Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Acknowledged
Empty HMP Dartmoor incurs £4 million annual fixed costs and £68 million fabric improvements.
Conclusion
Under the terms agreed HMPPS cannot terminate the new lease until after December 2033. The cost of the lease is £1.5 million a year, a slight increase on the £1.44 million it was paying when the lease expired in December 2023.14 We asked HMPPS what the total costs of keeping the empty prison running were. It explained that there are several ongoing costs in addition to the £1.5 million a year in rent, including business rates of £300,000 per year and additional security costs, which it said it was exploring how to minimise.15 In total MoJ confirmed that the fixed costs associated with running the prison are around £4 million per year, including rent, rates, utilities and security costs.16 In addition there is a requirement for the government to pay additional costs (around £68 million) on fabric improvements to the Dartmoor site over the period of the lease.17
Government Response Summary
HMPPS has significantly improved and implemented updated radon policies and procedures, and training for employees, to ensure the effective management of radon and is embedding learning from Dartmoor into future decision-making, to ensure that any future contracts deliver value for money.
Government Response
Acknowledged
HM Government
Acknowledged
1.3 It is accepted that it would have been beneficial for commercial decision makers to have had a comprehensive understanding of the presence of radon at the site and the scale of mitigations required to manage it, prior to entering into negotiations and making a decision on the lease. 1.4 HMPPS has significantly improved and implemented updated radon policies and procedures, and training for employees, to ensure the effective management of radon. This has increased clarity on roles and responsibilities, improved communication and engagement across the business and improved mechanisms for the reporting and sharing of information. 1.5 HMPPS are also embedding learning from Dartmoor into future decision-making, to ensure that any future contracts deliver value for money. Generally, estates projects are delivered as part of the MoJ’s capital maintenance programme. A number of factors are considered to ensure value for money and determine the optimal delivery route, including but not limited to urgency, cost, complexity and nature of the requirement.