Select Committee · Public Accounts Committee

Restoration and Renewal Recall

Status: Closed Opened: 13 Jan 2023 Closed: 21 Jul 2023 2 recommendations 32 conclusions 1 report

The Committee is recalling senior Parliamentary officials including the clerks of both Houses and the Chief Executives of the Restoration and Renewal Delivery Authority and Sponsor Body, to answer questions on the next steps in the programme. This follows the decision to abolish the Sponsor Body and reopen exploration of options for the works in …

Reports

1 report
Title HC No. Published Items Response
Fifty-Second Report - Restoration & Renewal of the Pala… HC 1021 17 May 2023 34 Responded

Recommendations & Conclusions

34 items
2 Conclusion Fifty-Second Report - Restoration &… Deferred

Present cost and time estimates in ranges and report Restoration and Renewal pilot progress.

There remains a lack of clarity over what a restored Palace will look like, and how it will be delivered, which makes the programme currently extremely difficult to cost with any certainty. In June 2022 we highlighted how critical value for money risks, which we had previously identified in October …

Government response. The government's response is irrelevant to the recommendation, discussing the cost of alcohol to society and related departmental work instead of the Palace of Westminster's R&R cost estimates and pilot progress.
HM Treasury
3 Conclusion Fifty-Second Report - Restoration &… Deferred

Publish annual performance reports and improve member engagement for Restoration Programme.

Transparency will be critical to facilitate accountability, and for Parliament and the public to gain confidence in the programme and its leadership. The current Client Board, alongside the Programme SRO, identified previous parliamentary engagement as having been insufficient. For example, in June 2022 we reported how the Commissions requested further …

Government response. The government's response is irrelevant to the recommendation, discussing funding for drug and alcohol treatment services instead of the Clerks' commitments to transparency and member engagement on the R&R programme.
HM Treasury
4 Recommendation Fifty-Second Report - Restoration &… Deferred

Set out process for Clerks to manage conflicts between legal responsibilities.

It is unclear how the Clerks will manage their legal responsibilities to the programme alongside those to individuals working in and visiting the Palace. From January 2023 the Clerks, acting jointly, have overall responsibility for the parliamentary building works. They acknowledge their new legislative responsibilities which they will be required …

Government response. The government's response is irrelevant to the recommendation, discussing drug strategy investment and alcohol treatment guidelines instead of the Clerks' process for handling conflicts of legal responsibility for the R&R programme.
HM Treasury
5 Conclusion Fifty-Second Report - Restoration &… Deferred

Develop clear plan to reiterate contractor responsibilities for timely incident reporting and accountability

Compliance with health and safety protocols, in particular reporting asbestos incidents, remains unsatisfactory. The Clerks have personal responsibility for the health and safety of those working and using the Palace. To fulfil this responsibility, they will rely on others, such as contractors working within the Palace to follow expected processes …

Government response. The government's response is irrelevant to the recommendation, discussing a Local Outcomes Framework dashboard for drug and alcohol treatment instead of the Clerks' plans for reiterating contractor responsibilities for R&R health and safety.
HM Treasury
1 Conclusion Fifty-Second Report - Restoration &… Deferred

Committee gathered evidence from key Palace restoration and renewal stakeholders

Following our previous reports on the restoration and renewal of the Palace of Westminster (the Palace), we took evidence from the Programme SRO and Head of the R&R Client team, the Delivery Authority Chief Executive, the Clerk of the House and the Clerk of the Parliaments.

Government response. The government's response is irrelevant to the committee's conclusion, discussing strategies to tackle alcohol harm instead of the committee's evidence-gathering on the Palace of Westminster's R&R programme.
HM Treasury
6 Conclusion Fifty-Second Report - Restoration &… Deferred

Palace of Westminster faces catastrophic damage risks, especially from fire incidents

The Clerks have legal responsibility for the safety of those working and using the Palace and the wider estate.9 The Clerk of the House of Commons told us he was very clear that eventually there will be ‘catastrophic and irreversible damage to the Palace’ if decisions continue to be deferred. …

Government response. The government's response is irrelevant to the committee's conclusion, discussing a substance misuse workforce strategic plan instead of the safety and fire risks within the Palace of Westminster.
HM Treasury
7 Conclusion Fifty-Second Report - Restoration &… Deferred

