“Swift decision needed on £11bn+ Houses of Parliament refurbishment”

The National Audit Office has called for Parliament to reach a swift decision on two options to the refurbishment of the Palace of Westminster, warning that the programme is so complex that even the cheapest option will cost at least £11.1 billion, but that every year of delay will cost up to £420m.

Even this cheaper option is estimated to take 19-24 years and will require everyone to move out of the Palace, more commonly known as the Houses of Parliament – but the highest estimate for the most expensive option, which doesn’t require a  ‘full decant,’ is as an eye-watering £39.2m.

A staggering 85% of the total programme – between £9.4m and £33.3m – is estimated to be required for building works, building services and fire protection.

The public spending watchdog warns that because the Grade 1-listed Palace requires extensive restoration to address serious risks, including failing mechanical and electrical systems, fire safety issues and high levels of asbestos, it is critical to reduce delay.

The proposals in its report also recommend that Parliament approves an initial seven-year programme of ‘Phase One’ enabling works capped at £3 billion.

The two recommended options are:

• Full decant: Costing £11.1 billion to £15.6 billion and taking 19 to 24 years;
• Enhanced Maintenance and Improvement plus (EMI+): Costing £19.5 billion to £39.2 billion and taking 38 to 61 years.

The NAO said:

Although the options and their underlying estimates have been through a standard process of development and have been subject to internal and external checks to examine and assure them, all are at an early stage and are likely to face cost and schedule pressures as designs develop.”

The report adds that suitable temporary accommodation is essential if the Houses are to decant and Parliament is to function properly. It also reveals that MPs originally voted for the repair programme – and to move out fully – as long ago as 2018, It notes that with frequent changes of MP since then, some parliamentarians are now resisting the full decant option.

The NAO said:

The Palace is a Grade 1-listed building within a UNESCO world heritage site composed of many buildings which were constructed and modified in different ways over hundreds of years. The Palace also has a mix of large open rooms and many small, enclosed rooms, services (such as electrical, heating and plumbing systems) weaved through the building and a high presence of asbestos. These factors place limits on site access, worker productivity and logistics, which affect how many people and equipment can work on site at any one time. Where Parliamentarians and staff are on site, these constraints are exacerbated: additional temporary structures and equipment, as well as more complex safety and security management, are required.”

The maintenance of the Palace currently costs around £100m a year, a figure which the restoration and refurbishment programme is expected to cut by c£35m. One of the distinctive features of the proposal is to build underground service tunnels to allow maintenance to take place without further shutdowns.