Source · Select Committees · Public Accounts Committee
53rd Report - Cost of maintaining the FCDO’s overseas estate
Public Accounts Committee
HC 884
Published 12 November 2025
Conclusions (8)
2
Conclusion
Acknowledged
Much of FCDO’s overseas estate is in poor condition, and its estates maintenance backlog would cost an estimated £450 million to resolve. FCDO’s first priority with its overseas estate is providing a safe and legally compliant estate for staff and visitors. However, 933 of its 6,500 properties (around 15%) fail …
Government Response Summary
The government agrees with the recommendation to put its overseas estate on a sustainable footing, reduce maintenance backlog, prioritise funding, and achieve efficiencies, but provides no specific details on how or when these actions will be taken or when the requested plans will be submitted to the Committee.
11
Conclusion
Acknowledged
Since 2010, FCDO has funded its overseas estate capital and maintenance projects through property sales. It has generated £1.47 billion from sales, largely from a sale in Bangkok in 2018 and a partial sale of its Tokyo site in 2022. FCDO has been able to access these funds flexibly, subject …
Government Response Summary
The FCDO will launch an Overseas Network Review (ONR) in January 2026 to rationalize the overseas estate and examine whether there are assets to release. Pending the outcome of the ONR, the estate strategy will focus on creating a safer, smaller, and more secure estate, reducing costs and carbon emissions, and collaborating with other diplomatic services. The estates strategy is due to be updated next in Spring 2026.
13
Conclusion
Acknowledged
FCDO’s overseas estate is diverse, including not just offices and residences but also churches, schools, cemeteries and amenities for staff.33 The overseas estate must also adapt to a wide variety of conditions, including different local laws and requirements, the presence of locally skilled labour and access to material supplies. Consequently, …
Government Response Summary
FCDO’s overseas posts are responsible for managing their own operations, including their estates, with support from the Estates, Security and Network Directorate (ESND).
14
Conclusion
Acknowledged
Posts have responsibility for maintaining their estates. This is funded through budgets allocated to posts by FCDO’s geographic directorates.36 The Head of Mission in each post—the Ambassador or High Commissioner— has the discretion to decide, within the broad budget areas allocated, how 29 Qq 27, 65 30 Q 27; HMT, …
Government Response Summary
FCDO’s overseas posts are responsible for managing their own operations, including their estates, with support from the Estates, Security and Network Directorate (ESND).
15
Conclusion
Around £530 million of FCDO’s estate funding is held centrally by ESND and around £127 million is allocated to posts. FCDO told us that it does know how much of this £127 million is spent by posts on their estate, but only retrospectively. This is because funds are held locally …
21
Conclusion
FCDO’s overseas estate contains a number of large properties, including Embassies, official Residences and compounds.55 Many of these properties, such as the Washington Embassy or the British Ambassador’s Residence in Paris, are large heritage assets which perform a key role in supporting the achievement of the UK government’s diplomatic aims …
25
Conclusion
Acknowledged
ESND provides support to posts in managing their estates by setting corporate standards, and providing guidance and technical assistance. FCDO commissions around 75 regional specialists to support posts: regional technical leads that provide advice on maintenance to posts, and technical works supervisors that provide maintenance in secure areas. FCDO also …
Government Response Summary
The government describes FCDO's role in managing its overseas estate, the challenges it faces, and the support it provides to posts.
26
Conclusion
The NAO report highlighted that FCDO has not produced a workforce plan to understand and address capacity and capability issues either in ESND or at posts.72 FCDO told us that while it has skilled professionals in property based in the UK, a big area of its focus is how to …