Source · Select Committees · Public Accounts Committee
Thirty-First Report - Managing central government property
Public Accounts Committee
HC 48
Published 21 December 2022
Recommendations
2
Accepted
The Cabinet Office’s efforts to update its property database have been subject to a series...
Recommendation
The Cabinet Office’s efforts to update its property database have been subject to a series of unnecessary delays and setbacks. The Cabinet Office announced its new property database in 2018, with an anticipated launch date in 2021. The Cabinet Office …
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Government Response Summary
An analysis has been conducted and actions have been taken forward to the current procurement, so that the delivery will be supported with in-house technology expertise and will be in a phased manner.
HM Treasury
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3
Accepted
The land and science property portfolios do not have clear leads, which frustrates decision making...
Recommendation
The land and science property portfolios do not have clear leads, which frustrates decision making and creates a lack of accountability for their management. In 2021, the Cabinet Office organised government property into twelve portfolios, such as health or defence, …
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Government Response Summary
Defra has agreed to be the portfolio lead for the land portfolio, and the lead for the science portfolio is likely to be the Department for Science, Innovation and Technology (DSIT), with a further update to be provided before summer recess.
HM Treasury
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10
Accepted
The Cabinet Office was not able to tell us when the inSite system would be...
Recommendation
The Cabinet Office was not able to tell us when the inSite system would be functional or how much it will cost. The Cabinet Office stated that such information could only be provided after it agreed a contract with a …
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Government Response Summary
The government agrees with the recommendation to get the new property database up and running as soon as possible and has set a target implementation date of Spring 2024. It will continue to ensure the legacy system remains fully operational.
HM Treasury
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Conclusions (4)
7
Conclusion
Accepted
Government’s plan to reduce the operating costs of the government estate is not sufficiently ambitious. The Cabinet Office could not tell us if the government’s current operating cost to property value ratio is a good one. In 2020–2021, the operating cost for central government property was £22 billion which on …
Government Response Summary
The government will reduce the size of the government leasehold estate through the government Hubs programme and greater sharing of space across the public sector to achieve £500 million operating cost savings per annum by the end of the Spending Review period.
9
Conclusion
Accepted
Citing staffing problems, the contractor, Landmark Solution, did not complete the inSite project, even when granted an extension. The Cabinet Office terminated its contract with Landmark solutions in July 2022, by which point it had paid out £880,000 of the £1.3 million contract. The Cabinet Office told us that it …
Government Response Summary
The government agreed with the Committee’s recommendation to get its new property database up and running as soon as possible with a target implementation date of Spring 2024.
13
Conclusion
Accepted
Currently, ten of the twelve portfolios have a lead department. The science and land portfolios do not have a lead.32 Given the importance of portfolio management to government’s plans for the estate, and in ensuring a single point of accountability, we queried why two portfolios did not have a designated …
Government Response Summary
The government agreed with the Committee’s recommendation to name lead departments for the science and land portfolios and the Department for Environment, Food and Rural Affairs (Defra) has agreed to be the portfolio lead for the land portfolio and the lead is likely to be the Department for Science, Innovation and Technology (DSIT) for the science portfolio.
18
Conclusion
Accepted
We questioned the Cabinet Office about how current turbulence in the property market may affect this target.46 The Cabinet Office acknowledged these risks, particularly surrounding valuation. It assured us it would seek appropriate professional advice and there would be no fire sale of assets.47 The Cabinet Office also explained its …
Government Response Summary
The government agreed with the Committee’s recommendation and will write to the Committee with information on how it intends to reach its property disposal target by April 2023.