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had a poor understanding of its overseas estate and the information it had on these properties was incomplete, out-of-date and inaccurate.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

7 results

2 Conclusion Acknowledged

53rd Report - Cost of maintaining …

Ensure FCDO overseas estate achieves sustainable footing with detailed backlog reduction plans

Much of FCDO’s overseas estate is in poor condition, and its estates maintenance backlog would cost an estimated £450 million to resolve. FCDO’s first priority with its overseas estate is providing a safe and legally compliant estate for staff and … Read more Much of FCDO’s overseas estate is in poor condition, and its estates maintenance backlog would cost an estimated £450 million to resolve. FCDO’s first priority with its overseas estate is providing a safe and legally compliant estate for staff and visitors. However, 933 of its 6,500 properties (around 15%) fail to meet its own condition targets and a £450 million overseas maintenance backlog has built up over time. FCDO acknowledged that the state of its overseas estate was quite shocking and that it was a severe risk to the organisation. FCDO also has an estimated £2.1 billion 2 pipeline of larger estate renewal or replacement projects. Since 2010, FCDO has funded its estate requirements through large asset sales, in particular in Bangkok and Tokyo. However, FCDO and HM Treasury have agreed that major asset sales are no longer viable, and, in the 2025 Spending Review, FCDO agreed with HM Treasury an annual settlement of £50 million resource funding and £100 million capital funding to maintain its estate. This new funding model alone will not address the scale of the current backlog, and FCDO’s estate remains one of its top department risks. FCDO’s 2025 Spending Review settlement also requires it to make 5% efficiency savings annually. FCDO acknowledges that getting its overseas estate right is one of its top priorities. It has committed to reduce the size and complexity of its estate, prioritise its resource and capital spending to have the greatest impact, and to identify efficiencies. recommendation FCDO should: a. 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. b. Alongside its Treasury Minute response, write to the Committee setting out its plans for reducing its maintenance backlog, prioritising its resource and capital funding, and achieving efficiencies from its estate. c. Write to the Committee within six months categorising which build Show less

Government Response

The government agrees with the recommendation to put its overseas estate on a sustainable footing, reduce maintenance backlog, prioritise funding, and achieve efficiencies, but provides no specific details on how or when these actions will be taken or when the requested plans will be submitted to the Committee.

HM Treasury

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11 Conclusion Acknowledged

53rd Report - Cost of maintaining …

FCDO's unsustainable estate funding model via property sales replaced by an annual departmental settlement.

Since 2010, FCDO has funded its overseas estate capital and maintenance projects through property sales. It has generated £1.47 billion from sales, largely from a sale in Bangkok in 2018 and a partial sale of its Tokyo site in 2022. … Read more

Government Response

The FCDO will launch an Overseas Network Review (ONR) in January 2026 to rationalize the overseas estate and examine whether there are assets to release. Pending the outcome of the ONR, the estate strategy will focus on creating a safer, smaller, and more secure estate, reducing costs and carbon emissions, and collaborating with other diplomatic services. The estates strategy is due to be updated next in Spring 2026.

HM Treasury

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13 Conclusion Acknowledged

53rd Report - Cost of maintaining …

Diverse and locally managed overseas estate requires a flexible, centrally-owned strategy for optimal asset use.

FCDO’s overseas estate is diverse, including not just offices and residences but also churches, schools, cemeteries and amenities for staff.33 The overseas estate must also adapt to a wide variety of conditions, including different local laws and requirements, the presence … Read more

Government Response

FCDO’s overseas posts are responsible for managing their own operations, including their estates, with support from the Estates, Security and Network Directorate (ESND).

HM Treasury

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14 Conclusion Acknowledged

53rd Report - Cost of maintaining …

Posts routinely fail to monitor and maintain properties, prioritising reactive over preventative maintenance.

Posts have responsibility for maintaining their estates. This is funded through budgets allocated to posts by FCDO’s geographic directorates.36 The Head of Mission in each post—the Ambassador or High Commissioner— has the discretion to decide, within the broad budget areas … Read more

Government Response

FCDO’s overseas posts are responsible for managing their own operations, including their estates, with support from the Estates, Security and Network Directorate (ESND).

HM Treasury

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15 Conclusion

53rd Report - Cost of maintaining …

FCDO lacks real-time oversight of how posts spend allocated estate maintenance funds.

Around £530 million of FCDO’s estate funding is held centrally by ESND and around £127 million is allocated to posts. FCDO told us that it does know how much of this £127 million is spent by posts on their estate, … Read more

HM Treasury

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21 Conclusion

53rd Report - Cost of maintaining …

Ageing heritage assets in FCDO's overseas estate require £2.1 billion for essential capital projects.

FCDO’s overseas estate contains a number of large properties, including Embassies, official Residences and compounds.55 Many of these properties, such as the Washington Embassy or the British Ambassador’s Residence in Paris, are large heritage assets which perform a key role … Read more

HM Treasury

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25 Conclusion Acknowledged

53rd Report - Cost of maintaining …

FCDO provides diverse support to posts for estate management and maintenance.

ESND provides support to posts in managing their estates by setting corporate standards, and providing guidance and technical assistance. FCDO commissions around 75 regional specialists to support posts: regional technical leads that provide advice on maintenance to posts, and technical … Read more

Government Response

The government describes FCDO's role in managing its overseas estate, the challenges it faces, and the support it provides to posts.

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