Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Deferred
Present cost and time estimates in ranges and report Restoration and Renewal pilot progress.
Conclusion
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 2020, remained. This included securing Parliament’s agreement on how work should be undertaken and what the restored Palace should look like. This had created considerable uncertainty and significantly contributed to delays over the years, and the programme’s top risk is the ability of politicians to take the necessary decisions. Further uncertainties remain around the Palace’s condition – the House Authorities spent nearly three times more than expected renewing the Elizabeth Tower as they did not understand its underlying condition and did not reflect this in cost estimates. During the last 12 months, the Delivery Authority has continued surveys and is considering a pilot to better understand uncertainties. Recommendation 2: The Delivery Authority should: a) Present cost and time estimates in ranges, which will narrow over time as uncertainties reduced, and set out the built-in assumptions behind how estimates have been generated. Restoration & Renewal of the Palace of Westminster – 2023 Recall 7 b) Report back on progress with the potential ‘R&R pilot’ and how this has impacted the assumptions underlying the programme.
Government Response Summary
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.
Government Response
Deferred
HM Government
Deferred
The government agrees with the Committee’s recommendation. Recommendation implemented The annual cost of alcohol to society was estimated to be £21 billion in 2012. The department has updated this estimate to reflect inflation. In 2021 prices, the cost of alcohol to society is estimated at £25 billion. The department has initiated an additional, longer-term piece of work to update the estimate of the cost of alcohol to society. The department has begun a review of existing evidence, starting with costs to the NHS and labour market productivity.