Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. The Cabinet Office could not tell us if the government’s current operating cost to property value ratio is a good one. In 2020–2021, the operating cost for central government property was £22 billion which on a valuation of £158 billion is 13.92%, which is higher than we expect. This includes rent for leasehold property, as well as maintenance costs and other expenses. The new government property strategy announced plans to save £500 million on its annual operating costs by 2025, roughly a 2% reduction. Cabinet Office officials told us that the target was a cautious one and more savings may be found. For example, £8 billion per year is spent on facilities management. The Cabinet Office has recently issued new requirements for facilities management contracts which it expects to lead to improved contracts and better value for money.