Palace of Westminster requires extensive and costly ongoing maintenance works

The House Administrations undertake maintenance works across the parliamentary estate. The Clerks told us maintenance costs totalled approximately £2 million per week, with the House Administrations spending around £100 million a year.13 The sheer quantity of building and maintenance work currently being undertaken was staggering with 4,000 maintenance or reactive …

Government response. The government's response is irrelevant to the committee's conclusion, discussing CDDO's legacy IT risk framework and remediation programmes instead of maintenance works on the parliamentary estate.
HM Treasury
8 Conclusion Fifty-Second Report - Restoration &… Accepted

Asbestos remains a serious and widespread concern within the Palace of Westminster

Asbestos remains a serious and pressing concern for those who live and work in the Palace and wider parliamentary estate – since 2016 there have been 8 asbestos incidents.16 The Chief Executive of the R&R Delivery Authority informed us asbestos could perhaps be found at 2,500 sites, including within inaccessible …

Government response. The Clerks agree, recognizing the need for excellent health and safety performance. They commit to utilizing the Programme Delivery Agreement to set explicit expectations for contractors regarding asbestos management and will implement a robust monitoring framework and assurances. Improvements to …
HM Treasury
9 Conclusion Fifty-Second Report - Restoration &… Accepted

Clerks rely on contractors for safety, but timely asbestos incident reporting remains an issue

To fulfil their statutory responsibilities, the Clerks rely on others, such as contractors working within the Palace to follow expected processes and meet standards.19 As the Clerks have outlined previously, they have established dedicated processes to help them report and manage serious events where asbestos has been discovered or disturbed.20 …

Government response. The Clerks agree, committing to use the Programme Delivery Agreement to set explicit health and safety expectations for contractors, seek assurances on performance, and establish a robust monitoring framework. Improvements to incident reporting are already underway, and a new Director …
HM Treasury
10 Conclusion Fifty-Second Report - Restoration &… Accepted

Recent asbestos incidents highlight ongoing contractor reporting failures and necessitate procedural review

Since then, there have been two further asbestos incidents, one of which the Clerks accepted had not been handled appropriately. In September 2022 a contractor did not inform the Clerks of an asbestos incident or limit the dangers as quickly as expected. Fortunately, the asbestos discovered, on that occasion in …

Government response. The Clerks agree, committing to reiterate health and safety importance and ensure contractors meet standards through the Programme Delivery Agreement and a robust monitoring framework. They confirm improvements to incident reporting and the ongoing recruitment of a Director of Parliamentary …
HM Treasury
11 Conclusion Fifty-Second Report - Restoration &… Accepted

Clerks prioritize Palace safety by strengthening teams, but confidence in robust structures is lacking

Managing the safety of the Palace remains a top priority for the Clerks and House Administrations.24 As they have been unhappy about the treatment of several safety issues, which also includes 12 instances of falling masonry, and given an increase in the volume of maintenance work, the Clerks have considered …

Government response. The Clerks agree on the need for robust safety structures and are implementing a Programme Delivery Agreement to ensure high safety standards with contractors. They are also continuing to improve incident reporting and plan to appoint an interim Director of …
HM Treasury
12 Conclusion Fifty-Second Report - Restoration &… Accepted

New statutory instrument implemented revised governance for Palace restoration and renewal programme

Following the House Commissions issuing a joint statement proposing changes to the approach and governance of the restoration and renewal programme in March 2022, the statutory instrument introducing these changes came into effect on 1st January

Government response. The government outlines key milestones for the R&R programme, including presenting a strategic case to both Houses by December 2023 and approving the Delivery Authority budget by March 2024, with regular quarterly progress reports.
HM Treasury
13 Conclusion Fifty-Second Report - Restoration &… Not Addressed

Programme leadership capacity significantly diminished following staff departures and recruitment difficulties.

During this time, the House Administrations also worked to transition from the former Sponsor Body into the R&R Client Team. We have previously highlighted the risk that delays to changing the programme governance, and continuing uncertainty, could lead to a loss of vital capability from within the Sponsor Body and …

Government response. The government's response outlines future programme milestones for presenting a strategic case and developing costed proposals but does not address the committee's specific observations regarding challenges in staff transition, loss of leadership, and difficulties in recruiting to key roles within …
HM Treasury
14 Conclusion Fifty-Second Report - Restoration &… Accepted

Presenting a strategic case to Parliament by year-end is critical for programme momentum.

