Twenty-Fourth Report - Redevelopment of Defra’s animal health infrastructure
Select Committee
Public Accounts Committee
HC 42
16 November 2022
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty fourth report from Session 2022-23 · published 24 Feb 2023
Recommendations & Conclusions
24 results
2
Recommendation
Accepted
The Department has allowed the Weybridge site to deteriorate to a completely unacceptable degree, through...
Recommendation
The Department has allowed the Weybridge site to deteriorate to a completely unacceptable degree, through a combination of inadequate management and under investment. The Department has not managed the Weybridge site as an important national asset. It has not had …
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Government Response Summary
The government agreed and stated that Asset Management lessons learnt have been included in the procurement for the new Workplace and Facilities Management contract, and that the Weybridge site will have a dedicated Technical Services team with an increase of around 50% in technical management.
HM Treasury
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3
Recommendation
Accepted
The Weybridge site is continually vulnerable to a major breakdown which would severely impact the...
Recommendation
The Weybridge site is continually vulnerable to a major breakdown which would severely impact the APHA’s operations including responding to disease outbreaks. The Department and the APHA rate the risk of a major breakdown of facilities at the Weybridge site …
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Government Response Summary
The government agreed and will stress test their contingency plans and are regularly reviewing plans and running critical incident exercises, and is also in conversation with other cross government laboratories and partners.
HM Treasury
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4
Recommendation
Accepted
It is not yet certain that there will be sufficient investment in developing Weybridge’s capacity...
Recommendation
It is not yet certain that there will be sufficient investment in developing Weybridge’s capacity to ensure the UK’s long-term resilience to animal diseases. It is vital that the UK has the right science facilities to ensure its long-term resilience …
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Government Response Summary
The government agreed and will work with HM Treasury to establish a more certain funding position, refine its understanding of costs and benefits, and update the Committee via Treasury Minutes; £198 million has been allocated for preparatory work.
HM Treasury
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5
Recommendation
Accepted
There remains substantial uncertainty over the costs of the Weybridge redevelopment programme.
Recommendation
There remains substantial uncertainty over the costs of the Weybridge redevelopment programme. In developing its Programme Business Case the Department did more detailed work to understand the costs of the Programme. This increased its cost estimate from £1.2 billion in …
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Government Response Summary
The government agreed and will continue to develop its cost estimate, introduce cost ranges, and reflect uncertainty in those costings for the main investment decision in 2024.
HM Treasury
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7
Recommendation
Accepted
The redevelopment of Weybridge is a large construction programme with a range of commercial risks...
Recommendation
The redevelopment of Weybridge is a large construction programme with a range of commercial risks that will need careful management. The Weybridge redevelopment programme will have a range of contracts covering professional services and construction. The Department recognises the challenges …
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Government Response Summary
The government agreed and stated that Commercial Strategy Phase II has been endorsed by the SCAH Programme Board and that by May 2023, the programme will have options around Science Hub form of contract and competition.
HM Treasury
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11
Conclusion
Accepted
The Department recognised that it had failed to manage the Weybridge site properly given its...
Conclusion
The Department recognised that it had failed to manage the Weybridge site properly given its importance as a national asset. It said that it had approached the management of the site as if it was just a property asset, and …
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Government Response Summary
The government agrees with the committee’s conclusion and commits to fully adopting new asset management policies, a campus strategy by Q4 2022-23, implementing a new operational asset strategy, and improving facilities management with increased technical staffing and a procurement focused on science-specific capabilities.
HM Treasury
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12
Conclusion
Accepted
An illustration of the poor long-term management of the Weybridge site is the inappropriate facilities...
Conclusion
An illustration of the poor long-term management of the Weybridge site is the inappropriate facilities management contract. The Department explained that in 2009 it consolidated a number of facilities management contracts across its estate resulting in one contract covering a …
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Government Response Summary
The government agrees with the committee’s conclusion and commits to incorporating lessons learned from past management failures into the procurement for a new facilities management contract, implementing a new operational asset strategy, and increasing the dedicated Technical Services team at Weybridge by 50%.
HM Treasury
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13
Conclusion
Accepted
We questioned the Department about why it has taken such a long time to put...
Conclusion
We questioned the Department about why it has taken such a long time to put in place a redevelopment programme for Weybridge given the importance of the site. The Department explained that it first recognised there were significant problems in …
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Government Response Summary
The government agrees and states that the Asset Management Policy, Plan, and Weybridge Campus Strategy are on target for adoption by Q4 2022-23. It outlines specific procurement and asset management improvements, including industry-standard maintenance regimes and increased technical management.
