Source · Select Committees · Public Accounts Committee

Recommendation 15

15

Home Office failed to complete a full business case for the Northeye site acquisition.

Conclusion
The Small Ministerial Group, established around November 2022, implemented concessions to the process of acquiring sites, including dispensing with the requirement for a full business case before approving acquisitions. The Home Office began drafting an outline business case for the acquisition of the Northeye site, dated 1 March 2023, but never completed it.42 When asked why a full business case was not developed for the Northeye site, despite is being a condition for HM Treasury approval, the Home Office explained that it could not complete a full business case in time due to the lack of final cost information for operationalising the site. 35 Q 31 36 C&AG’s Report, para 1.19–1.20 37 Q 26 38 Q 26 39 Q 24 40 C&AG’s Report, para 11, Figure 4 41 Q 17 42 C&AG’s Report, para 1.12, Figure 2 14 Instead, it opted to complete an outline business case.43 The Home Office also stated it was now resetting its asylum accommodation programme and will revise the programme business case, with a formal accounting officer assessment expected in the first quarter of 2025.44 When asked if the Home Office would develop a specific business case for the Northeye site, given it plans to either transfer or sell it, the Home Office explained it would develop a “disposal strategy”.45 It said this strategy would assess the cost, value and interest in the site, which the Home Office believes will help ensure the “best value-for-money solution” for the taxpayer.46 Appropriate skills and capabilities