Recommendations & Conclusions
16 items
3
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
FCDO’s central estate function does not have adequate oversight of estate activities, both at overseas posts and across its project portfolio. Eighty-four percent of overseas posts have responsibility for maintaining their own estate, either through in-house teams or local contractors, with support from the FCDO central estate function in Whitehall. …
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FCDO’s central estate function does not have adequate oversight of estate activities, both at overseas posts and across its project portfolio. Eighty-four percent of overseas posts have responsibility for maintaining their own estate, either through in-house teams or local contractors, with support from the FCDO central estate function in Whitehall. These posts have responsibility for managing their local budgets and can choose what they spend on maintenance, but are not always aware of their estate responsibilities, such as the need to carry out preventative maintenance. As we have highlighted before, most recently in our June 2025 report, Condition of Government property, failure to carry out preventative maintenance is poor value for money as it can mean more expensive emergency works are required later. FCDO plans to publish in October 3 2025 a revised maintenance strategy which will give clearer guidance to posts on their maintenance responsibilities, based on learning drawn from its outsourced facilities management contracts. The central estate function is not able to monitor posts’ maintenance spending and does not have adequate oversight of its project portfolio. FCDO plans to establish a new estates governance board in the autumn, with the aim of bringing together issues of spending, policy, projects and programmes. recommendation FCDO should implement its plans to improve its governance model, including establishing a new estates governance board and publishing a new maintenance strategy for posts. FCDO should update the Committee in its Treasury Minute response on its progress in improving central oversight of its overseas estate.
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Government response AI summary
The government has established a new Estates Committee in October 2025 to strategically review estate operations and investments, meeting quarterly, and is widening the remit of the Asset Management Portfolio Board. Additionally, an external review of the departmental operating model and project delivery function has …
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HM Treasury
4
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
FCDO does not have all the data it needs to manage its estate effectively. FCDO has developed its central IT systems separately and they are not integrated with each other, or with systems at overseas posts. Overseas posts are responsible for collecting their own estate data, such as on building …
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FCDO does not have all the data it needs to manage its estate effectively. FCDO has developed its central IT systems separately and they are not integrated with each other, or with systems at overseas posts. Overseas posts are responsible for collecting their own estate data, such as on building size and condition, but do not always have the resources or skills to do so. In 2023, FCDO reported that 85% of posts did not have a complete register of their estate assets. In 2023, FCDO recognised its £150 million estimate of its maintenance backlog was probably too low and commissioned surveys which found that the true backlog was actually £450 million. This was a one-off exercise, but FCDO has since trained 1,500 staff to improve data collection. Even if more data is collected, however, FCDO is currently unable to bring it together to give it an organisational view as data is spread out across different systems, individual spreadsheets and paper files. FCDO accepts that its digital systems are not up to scratch and require a thorough overhaul. FCDO is currently moving all of its estate data to a new integrated management system, but this will not be complete until 2028. recommendation Alongside its Treasury Minute response, FCDO should write to the Committee setting out the progress it has made: • ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that is updated regularly; • implementing its integrated data management system; and 4 • to ensure that it is using the latest digital technology to monitor and manage its estate, including actions it is taking related to this.
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Government response AI summary
The government agrees with the recommendation and states that it has implemented it by writing to the Committee alongside the Treasury Minute publication to set out the requested progress.
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HM Treasury
5
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
Some FCDO high-profile estate projects have run significantly over time and budget. FCDO carries out large scale estate capital projects to refurbish or replace its buildings, but some recent projects, such as in Washington D.C. and Ottawa, have run significantly over time and budget. This has been due to issues …
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Some FCDO high-profile estate projects have run significantly over time and budget. FCDO carries out large scale estate capital projects to refurbish or replace its buildings, but some recent projects, such as in Washington D.C. and Ottawa, have run significantly over time and budget. This has been due to issues such as industrial action, unexpected problems in buildings requiring remediation and the impact of COVID-19. FCDO conducts lessons learned activities for all its projects but has stopped recording them centrally as its portfolio management office prioritised other work. FCDO plans to deliver around 120 capital projects in future and has confirmed that central collation of lessons learned activity will restart soon. FCDO is also taking other actions to improve its project management, including introducing a design authority with the responsibility for checking project designs and implementing gateway reviews to improve external scrutiny of projects as they are developed. recommendation FCDO should immediately restart centrally collecting and analysing lessons learned from its estate capital projects, to ensure it has appropriate oversight of project risks and can manage delivery effectively. FCDO should update the Committee in its Treasury Minute response on its progress, including the impact of its new design authority and gateway review processes.
