Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Evidence received from Cabinet Office and DIO on condition of government property.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from Cabinet Office and the Defence Infrastructure Organisation (DIO) on the condition of government property.1
Government Response Summary
The government states the 'recommendation' is implemented and describes existing Consolidated Budgeting Guidance and flexibilities for departments to manage and roll over capital budgets.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented As set out in Consolidated Budgeting Guidance, departments should ensure spending plans - including capital plans - are taut and realistic. At Spending Review 2025, HM Treasury worked with departments to develop a deliverable pipeline of capital programmes and projects. In the event of underspends, the Consolidated Budgeting Guidance already permits departments to roll over, or ‘budget exchange’, a set percentage of their resource DEL and capital DEL budgets forward into the next year. For capital programmes with a DEL budget of over £50 million in the year in question, additional flexibilities are available to carry forward up to 20% of the programme’s capital DEL budget subject to the conditions set out in para 1.85 of the Consolidated Budgeting Guidance. Departments that wish to take advantage of this flexibility must notify HM Treasury 6 weeks ahead of Supplementary Estimates. There is no scope to change DELs after Supplementary Estimates.