Source · Select Committees · Public Accounts Committee
29th Report - Condition of Government property
Public Accounts Committee
HC 641
Published 11 June 2025
Recommendations
5
Accepted
Set out Cabinet Office plans to improve recruitment, skills, and diversity of government property professionals.
Recommendation
Many departments and arm’s length bodies do not have the skills and capabilities to manage their property portfolio effectively. There is a shortage of skilled property professionals across departments. Departments are finding it difficult to recruit and retain property professionals. …
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Government Response Summary
The government agrees and will produce a strategic capability plan for the property profession during financial year 2025-26, which will identify skills shortages and inform work to improve skills and diversity.
HM Treasury
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7
Accepted
No standard definition for government maintenance backlog impedes strategic funding decisions.
Recommendation
There is no standard definition for the calculation of the total maintenance backlog across government. Government organisations include different costs in their individual calculations. The lack of consistent and complete data impacts government’s ability to make well–informed, strategic choices in …
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Government Response Summary
The Cabinet Office has written to the Committee alongside the Treasury Minute response to provide an update on mandating a standard definition of backlog, Insite implementation, and departmental compliance.
HM Treasury
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8
Accepted
Cabinet Office's InSite programme targeting improved data consistency for government property by April 2025.
Recommendation
The Cabinet Office aims to improve data consistency through its new InSite programme, enabling the implementation of the government property data standard across the central government property portfolio.12 It told us that the Insite was going live and would be …
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Government Response Summary
The Cabinet Office has written to the Committee alongside the Treasury Minute response with updates on data standardisation and Insite implementation.
HM Treasury
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9
Deferred
Poor government property maintenance significantly disrupts public services and drives rising costs.
Recommendation
Well–maintained government properties are more cost–effective than poorly maintained buildings. They contribute to a better experience for the public and higher levels of wellbeing and productivity for staff. Poor property maintenance can result in water leaks, collapsing ceilings, fire alarm …
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Government Response Summary
The government will strengthen the position on inclusion of strategic risks in Strategic Asset Management Plans (SAMPs) as an initial step by reviewing GovS 004: Property. Following this, they intend to consult with departments to determine the practicality and level of detail for further guidance development.
HM Treasury
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15
Accepted
Ministry of Defence reviewing housing estate to address poor conditions and recruitment issues.
Recommendation
We raised concerns about the Ministry of Defence housing estate.26 The Chief Executive of the DIO told us that the Ministry is undertaking a review of the housing estate in order to address poor condition. As part of the review, …
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Government Response Summary
The Ministry of Defence will report to the Committee its plan for redeveloping its housing estate, including long-term plans in the departmental SAMP, disposals, redevelopment and maintenance, target implementation date Autumn 2025.
HM Treasury
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25
Accepted
Overlapping remits between OGP and GPA prompt Cabinet Office review for efficiency
Recommendation
The OGP sets the overall strategic direction for the management of government property overall, split across 15 portfolios.49 The OGP told us that the Government Property Agency (GPA), which is an executive agency of Cabinet Office, sets and delivers the …
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Government Response Summary
The Cabinet Office will write to the Committee with the outcome of the review of the Government Property Agency (GPA), including how it addresses the concerns of duplication, clarifying that the review is not in relation to oversight of all government property.
HM Treasury
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Conclusions (22)
2
Conclusion
Rejected
The poor condition of some property and the failure to maintain it is regularly affecting the provision of key public services. Risks relating to property condition have materialised, taking property out of use and impacting functionality of properties such as prison cells, law courts, schools, hospitals, defence estate and museums. …
Government Response Summary
The government agrees with the recommendation but states that the Spending Review 2025 did not provide additional resources for the Cabinet Office to support departments in minimizing risks from poor maintenance. Therefore, central support for this work will be limited unless departments pool resources.