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Government response AI summary
The FCDO is re-establishing a comprehensive, centrally collated lessons-learned process for capital projects, with findings to be shared across teams. Its new Design Authority will embed these lessons into project designs, and strengthened gateway reviews will scrutinize cost, procurement, and design at key RIBA stages.
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HM Treasury
6
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
FCDO’s ability to manage its estate is hampered by a lack of staff with the necessary skills and experience. Larger FCDO posts can have dedicated estate managers and teams, but smaller posts do not always have estate specialists on site. The NAO’s survey of posts found that 65% of respondents …
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FCDO’s ability to manage its estate is hampered by a lack of staff with the necessary skills and experience. Larger FCDO posts can have dedicated estate managers and teams, but smaller posts do not always have estate specialists on site. The NAO’s survey of posts found that 65% of respondents reported a lack of staff and other resources for estate management and 44% a lack of relevant training, skills and experience. FCDO’s central estate function provides posts with detailed guidance and deploys around 75 technical experts, based regionally, that also provide guidance and services to posts. It also commissions a specialist service to carry out annual inspections of high-risk systems including gas and electrics. However, FCDO acknowledges it does not have all the staff and capabilities needed at posts. FCDO does not have a workforce strategy that identifies the resources and skills it needs to manage its estate and set out how it will address any gaps. FCDO is developing an estate workforce strategy to set out what resources and skills are necessary at individual posts (including the appropriate mix of internal training and external recruitment), what expertise can be deployed at a regional level and what is required centrally to provide support and advice. 5 recommendation FCDO should complete its estate workforce strategy, which should set out: • the staff and skills it needs and where they should be best located; • the staff and skills it currently has; and • a delivery plan explaining how it will close any gaps found by for example, training existing staff, moving staff or external recruitment. FCDO should update the Committee on this alongside its Treasury Minute response. 6 1 FCDO’s estate strategy Introduction
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Government response AI summary
The FCDO has completed its estate workforce strategy and has informed the Committee of its implementation alongside the publication of the Treasury Minute.
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HM Treasury
1
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Foreign, Commonwealth and Development Office (FCDO) on the costs of maintaining its overseas estate.1
Government response AI summary
The government states that this conclusion has been implemented and that the FCDO has written to the Committee alongside the publication of the Treasury Minute.
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HM Treasury
12
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
FCDO told us the capital increase was valuable and gives it a chance to sort out its estate, but it does not by itself get it out of the danger zone and its estate remains a severe risk to its organisation.29 FCDO told us that it would still be operating …
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FCDO told us the capital increase was valuable and gives it a chance to sort out its estate, but it does not by itself get it out of the danger zone and its estate remains a severe risk to its organisation.29 FCDO told us that it would still be operating in a resource-constrained environment and that its 2025 Spending Review settlement also requires it to make 5% efficiency savings annually. FCDO told us that it is therefore taking a strategic look to identify where it can consolidate its estate and has developed two different prioritisation mechanisms for its resource and capital funding, to ensure funds are invested where they will have the greatest impact.30 FCDO also told us that it is determined to reduce the size and complexity of its estate over the next three to four years.31 FCDO highlighted opportunities to increase the efficiency of its estate, including through learning lessons from facilities management contracts, consolidating space and co-locating with other governments where appropriate.32 FCDO oversight and governance of its estate
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Government response AI summary
The government agrees to ensure that it builds upon the more certain funding for its overseas estate it received in the 2025 Spending Review to put its overseas estate onto a sustainable footing with a target implementation date of end March 2029.
