Recommendation 3

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.