The Clerk of the Commons told us he felt that the governance was in as good a place as it could be, but recognised that this is a critical year for the programme. Managing the risks to the timetable will be vital to maintain the programme’s momentum,34 and the next …

Government response. The government agrees it is critical to present a strategic case for the R&R programme this year, confirming it will be presented to both Houses by December 2023. It notes further detailed proposals will follow, with timing for a decision …
HM Treasury
15 Conclusion Fifty-Second Report - Restoration &… Accepted

Critical uncertainties persist, making the programme complex and impacting value for money risks.

In 2020 we highlighted how the Programme is made ever-more complex by the number of uncertainties which underpin it, including the condition of the building, interdependencies with other parliamentary building projects, the lack of consensus over where Parliamentarians and staff will relocate to while the work is undertaken, and what …

Government response. The government agrees with the committee's findings on ongoing uncertainties and commits that the R&R Client team will present cost and time estimates in ranges within the strategic case and costed proposal, with the first due in Autumn 2023.
HM Treasury
16 Conclusion Fifty-Second Report - Restoration &… Accepted

Programme costs are predominantly determined by timescale and essential safety-critical works.

The Programme SRO outlined how, given the uncertainties, the Delivery Authority had worked up 30 options to help provide the evidence needed for decision-making. This analysis showed that how the programme was conducted, and on what timescale, had a much greater impact on the cost than scope decisions. Also, approximately …

Government response. The government agrees with the committee's observations and confirms that the R&R Client team will present cost and time estimates in ranges as part of the strategic case and costed proposal, due for consideration in Autumn 2023.
HM Treasury
17 Conclusion Fifty-Second Report - Restoration &… Accepted

Uncertainty regarding programme scope, with political decision-making identified as the top risk.

The scope of the work, in terms of what a restored Palace would look like and how work would be undertaken, remains uncertain. We asked the Programme SRO about the risk of Parliament being unable to decide how to reduce the programme scope by the end of 2023. She told …

Government response. The government acknowledges the uncertainty in the work's scope and confirms that the R&R Client team will present cost and time estimates in ranges within the strategic case and costed proposal, with the first due for consideration in Autumn 2023, …
HM Treasury
18 Conclusion Fifty-Second Report - Restoration &… Accepted

Unrealistic parliamentary resolutions necessitate unavoidable trade-offs between cost, accessibility, and sustainability goals.

The Clerk of the House of Commons told us that resolutions passed by Parliament were unrealistic. There will be unavoidable trade-offs between cost, accessibility and sustainability. For example, the Commissions set out health and safety as their primary commitment but to meet sustainability expectations there will be additional costs and …

Government response. The R&R Client team commits to presenting cost and time estimates in ranges in the strategic case and costed proposal, due to be considered by the Programme Board and Client Board in Autumn 2023.
HM Treasury
19 Conclusion Fifty-Second Report - Restoration &… Accepted

Intrusive surveys reveal ongoing issues, making accurate programme cost forecasting impossible.

The Delivery Authority continues to undertake intrusive surveys to understand as much as possible prior about the Palace before carrying out works. It has compiled over 1,750 technical reports on different aspects of the building. We were told that these will not finish prior to work commencing and that issues …

Government response. Acknowledging the uncertainties in cost estimates, the R&R Client team commits to presenting cost and time ranges in the strategic case and costed proposal, with the first due for consideration in Autumn 2023.
HM Treasury
20 Conclusion Fifty-Second Report - Restoration &… Acknowledged

£270 million spent, with a pilot project planned to address uncertainties and engage public.

To date, the Delivery Authority has spent £270 million, with much of this on developing the previous schemes and preparing the business case prior to the programme being paused in 2022. It is now developing a wider range of options for how restoration and renewal will be undertaken.48 In response …

Government response. The government acknowledges the work on a potential R&R pilot, stating that principles have been agreed and potential projects are being developed and assessed for consideration by the Client Board in the autumn.
HM Treasury
21 Conclusion Fifty-Second Report - Restoration &… Accepted

Transparency offers significant benefits for accountability, public engagement, and confidence in major programmes.

This Committee has often set out the significant benefits of transparency for supporting accountability over decision-making, alongside updating and engaging Parliament and the public on progress across critical major programmes. Transparency will also be critical for Parliament and the public to gain confidence in a programme and its leadership, as …

Government response. The government agrees on the importance of transparency and details ongoing efforts, including the upcoming annual progress report, regular quarterly reports, published meeting agendas/minutes, and the publication of Independent Advice and Assurance Panel reports.
HM Treasury
22 Conclusion Fifty-Second Report - Restoration &… Accepted

Programme should exemplify transparency by regularly reporting progress and welcoming scrutiny.

