if more can be done to ensure it secures the best value for taxpayer's funds. If you have evidence on these issues please submit it here by 23:59 on Thursday 26 June 2025. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues . Show less

9 Recommendations

17 Conclusions

1 Report

1 Oral session

4 Letters

1 Event

Activity timeline 8 events

16 Mar
2026

Correspondence

Letter to the Permanent Secretary of the Foreign, Commonwealth and Development Office relating to Treasury Minute response: Cost of maintai…

26 Jan
2026

Correspondence

Letter from the Permanent Under-Secretary at the Foreign, Commonwealth, and Development Office relating to the Committee’s Fifty-third Repo…

19 Jan
2026

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Fifth-third report from Session 2024-26

12 Nov
2025

Report published

53rd Report - Cost of maintaining the FCDO’s overseas estate

4 Sep
2025

Correspondence

Letter to the Permanent Under-Secretaries of the Foreign, Commonwealth and Development Office relating to the FCDO’s management of Official…

4 Sep
2025

Correspondence

Letter from the Second Permanent Under-Secretary of State of the Foreign, Commonwealth and Development Office relating to the oral evidence…

10 Jul
2025

Oral evidence

Oral evidence session

10 Jul
2025

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Committee event

Oral evidence sessions 1 session

10 Jul 2025

View on parliament.uk

Dr Ian Collard OBE · Foreign Commonwealth & Development Office Eddie Hannah OBE · Foreign Commonwealth & Development Office Nick Dyer · Foreign Commonwealth & Development Office Sir Oliver Robbins KCMG CB · Foreign Commonwealth & Development Office

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
53rd Report - Cost of maintaining the FCDO’s overseas estate	HC 884	12 Nov 2025	26	Responded

Recommendations & Conclusions

14 results

3 Conclusion Accepted

53rd Report - Cost of maintaining …

Implement FCDO's improved estate governance model, establishing a new board and publishing a maintenance strategy.

FCDO’s central estate function does not have adequate oversight of estate activities, both at overseas posts and across its project portfolio. Eighty-four percent of overseas posts have responsibility for maintaining their own estate, either through in-house teams or local contractors, … Read more

Government Response

The government has established a new Estates Committee in October 2025 to strategically review estate operations and investments, meeting quarterly, and is widening the remit of the Asset Management Portfolio Board. Additionally, an external review of the departmental operating model and project delivery function has been commissioned, with the final report due in Spring 2026.

HM Treasury

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4 Conclusion Accepted

53rd Report - Cost of maintaining …

Report FCDO progress on embedding quality estates data collection and implementing an integrated management system.

FCDO does not have all the data it needs to manage its estate effectively. FCDO has developed its central IT systems separately and they are not integrated with each other, or with systems at overseas posts. Overseas posts are responsible … Read more

Government Response

The government agrees with the recommendation and states that it has implemented it by writing to the Committee alongside the Treasury Minute publication to set out the requested progress.

HM Treasury

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5 Conclusion Accepted

53rd Report - Cost of maintaining …

Restart centrally collecting and analysing lessons learned from all FCDO estate capital projects.

Some FCDO high-profile estate projects have run significantly over time and budget. FCDO carries out large scale estate capital projects to refurbish or replace its buildings, but some recent projects, such as in Washington D.C. and Ottawa, have run significantly … Read more

Government Response

The FCDO is re-establishing a comprehensive, centrally collated lessons-learned process for capital projects, with findings to be shared across teams. Its new Design Authority will embed these lessons into project designs, and strengthened gateway reviews will scrutinize cost, procurement, and design at key RIBA stages.

HM Treasury

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6 Recommendation Accepted

53rd Report - Cost of maintaining …

Complete FCDO's estate workforce strategy detailing required staff, skills, and a gap closure delivery plan.

FCDO’s ability to manage its estate is hampered by a lack of staff with the necessary skills and experience. Larger FCDO posts can have dedicated estate managers and teams, but smaller posts do not always have estate specialists on site. … Read more

Government Response

The FCDO has completed its estate workforce strategy and has informed the Committee of its implementation alongside the publication of the Treasury Minute.

HM Treasury

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1 Conclusion Accepted

53rd Report - Cost of maintaining …

Committee gathered evidence on FCDO's overseas estate maintenance costs and management.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Foreign, Commonwealth and Development Office (FCDO) on the costs of maintaining its overseas estate.1

Government Response

The government states that this conclusion has been implemented and that the FCDO has written to the Committee alongside the publication of the Treasury Minute.

HM Treasury

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12 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO's overseas estate remains a severe risk despite capital increase and efficiency savings.

