22 Rejected

The funds for improving Single Living Accommodation are not ring-fenced.

Conclusion
The funds for improving Single Living Accommodation are not ring-fenced. While the Department stressed that Single Living Accommodation was a very high priority in Defence, it also stated there are other priorities.66 It faces wider affordability challenges, and the equipment portfolio, which is 41% of the entire defence budget, is unaffordable. In addition, the Department’s Infrastructure Plan 2020–2030 faces a £1.4 billion shortfall. Historically, the Department has struggled to maintain its accommodation against wider affordability pressures and it has re-directed funding allocated to the estate to meet other financial pressures. This led to a ‘fix on fail’ maintenance regime being adopted in 2010, which has contributed to a £1.5 billion deferred maintenance backlog across all accommodation.67 The Department stated that its figures show it currently spends about a third of what the Royal Institution of Chartered Surveyors (RICS) suggests is needed to maintain the estate.68 We questioned whether the funds available for Single Living Accommodation were anything like enough, given the backlog. The Department could only state that the funds would allow it to deal with the poorest accommodation.69
Government Response Summary
The government agrees that funding Single Living Accommodation (SLA) improvements is important but explicitly states it will not ring-fence funds centrally, as investment remains a delegated matter for single Services.
Government Response
Rejected
HM Government Rejected
6.2 The department agrees that funding SLA improvements is important and needs a higher priority than it has historically been afforded. It is important to note that investment into SLA remains a delegated matter for the single Services. The department sets policy and standards but does not centrally ringfence funding for accommodation so that it can continue to ensure resources are appropriately balanced across all its priorities and that Top-Level Budget holders are empowered to make appropriate funding decisions.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.3 yrs
Report published 23 Apr 2021