Select Committee · Public Accounts Committee

Managing central government property

Status: Closed Opened: 26 Jul 2022 Closed: 24 Feb 2023 5 recommendations 16 conclusions 1 report

The Committee will question senior executives at the Cabinet Office and Government Property Agency Central government property, valued at £158 billion, is one of government’s largest assets. It includes offices, hospitals, academy schools, jobcentres, courts, prisons and museums. Managing central government property effectively helps to support government priorities such as net zero and levelling up. …

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Reports

1 report
Title HC No. Published Items Response
Thirty-First Report - Managing central government property HC 48 21 Dec 2022 21 Responded

Recommendations & Conclusions

7 items
2 Recommendation Thirty-First Report - Managing central … Accepted

The Cabinet Office’s efforts to update its property database have been subject to a series...

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 determined that an off-the-shelf system would not be capable of …

Government response. An analysis has been conducted and actions have been taken forward to the current procurement, so that the delivery will be supported with in-house technology expertise and will be in a phased manner.
HM Treasury
3 Recommendation Thirty-First Report - Managing central … Accepted

The land and science property portfolios do not have clear leads, which frustrates decision making...

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, based on how property is used. Ten portfolios have a …

Government response. Defra has agreed to be the portfolio lead for the land portfolio, and the lead for the science portfolio is likely to be the Department for Science, Innovation and Technology (DSIT), with a further update to be provided before summer …
HM Treasury
7 Conclusion Thirty-First Report - Managing central … Accepted

Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious.

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 cost for central government property was £22 billion which on …

Government response. The government will reduce the size of the government leasehold estate through the government Hubs programme and greater sharing of space across the public sector to achieve £500 million operating cost savings per annum by the end of the Spending …
HM Treasury
9 Conclusion Thirty-First Report - Managing central … Accepted

Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when...

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 £1.3 million contract. The Cabinet Office told us that it …

Government response. The government agreed with the Committee’s recommendation to get its new property database up and running as soon as possible with a target implementation date of Spring 2024.
HM Treasury
10 Recommendation Thirty-First Report - Managing central … Accepted

The Cabinet Office was not able to tell us when the inSite system would be...

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 new supplier. The Cabinet Office said it will not “put …

Government response. The government agrees with the recommendation to get the new property database up and running as soon as possible and has set a target implementation date of Spring 2024. It will continue to ensure the legacy system remains fully operational.
HM Treasury
13 Conclusion Thirty-First Report - Managing central … Accepted

Currently, ten of the twelve portfolios have a lead department.

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, we queried why two portfolios did not have a designated …

Government response. The government agreed with the Committee’s recommendation to name lead departments for the science and land portfolios and the Department for Environment, Food and Rural Affairs (Defra) has agreed to be the portfolio lead for the land portfolio and the …
HM Treasury
18 Conclusion Thirty-First Report - Managing central … Accepted

We questioned the Cabinet Office about how current turbulence in the property market may affect...

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 fire sale of assets.47 The Cabinet Office also explained its …

Government response. The government agreed with the Committee’s recommendation and will write to the Committee with information on how it intends to reach its property disposal target by April 2023.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
13 Oct 2022 Alex Chisholm · Cabinet Office, Dr Janet Young · Government Property Profession, Mark Chivers · Cabinet Office, Steven Boyd MBE · Government Property Agency View ↗

Correspondence

2 letters
DateDirectionTitle
8 Nov 2022 Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Ca…
17 Oct 2022 Correspondence from Alex Chisholm, Civil Service Chief Operating Officer and Pe…