Recommendation 3

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.