53rd Report - Cost of maintaining the FCDO’s overseas estate

Select Committee
Public Accounts Committee HC 884 12 November 2025
Report Status Government responded
Conclusions & Recommendations 26 items (9 recs)
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Government Response (AI assessment · 26 of 26 classified)
Accepted 16
Acknowledged 5
Deferred 3
Not Addressed 2
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifth-third report from Session 2024-26 · published 19 Jan 2026
Read the government response ↗ Response on the tracker

Recommendations & Conclusions

26 results
2 Conclusion Acknowledged
Ensure FCDO overseas estate achieves sustainable footing with detailed backlog reduction plans
Conclusion
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
Government Response Summary
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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3 Conclusion Accepted
Implement FCDO's improved estate governance model, establishing a new board and publishing a maintenance strategy.
Conclusion
FCDO’s central estate function does not have adequate oversight of estate activities, both at overseas posts and across its project portfolio. Eighty-four percent of overseas posts have responsibility for maintaining their own estate, either through in-house teams or local contractors, … Read more
Government Response Summary
The government has established a new Estates Committee in October 2025 to strategically review estate operations and investments, meeting quarterly, and is widening the remit of the Asset Management Portfolio Board. Additionally, an external review of the departmental operating model and project delivery function has been commissioned, with the final report due in Spring 2026.
HM Treasury
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4 Conclusion Accepted
Report FCDO progress on embedding quality estates data collection and implementing an integrated management system.
Conclusion
FCDO does not have all the data it needs to manage its estate effectively. FCDO has developed its central IT systems separately and they are not integrated with each other, or with systems at overseas posts. Overseas posts are responsible … Read more
Government Response Summary
The government agrees with the recommendation and states that it has implemented it by writing to the Committee alongside the Treasury Minute publication to set out the requested progress.
HM Treasury
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5 Conclusion Accepted
Restart centrally collecting and analysing lessons learned from all FCDO estate capital projects.
Conclusion
Some FCDO high-profile estate projects have run significantly over time and budget. FCDO carries out large scale estate capital projects to refurbish or replace its buildings, but some recent projects, such as in Washington D.C. and Ottawa, have run significantly … Read more
Government Response Summary
The FCDO is re-establishing a comprehensive, centrally collated lessons-learned process for capital projects, with findings to be shared across teams. Its new Design Authority will embed these lessons into project designs, and strengthened gateway reviews will scrutinize cost, procurement, and design at key RIBA stages.
HM Treasury
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6 Recommendation Accepted
Complete FCDO's estate workforce strategy detailing required staff, skills, and a gap closure delivery plan.
Recommendation
FCDO’s ability to manage its estate is hampered by a lack of staff with the necessary skills and experience. Larger FCDO posts can have dedicated estate managers and teams, but smaller posts do not always have estate specialists on site. … Read more
Government Response Summary
The FCDO has completed its estate workforce strategy and has informed the Committee of its implementation alongside the publication of the Treasury Minute.
HM Treasury
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1 Conclusion Accepted
Committee gathered evidence on FCDO's overseas estate maintenance costs and management.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Foreign, Commonwealth and Development Office (FCDO) on the costs of maintaining its overseas estate.1
Government Response Summary
The government states that this conclusion has been implemented and that the FCDO has written to the Committee alongside the publication of the Treasury Minute.
HM Treasury
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7 Conclusion Deferred
FCDO estate strategy development remains complex, balancing central oversight with local flexibility and diverse properties.
Conclusion
In 2010 the Public Accounts Committee concluded that the then Foreign and Commonwealth Office’s (FCO) estate strategy “provided a high-level description of the estate’s strategic aims but lacked detail on its estate requirements, whether the estate met these requirements, and … Read more
Government Response Summary
The government response is entirely unrelated to the FCDO estate strategy, instead detailing actions regarding "Britain's illegal meat crisis" and biosecurity at the border, including potential funding increases for Dover Port Health Authority and a new methodology for estimating imports by early 2026.
