Question

To ask The Senior Deputy Speaker how Parliament's Restoration and Renewal project will be funded.

The funding framework for the Restoration and Renewal (R&R) Programme is primarily set out in the Parliamentary Buildings (Restoration and Renewal) Act 2019 (“the Act”). The Act sets out how the R&R Programme is funded in both phase 1 and phase 2 of the Programme. The House Commissions set a limit for the overall expenditure for phase 1. Both Houses of Parliament must approve the funding limit for phase 2.

Under the Act, the R&R Delivery Authority receives its funding on an annual basis via a grant administered by the Corporate Officers of the House of Commons and House of Lords. This is laid as an Estimate in the House of Commons. Subject to parliamentary approval of this expenditure, the monies are provided by HM Treasury.

During development of the Estimate, the Delivery Authority’s proposed budget is initially subject to scrutiny by the R&R Client Team and House finance teams, R&R Delivery Authority Board, R&R Programme Board, and the R&R Client Board. Following this process the Estimates is submitted to the Parliamentary Works Estimates Commission (PWEC). This was established by the Act with a responsibility to review an Estimate for the Delivery Authority’s expenditure before the Estimate is laid. PWEC is required to consult HM Treasury as part of its review; to date, HM Treasury has concluded that the Estimates have been “taut and realistic”.

The National Audit Office (NAO) examines, certifies and reports on the Delivery Authority’s annual statement of accounts. The NAO has the ability to carry out value for money studies into the delivery of the Programme and has undertaken two reviews of the R&R Programme to date.

Some expenditure related to the R&R Programme is not borne by the Delivery Authority, such as the budgets for the R&R Client Team and the House of Lords R&R team as well as elements of spend by Strategic Estates (who, for example, lead on delivering Commons temporary accommodation on the Northern Estate). These budgets are contained within the wider House Administration Estimates and are formally scrutinised by the House Commissions, as advised by their respective finance committees, and are subject to parliamentary approval.