Thirty-First Report - Managing central government property

Select Committee
Public Accounts Committee HC 48 21 December 2022
Report Status Response document linked Recorded deadline: 21 Feb 2023

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Conclusions & Recommendations 21 items (6 recs)
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Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty first report from Session 2022-23 · published 24 Feb 2023
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Recommendations & Conclusions

21 results
2 Recommendation
The Cabinet Office’s efforts to update its property database have been subject to a series...
Recommendation
The Cabinet Office’s efforts to update its property database have been subject to a series of unnecessary delays and setbacks. The Cabinet Office announced its new property database in 2018, with an anticipated launch date in 2021. The Cabinet Office … Read more
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3 Recommendation
The land and science property portfolios do not have clear leads, which frustrates decision making...
Recommendation
The land and science property portfolios do not have clear leads, which frustrates decision making and creates a lack of accountability for their management. In 2021, the Cabinet Office organised government property into twelve portfolios, such as health or defence, … Read more
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4 Recommendation
We are sceptical that the Government Hubs programme still represents good value for money in...
Recommendation
We are sceptical that the Government Hubs programme still represents good value for money in the current climate. The Government Hubs programme relocates civil servants from small offices into large, modern government hubs located in cities across the United Kingdom. … Read more
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5 Conclusion
In addition to this, the Cabinet Office should update us yearly on the rollout of...
Conclusion
In addition to this, the Cabinet Office should update us yearly on the rollout of the hubs programme. Such updates should include the lease term and next available break point for each GPA hub, the extent to which offices are … Read more
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6 Recommendation
It is unclear how the government will meet its target for property disposals, given the...
Recommendation
It is unclear how the government will meet its target for property disposals, given the past struggles of such programmes and current market uncertainty. The new government property strategy has set a target for disposing of surplus property, to generate … Read more
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7 Conclusion
Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious.
Conclusion
Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. The Cabinet Office could not tell us if the government’s current operating cost to property value ratio is a good one. In 2020–2021, the operating … Read more
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8 Recommendation
None of the witnesses were able to tell us at the hearing how many of...
Recommendation
None of the witnesses were able to tell us at the hearing how many of the 12 HMRC hubs were let on 25-year unbreakable leases. They thought it was one or two, the Permanent Secretary of the Cabinet Office subsequently … Read more
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1 Conclusion
On the basis of a Report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a Report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, including the Permanent Secretary, Chief Property Officer, the Government Head of the Property Profession and the Chief Executive of the Government … Read more
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9 Conclusion
Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when...
Conclusion
Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when granted an extension. The Cabinet Office terminated its contract with Landmark solutions in July 2022, by which point it had paid out £880,000 of the … Read more
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10 Recommendation
The Cabinet Office was not able to tell us when the inSite system would be...
Recommendation
The Cabinet Office was not able to tell us when the inSite system would be functional or how much it will cost. The Cabinet Office stated that such information could only be provided after it agreed a contract with a … Read more
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11 Conclusion
In 2021, the Cabinet Office categorised government property into twelve portfolios based on how property...
Conclusion
In 2021, the Cabinet Office categorised government property into twelve portfolios based on how property is used.27 For some portfolios, such as defence or prisons, a single department or arm’s-length body holds all the relevant properties. In other portfolios, such … Read more
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12 Conclusion
The government believes that this portfolio approach leads to improved data and management, as well...
Conclusion
The government believes that this portfolio approach leads to improved data and management, as well as increased transparency and accountability.29 The new government property strategy lays out plans for each portfolio to have its own strategy by March Read more
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13 Conclusion
Currently, ten of the twelve portfolios have a lead department.
Conclusion
Currently, ten of the twelve portfolios have a lead department. The science and land portfolios do not have a lead.32 Given the importance of portfolio management to government’s plans for the estate, and in ensuring a single point of accountability, … Read more
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14 Conclusion
Another of the government’s major property initiatives is the Government Hubs programme.
Conclusion
Another of the government’s major property initiatives is the Government Hubs programme. The government plans to relocate civil servants from hundreds of small offices into dozens of large, modern government hubs that are strategically located in cities across the United … Read more
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15 Conclusion
We questioned whether the GPA used long-term leases for its government hubs, which might commit...
Conclusion
We questioned whether the GPA used long-term leases for its government hubs, which might commit the government to paying above-market rents in the years to come.39 The GPA told us that the hubs programme relies on a mix of freeholds, … Read more
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16 Conclusion
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 … Read more
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17 Conclusion
As part of the plan to ensure a “smaller, better, greener” estate, the new government...
Conclusion
As part of the plan to ensure a “smaller, better, greener” estate, the new government property strategy has set a target for disposing of surplus property. The Cabinet Office intends to generate £1.5 billion in property disposals by 2025, £500 … Read more
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18 Conclusion
We questioned the Cabinet Office about how current turbulence in the property market may affect...
Conclusion
We questioned the Cabinet Office about how current turbulence in the property market may affect this target.46 The Cabinet Office acknowledged these risks, particularly surrounding valuation. It assured us it would seek appropriate professional advice and there would be no … Read more
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19 Conclusion
We have reported several times before about problems with land disposals programmes.
Conclusion
We have reported several times before about problems with land disposals programmes. For example, in 2021, we commented on the slow progress that the Ministry of Defence was making reducing its estate and in 2019 we noted that almost all … Read more
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20 Conclusion
The new strategy’s emphasis on efficiency is also reflected in the plan to cut the...
Conclusion
The new strategy’s emphasis on efficiency is also reflected in the plan to cut the estate’s annual running costs by £500 million.51 In 2020–2021, the operating cost for central government property was £22 billion.52 We asked the Cabinet Office if … Read more
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21 Conclusion
We questioned whether the government’s plan to save £500 million on operating costs by 2025...
Conclusion
We questioned whether the government’s plan to save £500 million on operating costs by 2025 was ambitious enough, noting that it only represents approximately a 2% reduction.55 Cabinet Office officials told us the target was a cautious one and that … Read more
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