Question

To ask the hon. Member for Blaenau Gwent and Rhymney, representing the Restoration and Renewal Client Board, with reference to the proposed phase one works package estimated at up to £3 billion, what assessment the Client Board has made of the level of the risk that Parliament will have committed substantial irreversible expenditure prior to selecting a final delivery option; what proportion of phase one expenditure would constitute sunk costs if the preferred option were subsequently amended; whether the phase one works materially prejudice the choice between Full Decant and EMI+; and how this phased commitment aligns with the requirement in the Parliamentary Buildings (Restoration and Renewal) Act 2019 for upfront approval of a funding envelope.

Chapter 7 of the recent report from the Restoration and Renewal (R&R) Client Board, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576) sets out the Board’s recommendation for a package of phase one works, in line with emerging best practice. The phase one works would include up to seven years of expenditure as well as financial commitment for some work started in this period, such as underground construction, which would be completed after seven years.

The phase one works are not an alternative to the full R&R Programme; they are foundational to it, however it is delivered. This means the phase one works do not prejudice a choice between the R&R Client Board’s two recommended options of full decant or enhanced maintenance and improvement plus (EMI+). In developing the phase one proposals, the R&R Programme Board considered a range of down‑selection scenarios and the associated impacts on cost and schedule, ensuring that the proposed package remains flexible and does not commit the Programme to a particular delivery option.

A decision by the Houses on a preferred delivery option would be required no later than mid-2030 to ensure that the Programme has a clear trajectory on the final delivery option that Parliament wishes to take. During the period when the phase one works are being delivered, the Programme will develop more robust estimates and detailed designs with its strategic partners, to help inform the Houses to take a decision on a preferred option in the next Parliament.

The sum for the phase one works is included in the overall costs for the options set out in the R&R Client Board’s report. Normal contractual clauses will be used for the work to ensure that any additional expenditure is minimised should a decision be made by the Houses to change the Programme in future.

The Parliamentary Buildings (Restoration and Renewal) Act 2019, which established the framework for the Restoration and Renewal (R&R) Programme, divides the Programme into two phases:

• Phase one includes preparatory works for the restoration and renewal of the Palace of Westminster
• Phase two covers the period between when Parliamentary approval is obtained for the main works and when it ends with completion of the Parliamentary buildings works.

Under section 7 of the 2019 Act, the two Houses are required to approve both the Delivery Authority’s proposals for the Palace restoration and a total funding envelope before the Programme can move to phase two.

The scope of the phase one works is considered to fall within the definition of preparatory works.