Recommendation 2

In its haste to establish large accommodation sites, the Home Office made unacceptable and avoidable mistakes, and failed to protect value for money. The Home Office asserts that its need to deal with a “national emergency” meant it had to take quick decisions, and so it pressed ahead with setting up expensive large asylum accommodation sites without an adequate understanding of what would be required. The Home Office’s estimates of the set-up costs for the large former military sites fell far short of reality. It estimated that it would cost £5 million to ready each of the sites at Wethersfield and Scampton. But costs spiralled to £49 million at Wethersfield, and has cost £27 million so far at Scampton. It also failed to maximise competition in awarding its contracts by simply amending current contracts or using frameworks. Furthermore, these two previous RAF bases will now accommodate significantly fewer people than the Home Office envisioned. Fewer people on sites means a higher per person cost. These errors may ultimately cost the taxpayer £46 million more than if the Home Office had simply retained the use of hotels instead. It is essential that departments ensure that taxpayers’ money is protected, even when required to work quickly. Recommendation 2: As part of its Treasury Minute response, the Home Office should set out what it will do differently in the future so it ensures it undertakes sufficient due diligence at the outset of projects and protects taxpayers’ money when working at pace.