Restoration and Renewal - Developments Since October 2019
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By Richard Kelly 17 September 2021 Restoration and Renewal - developments since October 2019 Summary 1 Background 2 Sponsor Body, Delivery Authority and Estimates Commission 3 Strategic Review 4 Budget and Outline Business Case 5 Northern Estate Programme 6 NAO Report (April 2020) 7 Public Accounts Committee comment on the NAO report (October 2020) 8 Formal documentation 9 Future timetable commonslibrary.parliament.uk Number 08968 Restoration and Renewal - developments since October 2019 Image Credits CRI-1564 by UK Parliament/Mark Crick image. Licensed under CC BY 2.0 / image cropped. Disclaimer The Commons Library does not intend the information in our research publications and briefings to address the specific circumstances of any particular individual. We have published it to support the work of MPs. You should not rely upon it as legal or professional advice, or as a substitute for it. 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If you have general questions about the work of the House of Commons email [email protected]. 2 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 Contents Summary 5 Maintaining a continued presence in the Palace of Westminster 6 1 Background 7 2 Sponsor Body, Delivery Authority and Estimates Commission 9 2.1 Sponsor Body 9 Annual report 10 2.2 Delivery Authority 10 Annual report 11 2.3 Estimates Commission 11 3 Strategic Review 13 3.1 The review 13 3.2 Publication of the Strategic Review 16 3.3 Debate in the House of Commons (16 July 2020) 19 3.4 Debate in the House of Commons (20 May 2021) 19 4 Budget and Outline Business Case 22 4.1 Scope of the Outline Business Case and maintaining a continued presence in the Palace of Westminster 23 Scheme objectives 24 4.2 Total cost of the Programme 25 5 Northern Estate Programme 27 6 NAO Report (April 2020) 29 7 Public Accounts Committee comment on the NAO report (October 2020) 31 7.1 Sponsor Body responses to the PAC report 32 7.2 Infrastructure and Projects Authority 33 8 Formal documentation 35 3 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 9 Future timetable 36 Approving the outline business case 36 The timing of decant 36 Covid-19 and R&R 37 Appendix: Before the Act 39 4 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 Summary The Parliamentary Buildings (Restoration and Renewal) Act 2019 received Royal Assent in October 2019. The Act creates the Parliamentary Works Sponsor Body, which will have responsibility for the restoration of the Palace of Westminster. The Sponsor Body, which had operated in shadow form from July 2018, was established substantively on 8 April 2020, six months after Royal Assent. The Sponsor Body will propose an Outline Business Case (OBC) for Restoration and Renewal, to be voted on and agreed by both Houses of Parliament, before the building works can begin. The target date for delivering the detailed and costed plan to both Houses of Parliament is "as early as possible in 2023". Under the Act, the Sponsor Body is required to form a company limited by guarantee to formulate proposals relating to Palace restoration works and to carry out the Parliamentary building works in line with the requirements of the Sponsor Body. It will “procure and manage the contractors and supply chain”. The Board of the Sponsor Body agreed to incorporate the Delivery Authority at its inaugural meeting on 8 April 2020. On 24 April 2020, the National Audit Office (NAO) published Palace of Westminster Restoration and Renewal Programme, a review of the Restoration and Renewal Programme. The review was based on work carried out between January and March 2020 (whilst the Sponsor Body was still in shadow form). The NAO expected “an outline business case planned to be ready in autumn 2021, and approval from Parliament expected to follow in 2022” but it noted that “Future dates may change as a result of the COVID-19 pandemic, ongoing at the time of this report”. On 19 May 2020, the Sponsor Body announced that it would “review options for how the restoration programme should be carried out, including new ways of working developed in response to the health crisis caused by Covid-19”. The Strategic Review was published on 11 March 2021. A written statement on the same day noted that: The review sets out clear proposed objectives for the restoration and the need for clearer governance and closer working with Parliament. Supported by the Delivery Authority, the Sponsor Body will continue to develop the detailed and costed restoration and renewal plan that will for the first time give an accurate sense of the costs, timescales 5 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 and full detail of the work needed. The detailed and costed restoration and renewal plan will be put before both Houses for a decision before the Parliamentary building works can commence. Maintaining a continued presence in the Palace of Westminster Following the publication of the Strategic Review, the House of Commons Commission considered the question of a continued presence during R&R. Its minutes recorded that: The Commission approved the requirements for maintaining a continued presence in the Palace of Westminster, during Restoration and Renewal, which will form part of the Sponsor Body’s outline business case work. In its annual report, the Sponsor Body confirmed that it was exploring how a continued presence could be maintained. The House of Commons Commission received an interim update on the Continued Presence Study at its meeting on 6 September 2021. The Commission noted that two scenarios were in development. It also took note of “the early findings and associated key risks and issues identified for the interim update”. In a discussion on the Sponsor Body Progress Report at its June 2021 Board Meeting, it was noted that the “continued presence remained a big risk for the Programme”. In a discussion on the Programme’s Schedule, the minutes recorded that: The absence of an approved decant strategy for the House of Commons presented a significant challenge for the Programme. This would be required withing the next six months. 6 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 1 Background The Parliamentary Buildings (Restoration and Renewal) Act 2019 (PBRR Act) received Royal Assent in October 2019. The Act creates the Parliamentary Works Sponsor Body, which will have responsibility for the restoration of the Palace of Westminster. The Sponsor Body, which had operated in shadow form from July 2018, was established substantively on 8 April 2020, six months after Royal Assent. The Sponsor Body will propose an Outline Business Case (OBC) for Restoration and Renewal, to be voted on and agreed by both Houses of Parliament, before the building works can begin. At the time of the Bill’s second reading in May 2019, these votes were expected during 2021. But in March 2020, the votes were expected in 2022. On 24 March 2021, Sarah Johnson, Chief Executive of the Sponsor Body, told the Parliamentary Works Estimates Commission that the programme’s “target date for delivering the detailed and costed plan to both Houses of Parliament is as early as possible in 2023”. 1 In May 2020, the Sponsor Body announced that it would undertake a Strategic Review (see section 3.1). The Strategic Review was published on 11 March 2021 (see section 3.2). It recommends continued work to develop a “Do Minimum” option and a “Do Maximum” option to “’book end’ the development of two further options, the value for money of which can be assessed in the Outline Business Case”. The House of Commons held debates on Restoration and Renewal soon after the Strategic Review was announced (on 16 July 2020 (see section 3.3)) and following its completion (on 20 May 2021 (see section 3.4)). In his preview of parliamentary business for the week of the debate in July 2020, Mark D’Arcy, the BBC’s Parliamentary correspondent, reviewed the background to the debate. He noted that MPs had agreed to move out of the Palace of Westminster but then commented that some MPs had never been reconciled to this decision. He noted that although it was a “house matter”, the Government had a stake because of the costs of the scheme, adding that “there are suggestions that Downing Street is jittery about the cost”, which remained uncertain.2 1 Parliamentary Works Estimates Commission, Oral Evidence: Parliamentary Works Sponsor Body Main Supply Estimate 2021-22, 24 March 2021, Q15 2 Mark D’Arcy, “The week ahead in Parliament”, BBC News, 10 July 2020 7 Commons Library Research Briefing, 17 September 2021 Restoration and Renewal - developments since October 2019 When it discussed the Strategic Review, the House of Commons Commission agreed to ask the Sponsor Body to develop proposals to allow a continued presence (by the House of Commons) in the Palace of Westminster.