Select committee: Public Accounts Committee
Conclusion 18
29th Report - Condition of Government property
Published 11 Jun 2025
Addressed to HM Treasury
Public Accounts Committee Condition of Government properties All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Government organisations operate with annual maintenance budgets. Transferring unspent funds to the following year is often not easy and requires HM Treasury’s permission. Departments respond to annual budgets by planning on a yearly basis. They may split contracts into smaller chunks, rather than longer, better value contracts. This allows departments to spend allocated funds before the year end, at which point any remaining money would be lost.31 The Cabinet Office noted that there is nothing stopping departments from planning for the longer term.32 Additionally, the NAO report includes the example of HM Revenue and Customs planning over two years for property related projects.33 There are also examples of departments making longer–term asset management plans, such as HM Courts and Tribunals Service’s estates strategy over the next 5 and 10 years.34
From: Public Accounts Committee, 29th Report - Condition of Government property (HC 641), 11 June 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-ninth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 11 August 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty ninth report from Session 2024-26
Published 18 September 2025.
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 recommendations in each area of the report, with target implementation dates ranging from autumn 2025 to the 2027-28 annual reports and accounts.
- On reporting backlogs in annual reports and accounts, the government agrees, but says this is "Subject to the Cabinet Office confirming the standard definition and calculation methods"; HM Treasury will "aim to make changes" to the FReM by November 2026.
- On risk analysis in Strategic Asset Management Plans, the government agrees (target: autumn 2026). The Cabinet Office intends to strengthen the position on strategic or major risks as an initial step, then to consult departments on how far explicit portfolio risk analysis "is practicable".
- The Office of Government Property will write to the Committee by April 2026 on support to departments, but states that central support "will be limited" unless departments support the centre to act on their behalf and pool resources.
- The Cabinet Office will write to the Committee no later than October 2025 on longer-term maintenance planning, and by July 2026 on improvement and assessment of departmental plans.