Source · Select Committees · Public Accounts Committee

Recommendation 19

19

Annual budgets challenging for long-term asset management, but Treasury plans multi-year strategies

Conclusion
We challenged the Cabinet Office as to whether this is a good way for government to operate, or whether a longer–term funding settlement would encourage better practice. The Cabinet Office replied that annual budgets are common. It also noted that the Spending Review 2025 will be multi–year. The DIO agreed that managing a building that is expected to last 60 years with yearly spending settlements is very challenging, and that management of infrastructure needs to be long–term. We asked further on whether HM Treasury plans to give greater certainty to departments on maintenance funding, to which Cabinet Office replied that HM Treasury intends to create a 10–year infrastructure strategy, and provide five–year capital funding cycles.35
Government Response

A response document is linked to this report, dated 18 September 2025. Response attribution to this conclusion has not been verified. Read the response document ↗