Twentieth Report - Optimising the defence estate
Select Committee
Public Accounts Committee
HC 179
12 October 2021
Government Response (AI assessment · 28 of 29 classified)
Accepted
22
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2021-22 · published 14 Dec 2021
Recommendations & Conclusions
4 results
9
Conclusion
Acknowledged
The Department’s slow progress in reducing the size of its estate is because its initial...
Conclusion
The Department’s slow progress in reducing the size of its estate is because its initial plans were unrealistic, and consequentially it has spent far too much time re-planning and re-organising. For example, since 2018 it has fundamentally revised its disposal …
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Government Response Summary
The government agrees with the committee's observation on past slow progress in estate reduction, committing to a report by Summer 2022 and highlighting over £1 billion in site disposals since 2015 and ongoing optimisation efforts.
HM Treasury
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10
Conclusion
In 2019, the Department ended its 10-year contract with its Strategic Business Partner, led by...
Conclusion
In 2019, the Department ended its 10-year contract with its Strategic Business Partner, led by Capita, five years early because the contract was not delivering expected savings and improvements in running the DIO.12 This created a gap in the skills …
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HM Treasury
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11
Conclusion
Acknowledged
There are some signs in the last two to three years that the Department has...
Conclusion
There are some signs in the last two to three years that the Department has started to get a better grip of optimising its estate. The new Permanent Secretary told us that the Department now has good prospects for delivering …
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Government Response Summary
The government agrees with the committee's positive observations regarding the department gaining a better grip on estate optimisation, committing to provide a report by Summer 2022 and highlighting over £1 billion in site disposals and improved funding for estate programmes.
HM Treasury
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13
Conclusion
Acknowledged
The Department expects to spend £5.1 billion over the 25-year lifetime of the DEO Portfolio...
Conclusion
The Department expects to spend £5.1 billion over the 25-year lifetime of the DEO Portfolio to 2040. In 2021, it resolved the medium-term funding shortfall in the Portfolio— caused by the government’s 2018 decision to withdraw the private finance model—and …
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Government Response Summary
The government acknowledges the committee's summary of DEO Portfolio funding, confirming its current £9.3 billion investment over ten years, with DEO now fully funded. It also states that work to update the plan is expected to be completed by Spring 2022, with results shared with the Committee.
HM Treasury
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