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HM Treasury
15
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
Around £530 million of FCDO’s estate funding is held centrally by ESND and around £127 million is allocated to posts. FCDO told us that it does know how much of this £127 million is spent by posts on their estate, but only retrospectively. This is because funds are held locally …
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Around £530 million of FCDO’s estate funding is held centrally by ESND and around £127 million is allocated to posts. FCDO told us that it does know how much of this £127 million is spent by posts on their estate, but only retrospectively. This is because funds are held locally and only by retrospectively examining the accounts can it identify how much has actually been spent on estate purposes.42
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Government response AI summary
The government agrees and is establishing a new Estates Committee by October 2025 to strategically review estate operations and investments. It is also widening the remit of the Asset Management Portfolio Board and commissioning an external review by Spring 2026 to improve the operating model …
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HM Treasury
16
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
FCDO’s large estates projects are delivered centrally, and FCDO considers that it has very strong controls on spending for specific projects.43 However, FCDO acknowledges that it currently lacks oversight of how all its projects align with each other or with its policies for other areas, such as maintenance, and whether …
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FCDO’s large estates projects are delivered centrally, and FCDO considers that it has very strong controls on spending for specific projects.43 However, FCDO acknowledges that it currently lacks oversight of how all its projects align with each other or with its policies for other areas, such as maintenance, and whether its prioritisation processes are being used properly. Previously, FCDO had two separate estate departments: one managing policy and large projects, and the other the day-to-day management and maintenance of the estate. FCDO told us that this separation meant these departments were not able to join the dots between both sides of the business and it has now merged them. FCDO is also planning on establishing a new estates governance board in the autumn, with the aim of bringing together into one place its management of spending, policy, projects and intervention and support programmes.44 37 Q 58 38 Committee of Public Accounts, Twenty-Ninth Report of Session 2024–26, Condition of Government property, summary and para 9 39 Q 35 40 C&AG’s report, paras 2.4, 2.18 41 Q 35 42 Qq 57-58 43 Qq 39, 57 44 Qq 39-40; C&AG’s report para 1.16 12 2 FCDO’s management of its estate FCDO data
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Government response AI summary
The government agrees to implement plans to improve its governance model, including establishing a new estates governance board and publishing a new maintenance strategy for posts, with a target implementation date of March 2026.
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HM Treasury
17
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
FCDO told us that it is very challenging to collect the data it needs to manage its estate as it is a “federated organisation,” and its central estate function relies on staff at each of its 282 posts to provide it with data.45 Staff at posts are responsible for updating …
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FCDO told us that it is very challenging to collect the data it needs to manage its estate as it is a “federated organisation,” and its central estate function relies on staff at each of its 282 posts to provide it with data.45 Staff at posts are responsible for updating data on the estate, such as on size and condition, but have not always had the resources or skills necessary to do so. The NAO’s survey of posts found that 41% of respondents considered using IT systems to collect and report data a challenge. In 2023, FCDO reported that 85% of posts did not have a complete register of their physical estate assets or building components. FCDO told us that for day-to-day maintenance and management of the estate, you need to know what you have and what to look after, and that there has been a drive to increase awareness amongst its staff of the importance of having a complete and up to date asset register.46 This is important, for example, in case of fire destroying a building.
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Government response AI summary
The government agrees to set out the progress it has made ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that …
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HM Treasury
19
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
Even if staff at posts start collecting estate data, FCDO faces a challenge collecting this data centrally so it can use it to manage its estate portfolio.50 FCDO uses a range of different IT systems to manage its estate. FCDO property data, for example, is stored on its Pyramid system, …
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Even if staff at posts start collecting estate data, FCDO faces a challenge collecting this data centrally so it can use it to manage its estate portfolio.50 FCDO uses a range of different IT systems to manage its estate. FCDO property data, for example, is stored on its Pyramid system, project data on its Pheonix system and finance data on a system named Hera.51 FCDO’s central IT systems have been developed separately and are not integrated with each other, or with systems at posts. FCDO also lacks the time series data necessary to support benchmarking or tracking of progress. FCDO told us that FCDO has been an organisation that holds data in individual spreadsheets, databases and paper files.52 This would imply that FCDO is using legacy IT systems which are more liable to cyber-attack. FCDO’s 2023–24 Annual Report and Accounts acknowledged risks around its data on the size and value of its estate and leases it holds, including problems collecting data from posts spread around the world.53
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Government response AI summary
The government agrees that FCDO should ensure the collection of good quality estates data is embedded into the standard work of its overseas posts, implement its integrated data management system, and use the latest digital technology to monitor and manage its estate.