HM Treasury
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14
Conclusion
Accepted
The Department confirmed that there have not been any serious breakdowns at the Weybridge site...
Conclusion
The Department confirmed that there have not been any serious breakdowns at the Weybridge site in recent years. The last major incident was in 2014 when backup generators failed, resulting in a loss of power to some of the high-containment …
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Government Response Summary
The government agrees with the committee’s conclusion, confirming comprehensive business continuity plans that are regularly reviewed and committing to finalizing the Weybridge Development Control Plan by early 2023, running regular critical incident exercises, and further understanding site vulnerabilities.
HM Treasury
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15
Conclusion
Accepted
The National Audit Office highlighted that a review of the Weybridge site in 2021 found...
Conclusion
The National Audit Office highlighted that a review of the Weybridge site in 2021 found more than 1,000 examples of “single points of failure – where loss of the system or asset will cause major catastrophic disruption to operations”.29 The …
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Government Response Summary
The government agrees with the concerns, stating it has comprehensive business continuity plans, conducts regular incident exercises, is developing a detailed understanding of site vulnerabilities, and is collaborating with other laboratories.
HM Treasury
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16
Conclusion
Accepted
The Department stated that it has a structure where risks are managed across the Weybridge...
Conclusion
The Department stated that it has a structure where risks are managed across the Weybridge site through its Science Facilities Joint Management Board. It also stated that the Department’s board and executive committee scrutinise the risks and mitigations at the …
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Government Response Summary
The government agrees with the committee’s conclusion, confirming comprehensive business continuity plans that are regularly reviewed and committing to finalizing the Weybridge Development Control Plan by early 2023, running regular critical incident exercises, and further understanding site vulnerabilities.
HM Treasury
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17
Conclusion
Accepted
The Chief Veterinary Officer explained that a major breakdown, resulting in reduced high containment laboratory...
Conclusion
The Chief Veterinary Officer explained that a major breakdown, resulting in reduced high containment laboratory capacity at the Weybridge site, would make it more difficult to respond to a major animal disease outbreak. For example, a major Foot and Mouth …
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Government Response Summary
The government agrees with the concerns, stating it has comprehensive business continuity plans, conducts regular incident exercises, is developing a detailed understanding of site vulnerabilities, and is collaborating with other laboratories.
HM Treasury
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18
Conclusion
Accepted
The Department and the APHA set out how the Weybridge redevelopment programme will provide the...
Conclusion
The Department and the APHA set out how the Weybridge redevelopment programme will provide the flexible laboratory facilities to improve the UK’s resilience to animal diseases in the long-term.35 However, it also recognised that it needs to mitigate the risks …
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Government Response Summary
The government agrees with the committee’s conclusion, committing to regular reviews of comprehensive business continuity plans, finalizing the Weybridge Development Control Plan by early 2023, conducting critical incident exercises, and developing a more detailed understanding of site vulnerabilities.
HM Treasury
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19
Conclusion
Accepted
The Chief Veterinary Officer clearly set out the importance of having modern, flexible laboratory facilities...
Conclusion
The Chief Veterinary Officer clearly set out the importance of having modern, flexible laboratory facilities to ensure the UK is resilient to animal diseases. The Department and the APHA highlighted the importance of the redevelopment of Weybridge to ensure this …
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Government Response Summary
The government agrees with the importance of modern facilities and commits £198 million for preparatory work on the Weybridge redevelopment, with the main investment decision expected by summer 2024.
HM Treasury
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23
Conclusion
Accepted
The Department started work on its Weybridge redevelopment programme in 2017, but has changed the...
Conclusion
The Department started work on its Weybridge redevelopment programme in 2017, but has changed the scope of the programme over time. Its Strategic Outline Case (June 2018) and Outline Business Case (March 2020) were focused on a construction programme to …
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Government Response Summary
The government agrees with the Committee, with a target implementation date of March 2023, detailing the adoption of asset management policies and the new Workplace and Facilities Management contract to deliver an operational asset strategy for the Weybridge campus.
HM Treasury
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24
Conclusion
Accepted
The National Audit Office set out that HM Treasury approved funding of £1.2 billion for...