FCDO told us the capital increase was valuable and gives it a chance to sort out its estate, but it does not by itself get it out of the danger zone and its estate remains a severe risk to its … Read more

Government Response

The government agrees to ensure that it builds upon the more certain funding for its overseas estate it received in the 2025 Spending Review to put its overseas estate onto a sustainable footing with a target implementation date of end March 2029.

HM Treasury

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16 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO previously lacked integrated oversight of estate projects and policies, prompting a departmental merger.

FCDO’s large estates projects are delivered centrally, and FCDO considers that it has very strong controls on spending for specific projects.43 However, FCDO acknowledges that it currently lacks oversight of how all its projects align with each other or with … Read more

Government Response

The government agrees to implement plans to improve its governance model, including establishing a new estates governance board and publishing a new maintenance strategy for posts, with a target implementation date of March 2026.

HM Treasury

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17 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO's federated structure and inadequate post resources hinder comprehensive estate data collection.

FCDO told us that it is very challenging to collect the data it needs to manage its estate as it is a “federated organisation,” and its central estate function relies on staff at each of its 282 posts to provide … Read more

Government Response

The government agrees to set out the progress it has made ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that is updated regularly, implementing its integrated data management system, and to ensure that it is using the latest digital technology to monitor and manage its estate, including actions it is taking related to this.

HM Treasury

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19 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO's disparate and unintegrated IT systems hinder central collection and effective management of estate data.

Even if staff at posts start collecting estate data, FCDO faces a challenge collecting this data centrally so it can use it to manage its estate portfolio.50 FCDO uses a range of different IT systems to manage its estate. FCDO … Read more

Government Response

The government agrees that FCDO should ensure the collection of good quality estates data is embedded into the standard work of its overseas posts, implement its integrated data management system, and use the latest digital technology to monitor and manage its estate.

HM Treasury

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20 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO acknowledges inadequate digital estate management, planning a comprehensive workplace system by 2028.

We note that modern property IT portals which are tried and tested are readily available. FCDO accepted that it is an organisation whose digital management of its large estate portfolio is not up to scratch and that it needs to … Read more

Government Response

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22 Conclusion Accepted

53rd Report - Cost of maintaining …

FCDO lacks crucial data on capital project delivery track record and performance.

FCDO completed or started work on 200 capital projects between April 2018 and November 2024, with a total value of £850 million. FCDO does not hold data on its track record in delivering its projects, but several high-profile projects have … Read more

Government Response

FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026

HM Treasury

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23 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO fails to centrally log lessons learned from major capital projects.

FCDO told us it had conducted lessons learned exercises for both the Washington and Ottawa projects and does so for all its major projects. However, FCDO does not currently record all its lessons in a single central log. FCDO told … Read more

Government Response

FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026

HM Treasury

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24 Recommendation Accepted

53rd Report - Cost of maintaining …

Overseas posts face inadequate capacity and skills for proper estate maintenance.

Posts not covered by regional facilities management contracts have to use in-house staff or local contractors.65 While larger posts can have dedicated estate managers and estates teams, smaller posts may not have estates specialists on site.66 FCDO’s recent ‘FMR24’ exercise … Read more

Government Response

The government agrees to complete its estate workforce strategy, setting out staff and skills needs, current staff and skills, and a plan to close any gaps.

HM Treasury

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26 Recommendation Accepted

53rd Report - Cost of maintaining …

FCDO lacks a comprehensive workforce plan for estate management capabilities.

The NAO report highlighted that FCDO has not produced a workforce plan to understand and address capacity and capability issues either in ESND or at posts.72 FCDO told us that while it has skilled professionals in property based in the … Read more

Government Response

The government agrees with the Committee’s recommendation and states it has been implemented, noting that the FCDO has written to the Committee alongside the publication of the Treasury Minute.

HM Treasury

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Government Response AI assessment · 24 of 9 classified

Accepted 14

Acknowledged 5

Deferred 3

Not Addressed 2

Total 9 recs + 17 conclusions

Correspondence 4 letters

16 Mar 2026 From committee Letter to the Permanent Secretary of the Foreign, Commonwealth and Development Office relating to Treasury Minute response: Cost of maintaining the FCDO’s overseas estate, 16 March 2026

Parliament page

26 Jan 2026 To committee Letter from the Permanent Under-Secretary at the Foreign, Commonwealth, and Development Office relating to the Committee’s Fifty-third Report on the Cost of maintaining the FCDO’s overseas estate, 16 January 2026

Parliament page

4 Sep 2025 From committee Letter to the Permanent Under-Secretaries of the Foreign, Commonwealth and Development Office relating to the FCDO’s management of Official Development Assistance (ODA), 18 August 2025

Parliament page

4 Sep 2025 To committee Letter from the Second Permanent Under-Secretary of State of the Foreign, Commonwealth and Development Office relating to the oral evidence session held on 10 July 2025 follow up on Equality Impact Assessments, 24 July 2025

Parliament page