Source · Select Committees · Public Accounts Committee
Recommendation 3
3
Accepted
Set out staffing levels and plans for strengthening commercial capability within asylum accommodation team.
Recommendation
The Home Office failed to ensure it had sufficient capability to manage the commercial and property risks during its acquisition of the Northeye site. In 2023, the Home Office was acquiring several large asylum accommodation sites at the same time but lacked the in-house skills and capacity to effectively manage the commercial risks. Despite offers of support, including expert advice from the Ministry of Justice’s property team, the Home Office chose not to use these options. It brought in contracted staff to manage the acquisition of the Northeye site, but did not have the skills to adequately oversee their work. This led it to agree to unusual contract terms that were almost impossible to meet, resulting the Home Office paying a £0.5 million penalty for delays in completing the purchase. We are concerned about the Home Office’s lack of expertise in both undertaking commercial transactions and overseeing the work of contracted staff. With a shift towards using smaller asylum accommodation sites and the potential retendering of its Asylum Accommodation and Support Contracts, the Home Office must urgently strengthen its 5 capabilities to effectively manage the risks of future projects. Without this, there is a significant risk to both value for money and the successful delivery of these initiatives. recommendation The Home Office should, as part of its Treasury Minute response, set out: how many dedicated commercial and property staff it now has working in its asylum accommodation team (and how many it had at the time it purchased the Northeye site); their level of seniority and experience and/ or professional accreditation; and its further plans for strengthening its commercial capability.
Government Response Summary
The government accepts the recommendation, detailing increased commercial and property capability within the Home Office's asylum accommodation team, including new senior appointments, an additional Commercial Specialist, and an increase of three professionally qualified resources since the Northeye acquisition. It also provides detailed staffing numbers and qualifications for property, facilities management, and health and safety teams.
Government Response
Accepted
HM Government
Accepted
The government agrees with this recommendation. new DG Chief Operating Officer (COO) has been appointed to strengthen the department’s corporate functions. Within the COO Group, the commercial function is led by a new Chief Commercial Officer, appointed in December 2024, bringing renewed senior focus and accountability to commercial services. Commercial capability has increased significantly, with new appointments including an additional senior civil servant Commercial Specialist specifically focused on management of asylum accommodation. This Commercial Specialist now has two senior, plus three contingent, commercial experts who directly support the Asylum Accommodation Programme (AAP) to provide commercial advice. This represents an increase of three professionally qualified resources since Northeye was acquired. In addition to these changes, a new Director General led Asylum Group has been created. Within the Asylum Group is the Asylum Accommodation Taskforce, which is a cross- Whitehall team focussed on delivering alternative forms of asylum accommodation to help meet the government’s commitment to exit asylum hotels. The Asylum Accommodation Taskforce has one dedicated Grade 6 Associate Commercial Specialist as well as two Grade 7s recruited through a Government Commercial Organisation wide expression of interest. The team is supported by 2.5 additional professional contingency staff whilst the department recruits a further four Grade 7s. Finally, the Asylum Group also has wider expertise across Property, Facilities Management and Health, Safety and Compliance. The Property Team is formed of three Chartered Surveyors (MRICS); the lead Senior Civil Servant (SCS1) appointed to the Programme in September 2023 has 24 years of experience in commercial and government property transactions. Within their team are two G7 Chartered Surveyors deliver acquisitions and manage outsourced delivery partners. By comparison, at the time of the purchase of Northeye, a single G7 Chartered Surveyor had recently been recruited, with the acquisition led by outsourced contractors. The Facilities Management team is led by a G6 with CIWFM and RICS qualifications, and the Health and Safety Team is led by a G6 with CertOSH and AIFSM qualifications. 214