Recommendation 12

FCDO told us the capital increase was valuable and gives it a chance to sort out its estate, but it does not by itself get it out of the danger zone and its estate remains a severe risk to its organisation.29 FCDO told us that it would still be operating in a resource-constrained environment and that its 2025 Spending Review settlement also requires it to make 5% efficiency savings annually. FCDO told us that it is therefore taking a strategic look to identify where it can consolidate its estate and has developed two different prioritisation mechanisms for its resource and capital funding, to ensure funds are invested where they will have the greatest impact.30 FCDO also told us that it is determined to reduce the size and complexity of its estate over the next three to four years.31 FCDO highlighted opportunities to increase the efficiency of its estate, including through learning lessons from facilities management contracts, consolidating space and co-locating with other governments where appropriate.32 FCDO oversight and governance of its estate