3
Conclusion
Accepted
Many departments’ property plans lack the information necessary to manage and maintain their portfolios. Departments are required to prepare Strategic Asset Management Plans (SAMPs) to consider the totality of their assets and document their planned approach to managing maintenance and disposals in the longer term, including documenting any property risks …
Government Response Summary
The government agrees with the recommendation, reporting that the Defence Housing Strategy Review (DHSR) is planned for publication later this year. This review will set out a roadmap for renewing Service Family Accommodation, identify surplus land, and inform a comprehensive Strategic Asset Management Plan, directly addressing the Ministry of Defence's housing estate plans.
4
Conclusion
Accepted
Short–term funding for property maintenance is hindering longer–term planning. Departments typically bid for property maintenance funding on a yearly basis. This short–term funding cycle can be inefficient as it hinders departments’ ability to plan longer–term maintenance works. The contracting phase may take a long time and this can mean that …
Government Response Summary
The government states the recommendation is implemented, explaining that The Green Book already mandates that business cases for maintenance funding must include a full range of options, including disposing of existing assets and building new properties, in addition to maintaining existing ones.
6
Conclusion
Accepted
The Cabinet Office’s oversight of government property risks being ineffective due to duplication of roles. The OGP is responsible for the overall strategy for non–office property across government, whereas the Government Property Agency (GPA) is responsible for office related strategy. 7 The OGP sits within the Cabinet Office and the …
Government Response Summary
The government agrees and states that a review of the Government Property Agency (GPA) is underway, and the Cabinet Office will write to the Committee with the outcome and how it addresses duplication concerns.
1
Conclusion
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from Cabinet Office and the Defence Infrastructure Organisation (DIO) on the condition of government property.1
Government Response Summary
The government states the 'recommendation' is implemented and describes existing Consolidated Budgeting Guidance and flexibilities for departments to manage and roll over capital budgets.
10
Conclusion
Acknowledged
The government has identified poor property condition as a significant risk. The Civil Service Board, which supports the strategic leadership of the civil service, considers unsafe property to be one of the risks to the civil service’s ability to deliver the government’s objectives, and assesses it to be outside of …
Government Response Summary
The Civil Service Board considers unsafe property to be one of the risks to the civil service’s ability to deliver the government’s objectives, and assesses it to be outside of its appetite.
11
Conclusion
Acknowledged
The NAO reported that civil service resources for other initiatives have been diverted to deal with risks relating to reinforced autoclaved aerated concrete (RAAC) across government.18 We asked the Cabinet Office about RAAC and how it has impacted the delivery of the work. The OGP told us that resources were …
Government Response Summary
Resources were diverted to coordinate efforts across governments to identify RAAC issues and put in place mitigation plans; seven hospitals in the poorest condition were rebuilt through the New Hospital Programme, while RAAC has largely been repaired in the other less significant instances.
12
Conclusion
Acknowledged
We questioned whether government is adequately prepared to prevent future risks, similar to the sudden emergence of RAAC and asbestos, from affecting property unexpectedly. The OGP stated that it has a clear picture of RAAC and asbestos across all of government. It is now bringing together knowledge and expertise in …
Government Response Summary
The OGP is bringing together knowledge and expertise to better support departments in identifying risks, and that it is important to identify how new methods of construction bring future risks into the estate.
13
Conclusion
Not Addressed
Departments are required to prepare Strategic Asset Management Plans (SAMPs) to document their approach to the maintenance of their estates, as well as the management of risks. SAMPs provide an opportunity for departments to consider the totality of their assets and plan how to manage maintenance and disposals in the …
Government Response Summary
The response refers to the poor condition of some property and the failure to maintain it affecting key public services, but doesn't address the use of Strategic Asset Management Plans (SAMPs).
14
Conclusion
Not Addressed
While SAMPs are mandatory and of high strategic importance, not all departments prepare comprehensive plans.23 The OGP is asking departments for a more forward–looking approach in their plans, including consideration of future risks.24 The Cabinet Office explained that almost all departments have now either produced a SAMP, or have plans …
Government Response Summary
The response addresses a different PAC conclusion regarding property conditions, not the conclusion about SAMPs.
16
Conclusion
Not Addressed
Responsibilities for property management vary across departments. Some manage the property of their ALBs, which includes acquisitions, disposals, maintenance, improvement works and facilities management. Others delegate management responsibilities to their ALBs.28 We questioned the OGP as to how much knowledge it had of ALBs’s property management plans, to which it …
Government Response Summary
The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about property management responsibilities.
