Recommendations & Conclusions
10 items
3
Conclusion
29th Report - Condition of Government p…
Accepted
Many departments’ property plans lack the information necessary to manage and maintain their portfolios. Departments are required to prepare Strategic Asset Management Plans (SAMPs) to consider the totality of their assets and document their planned approach to managing maintenance and disposals in the longer term, including documenting any property risks …
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Many departments’ property plans lack the information necessary to manage and maintain their portfolios. Departments are required to prepare Strategic Asset Management Plans (SAMPs) to consider the totality of their assets and document their planned approach to managing maintenance and disposals in the longer term, including documenting any property risks and how they plan to manage and mitigate them. Departments’ SAMPs are currently of varying quality, and different levels of maturity. The Ministry of Defence needs to urgently create a long–term strategic plan to redevelop the service personnel housing estate as part of its SAMP. Departments are also expected to include data from their arm’s–length bodies (ALBs) in individual SAMPs, unless the ALB prepares a separate SAMP. Departments do not have sufficient oversight of some ALBs with large property portfolios and their information does not feed sufficiently into departmental SAMPs. The OGP requires ALBs that have a particular property focus to prepare their own SAMP, for example Homes England and the Government Property Agency. recommendation a. Cabinet Office should perform a regular assessment on the quality of the SAMPs of organisations with major property portfolios and explain what further actions it is taking to improve the quality and coverage of departmental SAMPs. b. The Ministry of Defence should report to the Committee its plan for redeveloping its housing estate and include long–term plans in the departmental SAMP. The plan should also include details on proposed disposals, redevelopment and maintenance.
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Government response AI summary
The government agrees with the recommendation, reporting that the Defence Housing Strategy Review (DHSR) is planned for publication later this year. This review will set out a roadmap for renewing Service Family Accommodation, identify surplus land, and inform a comprehensive Strategic Asset Management Plan, directly …
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HM Treasury
4
Conclusion
29th Report - Condition of Government p…
Accepted
Short–term funding for property maintenance is hindering longer–term planning. Departments typically bid for property maintenance funding on a yearly basis. This short–term funding cycle can be inefficient as it hinders departments’ ability to plan longer–term maintenance works. The contracting phase may take a long time and this can mean that …
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Short–term funding for property maintenance is hindering longer–term planning. Departments typically bid for property maintenance funding on a yearly basis. This short–term funding cycle can be inefficient as it hinders departments’ ability to plan longer–term maintenance works. The contracting phase may take a long time and this can mean that property maintenance works may, for example, be concentrated close to the year end to avoid losing funding, despite likely less favourable weather conditions. HM Treasury is responsible for assessing departments’ bids for maintenance funding. The quality of these bids is variable and there is little clarity on whether departments consider alternatives to maintenance, such as whether moving to a new building would be better value for money in the long–term. The OGP is supporting departments through provision of guidance and tools on preparing maintenance bids, and supports HM Treasury with assessing the bids. Officials in the OGP also regularly engage with departments and ALBs on disposals. We specifically raised concerns about the delays in the disposal of the properties acquired 6 for the abandoned High Speed 2 extension. Not all departments and ALBs make use of what the OGP offers and the OGP does not currently mandate the use of any of its tools. The government has set out plans for longer– term, five–year, capital funding cycles, which should help departments’ plan better. recommendation a. The Cabinet Office should, in light of Spending Review 2025 and no later than October 2025, write to the Committee to update it on what has changed to support the longer–term planning of property maintenance. b. HM Treasury should mandate that business cases for maintenance funding consider the consequences of disposal and building new in addition to maintaining existing properties.
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Government response AI summary
The government states the recommendation is implemented, explaining that The Green Book already mandates that business cases for maintenance funding must include a full range of options, including disposing of existing assets and building new properties, in addition to maintaining existing ones.