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HM Treasury
20
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
We note that modern property IT portals which are tried and tested are readily available. FCDO accepted that it is an organisation whose digital management of its large estate portfolio is not up to scratch and that it needs to transform how it works. It told us that its ambition …
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We note that modern property IT portals which are tried and tested are readily available. FCDO accepted that it is an organisation whose digital management of its large estate portfolio is not up to scratch and that it needs to transform how it works. It told us that its ambition is to get all its different data sets integrated and in 2022 it started developing a workplace management system that will collect all its estate data. FCDO focused at first on moving lease data into the new system but is now planning on adding all its data, including full asset registries, to the new workplace management system by 2028. FCDO told us that this system will help it to understand its maintenance requirements even further and allow it to explain to posts which assets they must proactively maintain.54 Project management
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Government response AI summary
The government agrees to set out the progress it has made ensuring that the collection of good quality estates data is embedded into the standard work of its overseas posts, including when it expects all its overseas posts to have a complete asset register that …
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HM Treasury
21
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
FCDO’s overseas estate contains a number of large properties, including Embassies, official Residences and compounds.55 Many of these properties, such as the Washington Embassy or the British Ambassador’s Residence in Paris, are large heritage assets which perform a key role in supporting the achievement of the UK government’s diplomatic aims …
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FCDO’s overseas estate contains a number of large properties, including Embassies, official Residences and compounds.55 Many of these properties, such as the Washington Embassy or the British Ambassador’s Residence in Paris, are large heritage assets which perform a key role in supporting the achievement of the UK government’s diplomatic aims and operations. The age of such assets means that they often require extensive work to make them safe and fit for purpose.56 Repairing, refurbishing or replacing large estate assets can require FCDO to carry out significant capital 50 Q 51 51 C&AG’s report para 1.22 52 Q 74 53 C&AG’s report para 1.23; Foreign, Commonwealth & Development Office, Annual Report and Accounts 2023–24, HC 63, 29 July 2024 54 Qq 46, 74 55 C&AG’s report, paras 1.2, 1.6 56 Qq 71-72 14 projects, and FCDO told us that it is seeking to deliver 120 capital projects. FCDO estimated in April 2025 that its total capital requirement for its pipeline of such projects was £2.1 billion. FCDO told us it has now assessed all its proposed projects against its prioritisation scorecard, to identify those projects that are most urgent and should be started first.57
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Government response AI summary
The government agrees and is developing a more robust methodology for its annual overseas estate works programme by March 2029, leveraging data to allocate maintenance budgets based on risk and value for money, and has committed to writing to the Committee regarding implementation and within …
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HM Treasury
22
Conclusion
53rd Report - Cost of maintaining the F…
Accepted
FCDO completed or started work on 200 capital projects between April 2018 and November 2024, with a total value of £850 million. FCDO does not hold data on its track record in delivering its projects, but several high-profile projects have run significantly over time and budget.58 • FCDO’s Washington Embassy …
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FCDO completed or started work on 200 capital projects between April 2018 and November 2024, with a total value of £850 million. FCDO does not hold data on its track record in delivering its projects, but several high-profile projects have run significantly over time and budget.58 • FCDO’s Washington Embassy programme completed 12 months behind schedule and its cost increased from £112 million to £160 million (inclusive of contingency costs).59 FCDO told us the main issues were starting the project during COVID-19 and the 90-year-old residence being in poorer underlying condition and requiring more rectification than expected.60 • FCDO’s new High Commission building in Ottawa completed 18 months behind schedule and around £10 million over budget.61 FCDO told us that, as with Washington, the project was affected by COVID-19 and with hindsight it was a mistake to start both projects during a pandemic. Another issue was industrial action in the Canadian construction industry.62
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Government response AI summary
FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026