17
Conclusion
Not Addressed
We followed up on whether the OGP knows if departments are preparing comprehensive SAMPs that cover ALBs. It assured us that it carried out a review on SAMPs to ensure that they were covering the whole property portfolio. The OGP also noted that SAMPs were on a journey of improvement …
Government Response Summary
The response addresses a different PAC conclusion regarding departments' property plans, not the conclusion about SAMPs.
18
Conclusion
Not Addressed
Government organisations operate with annual maintenance budgets. Transferring unspent funds to the following year is often not easy and requires HM Treasury’s permission. Departments respond to annual budgets by planning on a yearly basis. They may split contracts into smaller chunks, rather than longer, better value contracts. This allows departments …
Government Response Summary
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address annual maintenance budgets and the difficulties of transferring unspent funds.
19
Conclusion
Not Addressed
We challenged the Cabinet Office as to whether this is a good way for government to operate, or whether a longer–term funding settlement would encourage better practice. The Cabinet Office replied that annual budgets are common. It also noted that the Spending Review 2025 will be multi–year. The DIO agreed …
Government Response Summary
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address whether a longer-term funding settlement would encourage better practice.
20
Conclusion
Not Addressed
Departments may reduce their maintenance cost and backlog by disposing of existing properties that they no longer need. However, they may decide not to move because the proceeds from the sale of an old building would 31 C&AG’s Report, para 3.14 32 Q 35 33 C&AG’s Report, para 3.14 34 …
Government Response Summary
The response refers to short-term funding for property maintenance hindering longer-term planning, but doesn't address the disposal of existing properties that departments no longer need.
21
Conclusion
Not Addressed
There is a shortage of skilled property management professionals across departments. If the perceived value of working in the public sector property profession has declined, or levels of pay are no longer considered attractive, his would be a matter of concern for the long term health of the profession. The …
Government Response Summary
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively but doesn't address the shortage of skilled property management professionals across departments.
22
Conclusion
Acknowledged
We asked the OGP how it plans to address fluctuations in property professionals. The OGP told us it is working with departments to adjust their workforce plans. The Cabinet Office is also producing its first strategic workforce plan in summer 2025, alongside maintaining oversight of supply and demand trends.45
Government Response Summary
The OGP is working with departments to adjust their workforce plans, and the Cabinet Office is producing its first strategic workforce plan in summer 2025, alongside maintaining oversight of supply and demand trends.
23
Conclusion
Not Addressed
The OGP told us that the Government Property Function has the lowest proportion of females compared to all other functions. We asked the OGP how it plans to recruit and retain more female property professionals. The OGP told us that it has a successful governance group, the Property Leaders Group, …
Government Response Summary
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively, but doesn't address the proportion of females in the Government Property Function.
24
Conclusion
Not Addressed
We questioned the Cabinet Office about how the planned cost reductions in the Civil Service will impact the number of property professional staff. It explained that there will not be any broad exemptions, including for property professionals, and that the Cabinet Office will look at consultants, contingent labour and cost …
Government Response Summary
The response refers to the skills and capabilities of departments and arm's length bodies to manage their property portfolio effectively and doesn't address planned cost reductions in the Civil Service and their impact on property professional staff.
26
Conclusion
The Cabinet Office has attempted to improve oversight of departments’ management of property, and to increase the guidance available to assist them. It did this through the Better Buildings Programme, launched in 2022, which aimed to share best practice and to establish a consistent backlog calculation methodology across departments. However, …
27
Conclusion
Responsibilities for property management vary across departments. Some manage their property directly, and others delegate this to ALBs. The Department for Education is not legally responsible for the maintenance of the school estate, though it does provide funding, with other responsible bodies (depending on the type of school) having legal …
28
Conclusion
We asked the OGP about ALB’s lack of awareness of the OGP’s guidance, to which it agreed it needed to do more, calling the NAO report a wake–up call to engage more with stakeholders.56 After further challenge on whether it is the responsibility of departments to pass on tools from …