In our 2021 report drawing together lessons from numerous programmes we specifically highlighted the importance of Parliament’s own restoration and renewal programme being an exemplar of an open and transparent programme which welcomes scrutiny.50 The Delivery Authority Chief Executive commented that “Transparency in reporting is a very powerful and important …

Government response. The Clerks and Client Team agree with the committee's observation on transparency and confirm that commitments for regular reporting are being fulfilled, including annual and quarterly progress reports, published meeting minutes, and Independent Advice and Assurance Panel reports.
HM Treasury
23 Recommendation Fifty-Second Report - Restoration &… Accepted

Public support for Palace restoration high but faces challenges from rising costs.

The Clerk of the House of Commons described how restoration and renewal of the Palace would be a ‘hard sell’ to the public. Prior to the reset of the programme, the Sponsor Body estimated that works would cost between £7 billion to £13 billion if the Palace decanted, lasting between …

Government response. The government agrees with the need for public engagement and confirms that a comprehensive engagement plan is in place for 2023, including a separate plan specifically addressing external engagement to properly inform the public.
HM Treasury
24 Conclusion Fifty-Second Report - Restoration &… Accepted

Achieving parliamentary consensus on Palace restoration direction remains a significant risk.

Members of both Houses play a critical role in approving the forward direction of the programme. Back in 2020, we highlighted the challenges in building consensus across parliamentarians, which continues to be a significant risk.56 The Clerk of the House of 50 Committee of Public Accounts, Thirty-ninth Report of Session …

Government response. The government agrees with the committee's observation on the importance of Member consensus and outlines a comprehensive plan for internal engagement, including direct communications, focus groups, party group engagement, and an information hub, to address this challenge.
HM Treasury
25 Conclusion Fifty-Second Report - Restoration &… Accepted

Parliamentary engagement on Palace restoration has been insufficient, requiring new approach.

In terms of parliamentary engagement, the Programme SRO identified this as an area where the Sponsor Body had previously not done enough.58 In October 2022, the newly established Client Board acknowledged that engagement had not been sufficient, with a new approach and greater collaboration needed.59 This was also recognised by …

Government response. The government agrees with the committee's observation on past insufficient parliamentary engagement and outlines a new, prioritized approach with senior resources and a comprehensive internal engagement plan with Members.
HM Treasury
26 Conclusion Fifty-Second Report - Restoration &… Accepted

Inconsistent senior political support caused significant changes and pauses in the restoration programme.

We have previously seen the importance of getting senior political stakeholders on side. We reported that in February 2021, upon considering findings from a strategic review, the Commissions agreed the Sponsor Body could spend up to £5 million to carry out further work to fully understand the costs, time and …

Government response. The Clerks and Client Team agree on the importance of engagement with political stakeholders and detail a comprehensive plan of ongoing engagement activities with Members, committees, and party groups through various channels.
HM Treasury
27 Conclusion Fifty-Second Report - Restoration &… Accepted

Improving parliamentary engagement is crucial for achieving the ambitious restoration timetable.

The Programme SRO recognises that to achieve the ambitious timetable, the R&R Client Team will need to improve its parliamentary engagement.63 The Programme SRO and Delivery Authority Chief Executive envisage that recent governance changes will lead to more political ownership, and therefore engagement, across Parliament as decision- makers including the …

Government response. The government agrees with the importance of Member engagement, detailing a comprehensive engagement plan for the remainder of 2023, including regular internal engagement, direct alerts to Members, and an information hub, leading up to the strategic case vote.
HM Treasury
28 Conclusion Fifty-Second Report - Restoration &… Acknowledged

Insufficient information on costs and decant options hinders Parliament's strategic decisions.

In 2020, the NAO reported that to reduce the likelihood of previous decisions being reopened, decisions should be based on the best available evidence, be transparent and make clear the cost and timing implications of alternatives.67 We challenged the witnesses on the extent and depth of information that would be …

Government response. The government acknowledges the committee's concern regarding information sufficiency, detailing ongoing efforts such as quarterly reports, published meeting minutes, an information hub, and a comprehensive engagement plan to keep Members informed leading up to strategic decisions.
HM Treasury
29 Conclusion Fifty-Second Report - Restoration &… Accepted

Corporate Officers of both Houses now hold overall responsibility for building works.