HM Treasury
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8 Conclusion Deferred
FCDO now better positioned to develop its global estate strategy with improved data and new resources.
Conclusion
FCDO told us it is now in a better position than it was previously to make progress in developing its estate strategy. It considers itself to have better data on its overseas estate than it had before, and has had … Read more
Government Response Summary
The government response is entirely unrelated to the FCDO estate strategy, instead detailing actions regarding vaccine availability for animal diseases, including a five-year multi-stakeholder Action Plan to be published in late 2026 and an ongoing assessment of a Bovine TB vaccine application.
HM Treasury
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9 Conclusion Deferred
FCDO prioritises estate safety, compliance, and security as its paramount strategic goal for staff welfare.
Conclusion
FCDO’s first strategic goal for its estate is for it to be safe, compliant with all relevant health and safety standards, and for it to be as secure as possible.19 The Permanent Under-Secretary told us that his most important duty … Read more
Government Response Summary
The government response is entirely unrelated to the FCDO estate, instead detailing work on negotiations for a Sanitary and Phytosanitary (SPS) agreement with the EU and plans to examine strategic themes for strengthening long-term resilience to animal disease.
HM Treasury
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10 Conclusion Not Addressed
Poor condition of FCDO's overseas estate presents a severe risk and significant maintenance backlog.
Conclusion
FCDO told us that it is not happy with the current condition of its overseas estate and that this presents a severe risk to the organisation.21 Of FCDO’s 6,500 overseas buildings, 933 (around 15%) do not meet its internal target … Read more
Government Response Summary
Acknowledges the committee's conclusion that much of FCDO's overseas estate is in poor condition and has a large maintenance backlog.
HM Treasury
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11 Conclusion Acknowledged
FCDO's unsustainable estate funding model via property sales replaced by an annual departmental settlement.
Conclusion
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 Summary
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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12 Recommendation Accepted
FCDO's overseas estate remains a severe risk despite capital increase and efficiency savings.
Recommendation
FCDO told us the capital increase was valuable and gives it a chance to sort out its estate, but it does not by itself get it out of the danger zone and its estate remains a severe risk to its … Read more
Government Response Summary
The government agrees to 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 with a target implementation date of end March 2029.
HM Treasury
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13 Conclusion Acknowledged
Diverse and locally managed overseas estate requires a flexible, centrally-owned strategy for optimal asset use.
Conclusion
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 Summary
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
Posts routinely fail to monitor and maintain properties, prioritising reactive over preventative maintenance.
Conclusion
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 Summary
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 Accepted
FCDO lacks real-time oversight of how posts spend allocated estate maintenance funds.
Conclusion
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
Government Response Summary
The government agrees and is establishing a new Estates Committee by October 2025 to strategically review estate operations and investments. It is also widening the remit of the Asset Management Portfolio Board and commissioning an external review by Spring 2026 to improve the operating model and project delivery.
HM Treasury
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16 Recommendation Accepted
FCDO previously lacked integrated oversight of estate projects and policies, prompting a departmental merger.
Recommendation
FCDO’s large estates projects are delivered centrally, and FCDO considers that it has very strong controls on spending for specific projects.43 However, FCDO acknowledges that it currently lacks oversight of how all its projects align with each other or with … Read more
Government Response Summary
The government agrees to implement plans to improve its governance model, including establishing a new estates governance board and publishing a new maintenance strategy for posts, with a target implementation date of March 2026.
HM Treasury
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17 Recommendation Accepted
FCDO's federated structure and inadequate post resources hinder comprehensive estate data collection.
Recommendation
FCDO told us that it is very challenging to collect the data it needs to manage its estate as it is a “federated organisation,” and its central estate function relies on staff at each of its 282 posts to provide … Read more
Government Response Summary
The government agrees to set out the progress it has made ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that is updated regularly, implementing its integrated data management system, and to ensure that it is using the latest digital technology to monitor and manage its estate, including actions it is taking related to this.
