Select Committee · Public Accounts Committee

Condition of Government properties

Status: Closed Opened: 15 Jan 2025 Closed: 21 Aug 2025 6 recommendations 22 conclusions 1 report

The Government owns and manages all kinds of property for the delivery of public services and to support its own operations – from hospitals, schools and prisons, to courts, museums, warehouses and more. The estate overall is valued at around £187.1bn, as of March 2023, with annual running costs of £22bn. Ministry of Defence and …

Clear

Reports

1 report
Title HC No. Published Items Response
29th Report - Condition of Government property HC 641 11 Jun 2025 28 Responded

Recommendations & Conclusions

13 items
13 Conclusion 29th Report - Condition of Government p… Not Addressed

Departments must prepare Strategic Asset Management Plans for long-term estate maintenance and risk management.

Departments are required to prepare Strategic Asset Management Plans (SAMPs) to document their approach to the maintenance of their estates, as well as the management of risks. SAMPs provide an opportunity for departments to consider the totality of their assets and plan how to manage maintenance and disposals in the …

Government response. The response refers to the poor condition of some property and the failure to maintain it affecting key public services, but doesn't address the use of Strategic Asset Management Plans (SAMPs).
HM Treasury
14 Conclusion 29th Report - Condition of Government p… Not Addressed

Departments inconsistently produce comprehensive Strategic Asset Management Plans despite their mandatory importance.

While SAMPs are mandatory and of high strategic importance, not all departments prepare comprehensive plans.23 The OGP is asking departments for a more forward–looking approach in their plans, including consideration of future risks.24 The Cabinet Office explained that almost all departments have now either produced a SAMP, or have plans …

Government response. The response addresses a different PAC conclusion regarding property conditions, not the conclusion about SAMPs.
HM Treasury
16 Conclusion 29th Report - Condition of Government p… Not Addressed

Departments are responsible for including Arm's Length Body properties within their Strategic Asset Management Plans.

Responsibilities for property management vary across departments. Some manage the property of their ALBs, which includes acquisitions, disposals, maintenance, improvement works and facilities management. Others delegate management responsibilities to their ALBs.28 We questioned the OGP as to how much knowledge it had of ALBs’s property management plans, to which it …

Government response. The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about property management responsibilities.
HM Treasury
17 Conclusion 29th Report - Condition of Government p… Not Addressed

OGP confirms Strategic Asset Management Plans are improving and cover the whole property portfolio.

We followed up on whether the OGP knows if departments are preparing comprehensive SAMPs that cover ALBs. It assured us that it carried out a review on SAMPs to ensure that they were covering the whole property portfolio. The OGP also noted that SAMPs were on a journey of improvement …

Government response. The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about SAMPs.
HM Treasury
18 Conclusion 29th Report - Condition of Government p… Not Addressed

Annual budget cycles drive short-term planning, hindering efficient property asset management

Government organisations operate with annual maintenance budgets. Transferring unspent funds to the following year is often not easy and requires HM Treasury’s permission. Departments respond to annual budgets by planning on a yearly basis. They may split contracts into smaller chunks, rather than longer, better value contracts. This allows departments …

Government response. The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address annual maintenance budgets and the difficulties of transferring unspent funds.
HM Treasury
19 Conclusion 29th Report - Condition of Government p… Not Addressed

Annual budgets challenging for long-term asset management, but Treasury plans multi-year strategies

We challenged the Cabinet Office as to whether this is a good way for government to operate, or whether a longer–term funding settlement would encourage better practice. The Cabinet Office replied that annual budgets are common. It also noted that the Spending Review 2025 will be multi–year. The DIO agreed …

Government response. The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address whether a longer-term funding settlement would encourage better practice.
HM Treasury
20 Conclusion 29th Report - Condition of Government p… Not Addressed

Departments face disincentives and cultural attachment, hindering disposal of old properties

Departments may reduce their maintenance cost and backlog by disposing of existing properties that they no longer need. However, they may decide not to move because the proceeds from the sale of an old building would 31 C&AG’s Report, para 3.14 32 Q 35 33 C&AG’s Report, para 3.14 34 …

Government response. The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address the disposal of existing properties that departments no longer need.
HM Treasury
21 Conclusion 29th Report - Condition of Government p… Not Addressed

Shortage of skilled property management professionals persists, despite recruitment and training efforts

There is a shortage of skilled property management professionals across departments. If the perceived value of working in the public sector property profession has declined, or levels of pay are no longer considered attractive, his would be a matter of concern for the long term health of the profession. The …

Government response. The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively but doesn't address the shortage of skilled property management professionals across departments.
HM Treasury
23 Conclusion 29th Report - Condition of Government p… Not Addressed

Government Property Function has lowest proportion of females, requiring active diversity promotion

The OGP told us that the Government Property Function has the lowest proportion of females compared to all other functions. We asked the OGP how it plans to recruit and retain more female property professionals. The OGP told us that it has a successful governance group, the Property Leaders Group, …

Government response. The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively, but doesn't address the proportion of females in the Government Property Function.
HM Treasury
24 Conclusion 29th Report - Condition of Government p… Not Addressed

Civil Service cost reductions impact property professionals, despite specialist pay frameworks

We questioned the Cabinet Office about how the planned cost reductions in the Civil Service will impact the number of property professional staff. It explained that there will not be any broad exemptions, including for property professionals, and that the Cabinet Office will look at consultants, contingent labour and cost …

Government response. The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively and doesn't address planned cost reductions in the Civil Service and their impact on property professional staff.
HM Treasury
26 Conclusion 29th Report - Condition of Government p…

OGP's Better Buildings Programme lacks sufficient leverage to drive change in departments

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, …

HM Treasury
27 Conclusion 29th Report - Condition of Government p…

Dispersed property management responsibilities across departments and ALBs create varied approaches

Responsibilities for property management vary across departments. Some manage their property directly, and others delegate this to ALBs. The Department for Education is not legally responsible for the maintenance of the school estate, though it does provide funding, with other responsible bodies (depending on the type of school) having legal …

HM Treasury
28 Conclusion 29th Report - Condition of Government p…

ALBs lack awareness of OGP guidance, highlighting need for improved direct communication

We asked the OGP about ALB’s lack of awareness of the OGP’s guidance, to which it agreed it needed to do more, calling the NAO report a wake–up call to engage more with stakeholders.56 After further challenge on whether it is the responsibility of departments to pass on tools from …

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
31 Mar 2025 Cat Little · Cabinet Office, Mark Chivers · Cabinet Office, Mike Green · Defence Infrastructure Organisation View ↗

Correspondence

2 letters
DateDirectionTitle
4 Sep 2025 To cttee Letter from the Civil Service Chief Operating Officer and Cabinet Office Perman…
24 Apr 2025 To cttee Letter from the Civil Service Chief Operating Officer and Permanent Secretary o…