9
Conclusion
Twentieth Report - Optimising the defen…
Acknowledged
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 plans three times, shifting away from prioritising disposals to optimising …
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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 plans three times, shifting away from prioritising disposals to optimising the use of its estate.11
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Government response AI 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.
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HM Treasury
11
Conclusion
Twentieth Report - Optimising the defen…
Acknowledged
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 its estate optimisation plans in the future, driven by a …
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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 its estate optimisation plans in the future, driven by a mindset of “delivery, delivery, delivery”.15 In 2018, it delegated budgets and liability for managing the estate back to TLBs, which the Department explained puts accountability and responsibility in the same place. The Department told us that it will be giving TLBs mandates in the next few months to start implementing and delivering each of their various programmes.16 Since May 2020, the DEO Portfolio has had revised governance arrangements which set out responsibilities for delivering and monitoring programmes within the Portfolio. The Department has established a central coordinating team which provides oversight and guidance to the Portfolio. This team also supports the Portfolio Board, which provides direction on implementing the Department’s strategy and holds the TLBs to account.17
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Government response AI 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.
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HM Treasury
13
Conclusion
Twentieth Report - Optimising the defen…
Acknowledged
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 has committed to a budget of £4.3 billion over the …
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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 has committed to a budget of £4.3 billion over the 10 years to March 2031. This budget relies on the Department generating sales income of £2.2 billion between 2021–22 and 2039–40, which it can then recycle in the Portfolio.20
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Government response AI 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 …
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HM Treasury