Conclusion
The National Audit Office set out that HM Treasury approved funding of £1.2 billion for the Weybridge redevelopment programme in March 2020, below the Department’s current cost estimate of £2.8 billion. The Department confirmed that this includes agreed funding of …
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Government Response Summary
The government agrees with the conclusion, committing to refine cost and benefit estimates for the Weybridge redevelopment programme through 2024-25, leading to a main investment decision in summer 2024, and has allocated £198 million for preparatory work.
HM Treasury
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25
Recommendation
Accepted
The Department stated that its Programme Business Case had set out a number of options...
Recommendation
The Department stated that its Programme Business Case had set out a number of options about the size and number of laboratories and the level of containment. Both the Department and the APHA said that they saw ACDP level four …
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Government Response Summary
The government agrees to work with HM Treasury to establish a more certain funding position for the Weybridge redevelopment program and will refine its understanding of the costs and benefits, required by Summer 2024, and allocated £198 million for preparatory work, with a target implementation date of Summer 2024.
HM Treasury
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28
Recommendation
Accepted
The Department acknowledged that there remains substantial uncertainty over its cost estimate.
Recommendation
The Department acknowledged that there remains substantial uncertainty over its cost estimate. In particular, there are a lot of risks in undertaking this redevelopment programme on an operational site and more work is needed to understand these risks and the …
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Government Response Summary
The government agrees to continue developing its cost estimate for the Weybridge redevelopment programme, clarifying uncertainties and using cost ranges, with a target implementation date of Summer 2024.
HM Treasury
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29
Recommendation
Accepted
The Department said that its Programme Business Case had built in substantial allowance for inflation,...
Recommendation
The Department said that its Programme Business Case had built in substantial allowance for inflation, approximately £360 million over the lifetime of the redevelopment programme. It stated that for the current phase of the programme up to 2024 it was …
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Government Response Summary
The government agrees to continue developing its cost estimate for the Weybridge redevelopment programme, including the use of cost ranges to illustrate the level of uncertainty. Target implementation date is Summer 2024.
HM Treasury
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30
Recommendation
Accepted
The Department accepted that it had used single point estimates for its Programme Business Case...
Recommendation
The Department accepted that it had used single point estimates for its Programme Business Case cost estimate rather than ranges. The National Audit Office highlighted that the IPA considers the use of ranges as best practice. The Department confirmed that …
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Government Response Summary
The government agrees to continue developing its cost estimate for the Weybridge redevelopment programme, clarifying uncertainties and using cost ranges, with a target implementation date of Summer 2024.
HM Treasury
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32
Recommendation
Accepted
The Department stated that the Weybridge redevelopment programme is very high on its risk register...
Recommendation
The Department stated that the Weybridge redevelopment programme is very high on its risk register and is part of its major programmes portfolio. As a result, it sees the programme as a priority area for staffing.59 The National Audit Office …
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Government Response Summary
The government agrees to ensure that it has the right staff capability and capacity to deliver the Weybridge redevelopment programme, including a review of capacity and capability requirements for the full lifecycle of the programme. Target implementation date: June 2023
HM Treasury
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33
Recommendation
Accepted
We asked the Department about progress it has made on the Government’s request to draw...
Recommendation
We asked the Department about progress it has made on the Government’s request to draw up plans to reduce staff numbers and how the Weybridge redevelopment programme would be accommodated within these plans. The Department stated that it is in …
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Government Response Summary
The government agrees to ensure the Weybridge redevelopment programme has sufficient staff capability and capacity and will report back on its plans after finalising wider staff reduction plans, with a target implementation date of June 2023. The programme continues to recruit and is reviewing capacity and capability requirements.
HM Treasury
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34
Recommendation
Accepted
The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of...
Recommendation
The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of contracts covering professional services and construction.62 The Department recognised the challenges of integrating a large number of suppliers and it told us that it has …
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Government Response Summary
The government agrees to report back on progress in developing its commercial strategy for the Weybridge redevelopment, including contract structure and competition, with a target implementation date of June 2023. Commercial Strategy Phase II has been endorsed and Phase III is in development.
HM Treasury
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35
Recommendation
Accepted
The Department also recognised that it needs to build up its commercial capability to enable...
Recommendation
The Department also recognised that it needs to build up its commercial capability to enable it to act as an intelligent client and to manage the range of suppliers effectively. It stated that it had been too optimistic in its …
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Government Response Summary
The government agrees to report back on progress in developing its commercial strategy for the Weybridge redevelopment, including contract structure and competition, with a target implementation date of June 2023. Commercial Strategy Phase II has been endorsed and Phase III is in development.
HM Treasury
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