Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Harlow health campus project plagued by spiralling costs, delays, and substantial written-off expenditure.
Conclusion
The need for a planned replacement to these facilities was initially identified in 2006 and Public Health England (UKHSA’s predecessor public body) was given approval to purchase the land in 2017. However, in February 2024 the NAO found that work on a replacement laboratory at Harlow had been intermittent since the land was purchased, with the programme suspended from 2022 after the Department reallocated funding to other departmental priorities amid uncertainty about the programme. The earliest date at which the Harlow campus could be ready was estimated at 2036. The NAO found that estimates of the projected cost of building the facility had spiralled upward, from an initial estimate of £530 million in 2015 to £3.2 billion in 2023. This increase was partly due to factors such as rising inflation but also due to the numerous delays encountered by the programme.19 UKHSA’s 2023–24 Annual Report and Accounts show that it has so far spent some £400 million on work at Harlow, but has written off £297 million of this spend to date, reflecting the costs of building work already done that it cannot be certain will be completed.20 16 UKHSA Annual Report and Accounts 2023–24, HC 427, 16 December 2024, pages 4 and 35 17 Letter from Dame Meg Hillier to Shona Dunn and Professor Dame Jenny Harries, 24 May 2024 18 Report by the Comptroller and Auditor General, Investigation into the UK Health Security Agency’s health security campus programme, HC 553, 20 February 2024, page 14 19 C&AG’s Report, Investigation into the UK Health Security Agency’s health security campus programme, pages 8–11, 27 20 UKHSA Annual Report and Accounts 2023–24, page 141 13
Government Response Summary
The government agrees with the committee's findings, recognizing the urgent need for a decision on UKHSA’s high-containment laboratories. A decision will be made following the spending review, with UKHSA finalizing the delivery model and commercial strategy by Spring 2026.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2026 3.2 The government recognises that an urgent decision is needed on the future location of UKHSA’s high-containment laboratories. A thorough assessment of options has been conducted to identify the most cost-effective and time-efficient solution, and a decision will be taken following the outcome of the spending review process now that overall capital funding limits have been set out. 3.3 Following this decision, UKHSA will finalise the delivery model and the associated commercial strategy in collaboration with key partners such as DHSC, HM Treasury and the National Infrastructure and Service Transformation Authority (NISTA) which will be fully implemented by Spring 2026 following the completion of a programme business case. 3.4 As previously set out to the Committee in the letter dated 24 November 2024, UKHSA has appointed a new senior responsible owner and programme director as part of the Agency's ongoing efforts to strengthen programme governance, strategic leadership and establishing clear lines of accountability to enable effective delivery.