Recommendation 29

The Department continues to grapple with a range of estate-related projects. The pilots of the Future Accommodation Model have been delayed, and it remains uncertain whether the outcome will provide service personnel with what they want, especially post-COVID.44 The Department remains in the midst of arbitration to renegotiate its contract with Annington Homes to agree a reasonable level of rent, which process will not be resolved until the end of the 2021–22 financial year.45 The Department also needs to ensure an orderly exit from other PFI arrangements as they end over the next five 37 Qq 6 and 22; C&AG’s Report, paras 19 and 3.26 38 Infrastructure and Projects Authority, Annual Report on Major Projects 2020–21, July 2021 39 Infrastructure and Projects Authority, Annual Report on Major Projects 2020–21, July 2021 40 Q 78 41 Qq 28, 29 and 31, C&AG’s Report, paras 2 and 1.18 42 Q 29, 47 to 49; letter dated 19 July 2021 from Permanent Secretary to the Committee 43 Qq 78, 79 and 89; letter dated 19 July 2021 from Permanent Secretary to the Committee 44 Q 76 45 Qq 1 to 3 Optimising the defence estate 15 years. It acknowledged that it must make better use of the sites provided by these relatively expensive arrangements so that personnel benefit from their better condition and support measures.46 46 Q 25 16 Optimising the defence estate