Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
New volunteer estate maintenance contract experiencing initial performance issues.
Recommendation
Since August 2024, the maintenance and repair of the volunteer estate has been brought under the Department-wide Future Defence Infrastructure Services (FDIS) estate maintenance contract; previously, each RFCA had delivered these services through local contracts. This was intended to improve compliance, management information and supplier performance monitoring for the estate.36 There have been some initial teething problems, with suppliers not meeting all their performance measures. The Council recognised that, as with the introduction of any large contract, teething problems were normal, and said that these had largely been resolved. There was one contract where issues were still outstanding, but work was ongoing to improve performance.37
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.