The National Audit Office (NAO) has provided an update on the
Palace of Westminster Restoration and Renewal Programme (the
Programme) in a report published today, setting out what has
happened since the NAO first reported1 on the
Programme in April 2020.
Since becoming formally established in spring 2020 the Sponsor
Body, accountable for the programme, has built its capability,
along with the Delivery Authority that it oversees. The two
bodies have spent £145.5 million so far in set-up costs and
developing the business case for the Programme.
The next formal milestone is for the Sponsor Body to present
Parliament with a business case, setting out the rationale for
the Programme. The business case must also assess the costs,
benefits, and risks of options for the restored Palace, so that
both the House of Commons and House of Lords can decide which one
the Sponsor Body should take forward.
The Sponsor Body initially intended to provide Parliament with a
business case in Autumn 2021. In early 2021 the Sponsor Body
revised the timetable to make it more realistic, aiming to
provide the business case in early 2023 for approval by summer
2023. The Sponsor Body has assessed the risk of further delay to
this timetable as "high".
The Sponsor Body's formal mandate is to prepare a business case
based on Parliament fully moving out of the Palace during the
works. In December 2020 the House of Commons Commission decided
to ask the Sponsor Body to consider the implications of the
Commons staying in the Palace. The Commission formally set out
its requirements for this work in April 2021. The Sponsor Body
presented this analysis to the House of Commons and House of
Lords Commissions for discussion in January 2022. Developing this
approach further as part of the business case would have time and
cost implications.
The Sponsor Body needs clarity on a series of related projects,
which are delayed and not fully developed. This includes
accommodation for the House of Commons and the House of Lords
which will be required during the restoration work.2
In January 2021, the Sponsor Body told the Committee of Public
Accounts that the Palace was falling apart faster than it could
be fixed. Given the condition of the Palace, Parliament must
manage significant liabilities until the restoration work has
been completed. In 2020-21, Parliament spent £20 million on
measures to improve fire safety alone, and the House
Administrations have estimated that repairs and maintenance would
cost £308.6 million between 2022-23 and 2024-25.
Without clarity on the scope of the business case, there is a
risk that Parliament will spend money without the Programme
progressing, and delays to the works will increase the risk of
safety-related incidents affecting the both the Palace and those
that use it.
Notes for Editors
- The NAO's first report on the Restoration and Renewal
programme was published April 2020: Palace of Westminster
Restoration and Renewal Programme - National Audit Office (NAO)
Report
- The Sponsor Body is responsible for some of these projects,
such as providing House of Lords accommodation, and the House
administrations are responsible for others, such as providing
House of Commons accommodation.
