Recommendation 22

When the Chief Secretary to the Treasury approved the acquisition of the Northeye site on 25 March 2023, he noted that the value-for-money case was marginal and based on assumptions that were highly uncertain.71 The cost of remediating the building of asbestos and removing contaminated ground estimated at £20 million did not feature in the Accounting Officer’s advice.72 The National Audit Office reported that full assessments of the level of contamination and feasibility of the site were not undertaken before the Home Office exchanged contracts with the vendors. In our evidence session, we questioned the Home Office about why a ministerial direction was not sought for the Northeye acquisition, especially given it had weakened the control framework.73 The Home Office explained that it judged all four 65 Q 53 66 C&AG’s Report, para 6–7 67 Qq 14, 118 68 Committee of Public Accounts, The Emergency Services Network, Sixty–Fourth Report of Session 2022–23, HC 1006, 14 July 2023, paras 1 and 5 69 Q 52 70 Q 118 71 C&AG’s Report, para 9 72 C&AG’s Report, para 9 73 Q 21 18 accounting officer tests were met at the time, despite its own Accounting Officer Advice noting significant risks to feasibility.74 However, when asked if, in hindsight, the Permanent Secretary wished a ministerial direction had been sought, he acknowledged that with the current information, “some of the accounting officer tests would not have been met”. The Home Office accepted that, in such a case, either the acquisition would not have gone ahead or a ministerial direction would have been necessary.75 Learning lessons