17 Accepted

In 2016, the Department expected the DEO Portfolio would reduce the size of the built...

Conclusion
In 2016, the Department expected the DEO Portfolio would reduce the size of the built estate by 25%, and that other sales would reduce it by 5%. However, since 2016 the Department has shifted emphasis from primarily identifying land to sell to ‘optimising’ its use of the estate. This change, coupled with the requirements of the recent Integrated Review, essentially renders this single target to reduce the size of the estate by 30% meaningless.25 The Department admitted it will get nowhere near the target, and by 2040–41 it now expects to reduce the built estate by just 13% (10,100 hectares) through the DEO Portfolio and by 3% (2,000 hectares) from other sales. It also expects to sell 35 training sites comprising 0.5% of its rural estate (855 hectares). The Department wrote to us after the evidence session and confirmed that the 30% target is no longer appropriate and will not be pursued.26 It recognises that it needs more specific targets focussing on deliverables over the lifetime of this Parliament to encourage it to identify and dispose of land it no longer needs, but it could not tell us what these should be.27 Management information
Government Response Summary
The government agrees with the committee's observation, confirming the 30% estate reduction target is no longer pursued. It commits to delivering a refreshed DEO portfolio plan, aligning targets with the 2021 Integrated Review, expected by Spring 2022.
Government Response
Accepted
HM Government Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2022 2.2 The department has a clear plan for modernising its capabilities and reducing the size of the estate to meet Defence’s requirements, aligning with the 2021 Integrated Review (IR) and publication of the Command Paper. The department now has clarity on its near-term priorities and is committed to delivering the military requirement as efficiently as possible. 2.3 The department confirmed with Defence Ministers that the 2015 target to reduce the built estate by 30% is no longer appropriate and will no longer be pursued. The original target, which had been set out in the 2015 Strategic Defence and Security Review, was a top-down target assumption and was not based on detailed plans. Following the 2020 SR, 2021 IR and the publication of the Defence Command Paper, the department has a clear plan for modernising its capabilities and reducing the size of the estate of the next few years. 2.4 The DEO Portfolio will align its targets and benefits with the outcome of the 2021 IR. The department is working on delivering a refreshed DEO portfolio plan to reflect a post-IR capability laydown. Given the work involves refreshing the plan and re-costing implications of project changes and benefits, it is expected to be completed and formally endorsed within the department by Spring 2022.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.8 yrs
Report published 12 Oct 2021