HM Treasury
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18 Conclusion Not Addressed
FCDO's maintenance backlog was severely underestimated, necessitating external professionals for accurate assessment.
Conclusion
In November 2023, FCDO recognised that its £150 million estimate of its overseas estate maintenance backlog was likely to be an underestimate and commissioned professional surveyors to conduct a one-off exercise to identify the true backlog.47 FCDO ran a programme … Read more
Government Response Summary
Acknowledges the committee's conclusion that FCDO's overseas estate is in poor condition and has a large maintenance backlog.
HM Treasury
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19 Recommendation Accepted
FCDO's disparate and unintegrated IT systems hinder central collection and effective management of estate data.
Recommendation
Even if staff at posts start collecting estate data, FCDO faces a challenge collecting this data centrally so it can use it to manage its estate portfolio.50 FCDO uses a range of different IT systems to manage its estate. FCDO … Read more
Government Response Summary
The government agrees that FCDO should ensure the collection of good quality estates data is embedded into the standard work of its overseas posts, implement its integrated data management system, and use the latest digital technology to monitor and manage its estate.
HM Treasury
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20 Recommendation Accepted
FCDO acknowledges inadequate digital estate management, planning a comprehensive workplace system by 2028.
Recommendation
We note that modern property IT portals which are tried and tested are readily available. FCDO accepted that it is an organisation whose digital management of its large estate portfolio is not up to scratch and that it needs to … Read more
Government Response Summary
The government agrees to set out the progress it has made ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that is updated regularly, implementing its integrated data management system, and to ensure that it is using the latest digital technology to monitor and manage its estate, including actions it is taking related to this.
HM Treasury
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21 Conclusion Accepted
Ageing heritage assets in FCDO's overseas estate require £2.1 billion for essential capital projects.
Conclusion
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
Government Response Summary
The government agrees and is developing a more robust methodology for its annual overseas estate works programme by March 2029, leveraging data to allocate maintenance budgets based on risk and value for money, and has committed to writing to the Committee regarding implementation and within six months.
HM Treasury
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22 Conclusion Accepted
FCDO lacks crucial data on capital project delivery track record and performance.
Conclusion
FCDO completed or started work on 200 capital projects between April 2018 and November 2024, with a total value of £850 million. FCDO does not hold data on its track record in delivering its projects, but several high-profile projects have … Read more
Government Response Summary
FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026
HM Treasury
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23 Recommendation Accepted
FCDO fails to centrally log lessons learned from major capital projects.
Recommendation
FCDO told us it had conducted lessons learned exercises for both the Washington and Ottawa projects and does so for all its major projects. However, FCDO does not currently record all its lessons in a single central log. FCDO told … Read more
Government Response Summary
FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026
HM Treasury
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24 Recommendation Accepted
Overseas posts face inadequate capacity and skills for proper estate maintenance.
Recommendation
Posts not covered by regional facilities management contracts have to use in-house staff or local contractors.65 While larger posts can have dedicated estate managers and estates teams, smaller posts may not have estates specialists on site.66 FCDO’s recent ‘FMR24’ exercise … Read more
Government Response Summary
The government agrees to complete its estate workforce strategy, setting out staff and skills needs, current staff and skills, and a plan to close any gaps.
HM Treasury
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25 Conclusion Acknowledged
FCDO provides diverse support to posts for estate management and maintenance.
Conclusion
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 Summary
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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26 Recommendation Accepted
FCDO lacks a comprehensive workforce plan for estate management capabilities.
Recommendation
The NAO report highlighted that FCDO has not produced a workforce plan to understand and address capacity and capability issues either in ESND or at posts.72 FCDO told us that while it has skilled professionals in property based in the … Read more
Government Response Summary
The government agrees with the Committee’s recommendation and states it has been implemented, noting that the FCDO has written to the Committee alongside the publication of the Treasury Minute.
HM Treasury
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