Recommendation 29

The Department said that its Programme Business Case had built in substantial allowance for inflation, approximately £360 million over the lifetime of the redevelopment programme. It stated that for the current phase of the programme up to 2024 it was confident it had the money it needed to do the work required and that the construction elements during this phase were relatively small scale.54 With work on developing the main construction contracts not due to start until after 2025, the Department said that it will be its Programme Business Case in 2024 where it will revisit the main projections for inflation. It stated that it will work closely with HM Treasury and the IPA when assessing inflation and deciding the most appropriate pricing strategy to use in its commercial contracts.55