Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
Future estate optimisation phases lack secured funding and a firm completion timeline.
Recommendation
The Department has planned two further phases of the estate optimisation programme. It envisages these will consolidate some sites, establishing multidisciplinary super reserve centres with additional facilities such as car parking, accommodation and feeding facilities.34 However, the Department has not yet secured funding for these phases of the programme, and it was unable to give us a firm timeline for the completion of the programme. The Department explained that funding for the volunteer estate would compete with other priorities for investment choices when it developed its 30 Qq 23 to 25; C&AG’s Report, para 2.8 31 Qq 17, 38, 40, 43 and 58; C&AG’s Report, para 1.7 32 Qq 26 and 40 33 Qq 26 to 28, 36, 38 and 40; C&AG’s Report, para 2.21 34 Q 38 15 defence investment plan, which it was due to complete in autumn 2025, and said it was confident that the estate’s requirements would feature in the debate.35
Government Response Summary
The government agrees to ensure due consideration is given to the volunteer estate in its investment decisions as it develops its defence investment plan by Autumn 2025. It will assess the volunteer estate alongside the wider defence estate using criteria including operational relevance, value for money, safety and long-term sustainability.
Government Response
Accepted
HM Government
Accepted
5a. PAC recommendation: To establish and maintain an optimised volunteer estate the Department should: • ensure due consideration is given to the volunteer estate in its balance of investment decisions as it develops its defence investment plan which it is committed to completing in autumn 2025. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 5.2 The MOD ensures due consideration is given to the volunteer estate in its balance of investment decisions through a structured, evidence-based approach. It assesses the volunteer estate alongside the wider defence estate using criteria including operational relevance, value for money, safety and long-term sustainability. Condition surveys, usage data and risk assessments help identify where investment in the volunteer estate is most needed and will deliver greatest benefit, such as Cadet buildings and Reserve centres. 5.3 Funding decisions are prioritised according to impact, ensuring essential maintenance, statutory compliance, and improvements to training environments are considered fairly. 5.4 By taking the volunteer estate into account in its overall approach to investment decisions, the MOD aims to balance limited resources while maintaining safe, functional and fit-for-purpose facilities for volunteers, Reservists and Cadets. 5b.PAC recommendation: [To establish and maintain an optimised volunteer estate the Department should] • Write to the Committee alongside its Treasury Minute response, regarding progress on its discussions with HMRC relating to the RFCAs’ VAT status. 5.5 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 5.6 The department submitted a formal submission to HMRC on 1 December 2025 to consider the case and provide further opinion and guidance on what evidence or actions are necessary to be able to recover VAT incurred by MOD on maintaining the volunteer estate. 5.7 The department will provide updates on progress as requested by the Committee.