Recommendation 4

We are concerned that the Home Office’s culture allowed it to override too easily the controls and processes in place to protect taxpayers’ money. The Home Office appears to have been operating in crisis mode for several years and now asserts that it is moving back to business- as-usual. It argues that its response to an “emergency” meant it had to make quick decisions, which led it to unreasonably abandon controls and weaken approval processes in acquiring the Northeye site and other large asylum accommodation sites, such as the Bibby Stockholm vessel. While the Permanent Secretary told us he was “proud” of how hard Home Office staff have worked to deliver these programmes, many of these programmes have ultimately failed. Home Office staff were no doubt working hard in challenging circumstances, yet the failures surrounding the Northeye acquisition suggest a troubling culture of repeating mistakes and a lack of internal challenge. Moreover, it has often appeared that the Home Office has prioritised appearing to address the issue of asylum accommodation over value for money and the effective implementation of projects. In 2023– 24, the Government Internal Audit Agency found “weaknesses” in the Home Office’s control framework and provided a ‘limited’ opinion on the overall adequacy of its governance, risk management and controls, as it has done for the last six years. We are particularly concerned that the Accounting Officer did not seek a Ministerial Direction in the case of Northeye, given how marginal the decision was and how little was understood about the risks involved. Much of the Home Office’s learning from this poorly managed acquisition focuses on improving processes, but does not directly address the culture in the Home Office that allowed key controls to be abandoned so easily. Without confronting these cultural issues, the Home Office risks repeating past failures in future projects. recommendation The Home Office should, as part of its Treasury Minute r