16 Accepted

The government does not yet fully understand how offices are being used post- pandemic.

Conclusion
The government does not yet fully understand how offices are being used post- pandemic. From the data available, GPA has calculated the usage of offices is down at least 25%.41 It explained that it is rolling out new methods of measuring usage based on Wi-Fi and swipe card data, but it will take time to implement these methods across the whole estate.42 If hybrid-working continues as it has, it is possible that fewer hubs will be required. The GPA told us that it will ensure that existing space is used before additional hubs are built. The GPA also said that future hubs can be smaller than originally planned, or cancelled altogether, if the space is no longer required.43 36 Letter from Cabinet Office to Committee dated 2 November 2022 37 Committee of Public Accounts, HMRC’s Performance in 2016–17, Twelfth Report of Session 2017–19, HC 456, 10 January 2017. 38 Qq 63 39 Qq 63, 64, 65 40 Qq 65, 66 41 Q 74, 113 42 Q 105 43 Q 113 Managing central government property 13 3 Government plans to generate savings through its property estate Disposing of property
Government Response Summary
The government agrees with the committee's observations and has responded by planning further reductions in the Central London estate, adjusting attendance rate assumptions to free up space, and considering alternative routes for property acquisition to improve value for money.
Government Response
Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Target implementation date: Summer 2023 The Government Hubs Programme is designed to deliver value for money through a smaller, better-utilised, better-condition office estate, with common technology, security, and improved sustainability. This will enable departments to share space, disposal of surplus estate, reduce maintenance costs, and improve productivity. The programme also enables the relocation of 22,000 roles to the regions by 2030 as part of the Places for Growth initiative. The programme has been faced with changes in ways of working due to the COVID-19 pandemic, a planned reduction in the size of the Civil Service (around 10% reduction) and recently significant construction inflation (10%) and a big increase in the cost of borrowing (by 50%). The Committee is therefore right to raise concerns about value for money. If the programme continued with its plan prior to the COVID-19 pandemic, it would still deliver value for money albeit this would be reduced due to changes in working patterns and market conditions. However, the Programme is not standing still and is making changes made possible by these changes to deliver even better value for money than originally planned. In response, the Programme has: planned for the further reduction of the Central London estate (17 buildings not 20, 16% less space) and examined ways to accelerate this; assumption on attendance rate (25% reduction agreed with a further reduction under consideration) enabling over 4,000 staff to be accommodated in existing estate and additional property to be released; and is considering alternative routes to market for acquisition.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 3.6 yrs
Report published 21 Dec 2022