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HM Treasury
5
Recommendation
29th Report - Condition of Government p…
Accepted
Many departments and arm’s length bodies do not have the skills and capabilities to manage their property portfolio effectively. There is a shortage of skilled property professionals across departments. Departments are finding it difficult to recruit and retain property professionals. The lack of capacity and capability in departments impacts their …
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Many departments and arm’s length bodies do not have the skills and capabilities to manage their property portfolio effectively. There is a shortage of skilled property professionals across departments. Departments are finding it difficult to recruit and retain property professionals. The lack of capacity and capability in departments impacts their ability to maintain properties effectively, including both carrying out the work required and managing contractors. Government has recently made progress in recruiting and training staff, for example by initiating 302 new property apprenticeships and 61 new graduates recruited for property roles by September 2024. We understand that the government property function has the lowest proportion of women working in it of any of the government functions; an issue acknowledged by the Cabinet Office and which it says it is trying to address. We are also concerned that it may be very challenging to maintain existing property professional staff numbers across government, and certainly to recruit more, in the context of trying to reduce civil service expenditure. The Cabinet Office has itself announced recently that it intends to reduce its staff numbers by nearly a third. recommendation As part of its of strategic workforce planning review, the Cabinet Office should set out the reasons for difficulties recruiting and retaining property professionals and its plans to improve skills and diversity of property professionals across government.
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Government response AI summary
The government agrees and will produce a strategic capability plan for the property profession during financial year 2025-26, which will identify skills shortages and inform work to improve skills and diversity.
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HM Treasury
6
Conclusion
29th Report - Condition of Government p…
Accepted
The Cabinet Office’s oversight of government property risks being ineffective due to duplication of roles. The OGP is responsible for the overall strategy for non–office property across government, whereas the Government Property Agency (GPA) is responsible for office related strategy. 7 The OGP sits within the Cabinet Office and the …
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The Cabinet Office’s oversight of government property risks being ineffective due to duplication of roles. The OGP is responsible for the overall strategy for non–office property across government, whereas the Government Property Agency (GPA) is responsible for office related strategy. 7 The OGP sits within the Cabinet Office and the GPA is one of the Cabinet Office’s Executive Agencies, and we are not convinced of the need for two separate organisations, given both sit within the Cabinet Office departmental group. The new National Infrastructure and Service Transformation Authority, responsible for infrastructure strategy, jointly reports to the Cabinet Office and HM Treasury. Strategy implementation and operational management are split across departments and their ALBs. For example, NHS Property Services is responsible for the primary care estate (initial points of contact for patients, such as GP practices, pharmacies and dental clinics), while currently NHS England is responsible for the secondary care estate (for example, hospitals and specialist clinics). The existence of these various organisations across government risks duplication of effort and inefficiencies. Additionally, while the OGP has responsibility for overseeing property strategy, it does not have the levers to support improvements, which raises the concern that it cannot gain sufficient traction. The Cabinet Office says it is carrying out a review of its structure to remove duplication and inefficiency. recommendation The Cabinet Office should write to the Committee, as soon as practicable, to provide an update on its review of the effectiveness of its oversight of government property. The update should include any actions it is taking to strip out duplicate roles, and give specific consideration to the need for two property organisations within the Cabinet Office departmental group. 8 1 The property maintenance backlog and its impact Introduction
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Government response AI summary
The government agrees and states that a review of the Government Property Agency (GPA) is underway, and the Cabinet Office will write to the Committee with the outcome and how it addresses duplication concerns.
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HM Treasury
1
Conclusion
29th Report - Condition of Government p…
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from Cabinet Office and the Defence Infrastructure Organisation (DIO) on the condition of government property.1
Government response AI summary
The government states the 'recommendation' is implemented and describes existing Consolidated Budgeting Guidance and flexibilities for departments to manage and roll over capital budgets.
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HM Treasury
7
Recommendation
29th Report - Condition of Government p…
Accepted
There is no standard definition for the calculation of the total maintenance backlog across government. Government organisations include different costs in their individual calculations. The lack of consistent and complete data impacts government’s ability to make well–informed, strategic choices in the prioritisation of funding.9 We questioned whether departments are complying …
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There is no standard definition for the calculation of the total maintenance backlog across government. Government organisations include different costs in their individual calculations. The lack of consistent and complete data impacts government’s ability to make well–informed, strategic choices in the prioritisation of funding.9 We questioned whether departments are complying with the OGP’s data collection standards. The OGP told us that while departments are increasingly co–operating, data quality varies across government.10 In response, the Cabinet Office has stated that it plans to release a common definition and calculation methodology for the government’s maintenance backlog in the second quarter of the financial year 2025–26.11 4 C&AG’s Report, paras 3, 11, 1.12 5 C&AG’s Report, paras 2.2, 2.3, 2.6 6 C&AG’s Report, para 1.13 7 C&AG’s Report, para 2.7 8 Qq 7, 28 9 C&AG’s Report, paras 2.4, 2.5 10 Q 14 11 Letter from the Cabinet Office, dated 11 April 2025 10
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Government response AI summary
The Cabinet Office has written to the Committee alongside the Treasury Minute response to provide an update on mandating a standard definition of backlog, Insite implementation, and departmental compliance.