On 1 January 2023, the Parliamentary Works Sponsor Body (Abolition) regulations 2022 came into effect. These set out that the Corporate Officers of the Houses would, acting jointly, “have overall responsibility for the Parliamentary building works.”71 The Sponsor Body’s previous responsibilities, as set out in previous legislation, will also be …

Government response. The Corporate Officers acknowledge their new overall legal responsibility for the building works under the Act, and detail the mechanisms they will use, such as formally recording disagreements, to manage their duties, especially in the event of significant concerns.
HM Treasury
30 Conclusion Fifty-Second Report - Restoration &… Accepted

Clerks face challenges balancing programme accountabilities with Corporate Officer responsibilities.

When we last reported on restoration and renewal in June 2022, we were concerned that the Clerks may have felt constrained in sharing their professional views, as accounting officers, on what the restoration and renewal programme could deliver.74 In addition, the Clerks will need to balance their accountabilities to the …

Government response. The Clerks acknowledge their legal and statutory responsibilities, including fire safety, and state they would formally record disagreements or object to proposed actions on grounds of propriety, value for money, or feasibility, ensuring their professional views are not constrained.
HM Treasury
31 Conclusion Fifty-Second Report - Restoration &… Accepted

Clerks could face untenable positions if asked to implement unwise or unsafe decisions.

The Clerks recognise the significance of the responsibilities they now hold and the complexities they face when fulfilling and balancing these respective responsibilities. 67 C&AG’s report, Palace of Westminster Restoration and Renewal Programme, HC 315, Session 2019–2021, 24 April 2020 68 Q 60 69 Qq 60–63, 115 70 Qq 115 …

Government response. The Clerks acknowledge their significant responsibilities and state they would record disagreements in formal minutes or correspondence if asked to undertake unwise or high-risk works. They also confirm they would not support construction presenting unmitigated risk.
HM Treasury
32 Conclusion Fifty-Second Report - Restoration &… Accepted in Part

No formal process exists for Clerks to challenge misaligned restoration programme decisions.

There is currently no formal process in place should the Clerks be requested to do something they felt did not align with their respective responsibilities. For example, the Clerks cannot overrule the restoration and renewal Client Board or the Programme Board, but retain accountability for any decisions taken (whether or …

Government response. The Clerks agree with the conclusion, noting existing limited processes for disagreement and stating that in significant disagreements concerning the R&R works, they would formally record their disagreement in Board minutes and correspondence, rather than implementing a ministerial direction equivalent.
HM Treasury
33 Conclusion Fifty-Second Report - Restoration &… Accepted in Part

Unclear procedure for Clerks to record abuse and override decisions.

The Clerk of the House of Commons suggested that where there was a real abuse of procedure, there would be value to him being able to put this on record through placing a letter in the Library. He mentioned how the Speaker of the Commons recognised the value of introducing …

Government response. The government clarifies that an equivalent of a ministerial direction for Corporate Officers would be of limited value, but states they would record significant disagreements in formal Board minutes and correspondence for both Houses.
HM Treasury
34 Conclusion Fifty-Second Report - Restoration &… Not Addressed

Clerks' capacity and expertise for large projects remain concerning, amidst leadership changes.

We have previously expressed concern that the Clerks do not have the expertise or the capacity to successfully oversee a large infrastructure project of this cost and complexity. Their previous experience overseeing work on, for example, Elizabeth Tower shows how challenging this can be, with renovation set to cost £86 …

Government response. The response repeats the committee's concern that the Clerks do not have the expertise or the capacity to successfully oversee a large infrastructure project, but does not offer a response or action.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
2 Feb 2023 David Goldstone CBE · Palace of Westminster Restoration and Renewal Delivery Authority, Dr John Benger · House of Commons, Dr Patsy Richards · Restoration and Renewal Client Team, Simon Burton · House of Lords View ↗

Correspondence

4 letters
DateDirectionTitle
6 Mar 2023 Joint correspondence from the House of Commons and House of Lords, dated 27 Feb…
2 Feb 2023 Sir John Benger KCB, Clerk, House at House of Common, re Asbestos update, dated…
2 Feb 2023 Joint correspondence from Sir John Benger KCB, Clerk, House at House of Common,…
16 Jan 2023 Correspondence from John Benger, Clerk of the House, Palace of Westminster, re …