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HM Treasury
23
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
FCDO told us it had conducted lessons learned exercises for both the Washington and Ottawa projects and does so for all its major projects. However, FCDO does not currently record all its lessons in a single central log. FCDO told us that its portfolio management office had stopped recording lessons …
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FCDO told us it had conducted lessons learned exercises for both the Washington and Ottawa projects and does so for all its major projects. However, FCDO does not currently record all its lessons in a single central log. FCDO told us that its portfolio management office had stopped recording lessons centrally to allow it to focus on other work but said it would restart soon.63 In the meantime, FCDO told us it has already introduced two reforms as a result of lessons learned from its Washington and Ottawa projects: • FCDO has brought in a design authority which is responsible for scrutinising the designs of all estate projects and which will authorise and sign them off as part of the project development process. 57 Q 69, C&AG’s report, para 3.5 58 C&AG’s report, paras 3.8-3.9 59 C&AG’s report, para 3.9 60 Q 71 61 C&AG’s report, para 3.9 62 Q 71 63 Qq 71, 73-74 15 • FCDO has established gateway reviews to take place at key points in the project development process, where it will invite external experts from bodies including the National Infrastructure and Service Transformation Authority (NISTA) to independently review project development.64 Workforce
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Government response AI summary
FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026
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HM Treasury
24
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
Posts not covered by regional facilities management contracts have to use in-house staff or local contractors.65 While larger posts can have dedicated estate managers and estates teams, smaller posts may not have estates specialists on site.66 FCDO’s recent ‘FMR24’ exercise found limited local expertise in posts led to them routinely …
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Posts not covered by regional facilities management contracts have to use in-house staff or local contractors.65 While larger posts can have dedicated estate managers and estates teams, smaller posts may not have estates specialists on site.66 FCDO’s recent ‘FMR24’ exercise found limited local expertise in posts led to them routinely failing to monitor and maintain their property, inconsistent approaches to maintenance across posts and deficiencies in staff training and competency. Sixty-five percent of respondents to the NAO’s survey of estates managers at overseas posts reported that lack of capacity and staffing was a challenge, and 44% reported that staff at post not having the necessary training, skills and experience was a challenge.67 FCDO acknowledged that it does not have all the skills and capabilities it would like worldwide.68 In November 2024, FCDO’s principal risk register rated the risk of inadequate capacity and capability at posts as severe and FCDO has acknowledged that limited capacity means that posts cannot adequately maintain their estates.69
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Government response AI summary
The government agrees to complete its estate workforce strategy, setting out staff and skills needs, current staff and skills, and a plan to close any gaps.
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HM Treasury
26
Recommendation
53rd Report - Cost of maintaining the F…
Accepted
The NAO report highlighted that FCDO has not produced a workforce plan to understand and address capacity and capability issues either in ESND or at posts.72 FCDO told us that while it has skilled professionals in property based in the UK, a big area of its focus is how to …
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The NAO report highlighted that FCDO has not produced a workforce plan to understand and address capacity and capability issues either in ESND or at posts.72 FCDO told us that while it has skilled professionals in property based in the UK, a big area of its focus is how to upskill its country-based workforce. FCDO considers it likely that this upskilling will be a mixture of training existing staff and recruiting externally, depending on local labour markets. FCDO told us that it is working towards a workforce strategy for the whole estate to address its gaps in skills and capabilities around the world. FCDO told us that it will be developing a workforce strategy which will focus on what skills are necessary at a post, the expertise it can deploy regionally and the expertise it can hold centrally to be able to provide the advice that posts need.73 72 C&AG’s report, para 2.20 73 Qq 53-56 17
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Government response AI summary
The government agrees with the Committee’s recommendation and states it has been implemented, noting that the FCDO has written to the Committee alongside the publication of the Treasury Minute.
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HM Treasury