Select committee: Public Accounts Committee
Conclusion 10
53rd Report - Cost of maintaining the FCDO’s overseas estate
Published 12 Nov 2025
Addressed to HM Treasury
Public Accounts Committee Cost of maintaining the FCDO’s overseas estate All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
FCDO told us that it is not happy with the current condition of its overseas estate and that this presents a severe risk to the organisation.21 Of FCDO’s 6,500 overseas buildings, 933 (around 15%) do not meet its internal target condition score of 70% or higher, according to which buildings are sound, operationally safe and exhibit only minor deterioration.22 In 2024 FCDO estimated that its total maintenance backlog liability was £450 million, far greater than it had previously estimated.23 On top of this, FCDO estimated in April 2025 that it needed £2.1 billion to cover its pipeline of larger estate projects, covering more substantial refurbishments, replacements of assets at end of life, acquisitions and new constructions.24 FCDO acknowledged that the condition of its estate was “quite shocking”.25 In November 2024, FCDO increased the risk rating of its overseas estate from major to severe, based on the risk of irreversible estate deterioration and FCDO being unable to meet minimum health and safety standards.26
From: Public Accounts Committee, 53rd Report - Cost of maintaining the FCDO’s overseas estate (HC 884), 12 November 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fifty-third Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 12 January 2026).
Treasury minutes: Government response to the Committee of Public Accounts on the Fifth-third report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees with the Committee's recommendation" on each of the report's recommendations, and reports some as implemented and others with target dates.
- On estate strategy, the government agrees; an Overseas Network Review fully launching in January 2026 will look at the overall size and shape of the FCDO footprint, and the estates strategy is "due to be updated next in Spring 2026".
- On the maintenance backlog, the government agrees; the Overseas Estate Department is developing a more robust approach to its annual programme of works, with a target implementation date of end March 2029, and it will write to the Committee within six months categorising buildings by risk.
- On governance, the government agrees; a new Estates Committee was established in October 2025 and will meet quarterly, and an external review of the operating model and project delivery is due in Spring 2026.
- On lessons learned from capital projects, the government agrees; the FCDO "is re-establishing a comprehensive lessons-learned process across all capital projects", with a target implementation date of March 2026.