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HM Treasury
8
Recommendation
29th Report - Condition of Government p…
Accepted
The Cabinet Office aims to improve data consistency through its new InSite programme, enabling the implementation of the government property data standard across the central government property portfolio.12 It told us that the Insite was going live and would be fully functional on 1 April 2025, the day after we …
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The Cabinet Office aims to improve data consistency through its new InSite programme, enabling the implementation of the government property data standard across the central government property portfolio.12 It told us that the Insite was going live and would be fully functional on 1 April 2025, the day after we took evidence.13 Poor condition of property affecting public services
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Government response AI summary
The Cabinet Office has written to the Committee alongside the Treasury Minute response with updates on data standardisation and Insite implementation.
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HM Treasury
15
Recommendation
29th Report - Condition of Government p…
Accepted
We raised concerns about the Ministry of Defence housing estate.26 The Chief Executive of the DIO told us that the Ministry is undertaking a review of the housing estate in order to address poor condition. As part of the review, it is considering maintenance, private funding, disposals and redevelopment.27 Prioritising …
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We raised concerns about the Ministry of Defence housing estate.26 The Chief Executive of the DIO told us that the Ministry is undertaking a review of the housing estate in order to address poor condition. As part of the review, it is considering maintenance, private funding, disposals and redevelopment.27 Prioritising this review will be important for addressing ongoing wider recruitment and retention issues in the Ministry of Defence. 20 Q 21 21 Q 58 22 C&AG’s Report, para 1.10 23 C&AG’s Report, para 1.10 24 Q 30 25 Q 13 26 Q 84 27 Q 86 12
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Government response AI summary
The Ministry of Defence will report to the Committee its plan for redeveloping its housing estate, including long-term plans in the departmental SAMP, disposals, redevelopment and maintenance, target implementation date Autumn 2025.
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HM Treasury
25
Recommendation
29th Report - Condition of Government p…
Accepted
The OGP sets the overall strategic direction for the management of government property overall, split across 15 portfolios.49 The OGP told us that the Government Property Agency (GPA), which is an executive agency of Cabinet Office, sets and delivers the strategy for the office portfolio, representing about 2% of the …
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The OGP sets the overall strategic direction for the management of government property overall, split across 15 portfolios.49 The OGP told us that the Government Property Agency (GPA), which is an executive agency of Cabinet Office, sets and delivers the strategy for the office portfolio, representing about 2% of the whole estate.50 A new body, the National Infrastructure and Service Transformation Authority, has been established to oversee the infrastructure strategy.51 We asked the Cabinet Office whether 45 Q 78; C&AG’s Report, para 18 46 Qq 74–75 47 Q 79 48 Q 73 49 C&AG’s Report, para 4 50 Qq 2–3 51 C&AG’s Report, para 3.18 16 the OGP and GPA should be merged to avoid overlap. It responded that the Cabinet Office is undertaking a review of its structures, and intends to strip out duplication and inefficiency.52
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Government response AI summary
The Cabinet Office will write to the Committee with the outcome of the review of the Government Property Agency (GPA), including how it addresses the concerns of duplication, clarifying that the review is not in relation to oversight of all government property.
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HM Treasury
26
Conclusion
29th Report - Condition of Government p…
Accepted
The Cabinet Office has attempted to improve oversight of departments’ management of property, and to increase the guidance available to assist them. It did this through the Better Buildings Programme, launched in 2022, which aimed to share best practice and to establish a consistent backlog calculation methodology across departments. However, …
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The Cabinet Office has attempted to improve oversight of departments’ management of property, and to increase the guidance available to assist them. It did this through the Better Buildings Programme, launched in 2022, which aimed to share best practice and to establish a consistent backlog calculation methodology across departments. However, the NAO report noted that the OGP lacked sufficient leverage to encourage change in departments.53
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Government response AI summary
The government agrees with the committee's finding and states that a review of the Government Property Agency (GPA) is currently underway to address concerns about leverage and duplication, with a target implementation date of Winter 2025.
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HM Treasury