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

5 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 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 visitors. However, 933 of its 6,500 properties (around 15%) fail to meet its own condition targets and a £450 million overseas maintenance backlog has built up over time. FCDO acknowledged that the state of its overseas estate was quite shocking and that it was a severe risk to the organisation. FCDO also has an estimated £2.1 billion 2 pipeline of larger estate renewal or replacement projects. Since 2010, FCDO has funded its estate requirements through large asset sales, in particular in Bangkok and Tokyo. However, FCDO and HM Treasury have agreed that major asset sales are no longer viable, and, in the 2025 Spending Review, FCDO agreed with HM Treasury an annual settlement of £50 million resource funding and £100 million capital funding to maintain its estate. This new funding model alone will not address the scale of the current backlog, and FCDO’s estate remains one of its top department risks. FCDO’s 2025 Spending Review settlement also requires it to make 5% efficiency savings annually. FCDO acknowledges that getting its overseas estate right is one of its top priorities. It has committed to reduce the size and complexity of its estate, prioritise its resource and capital spending to have the greatest impact, and to identify efficiencies. recommendation FCDO should: a. 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. b. Alongside its Treasury Minute response, write to the Committee setting out its plans for reducing its maintenance backlog, prioritising its resource and capital funding, and achieving efficiencies from its estate. c. Write to the Committee within six months categorising which build Show less

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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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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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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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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