Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Howell of Guildford (Conservative) on Thursday, 9 December 2010.

Rome: British Embassy

Question: To ask Her Majesty’s Government how much the British Embassy in Rome has cost in each of the last five years.

Answer: The cost of our Embassy in Rome for each of the last five years was: 2009-10—£10,978,363; 2008-09—£10,907,234; 2007-08—£9,601,594; 2006-07—£9,590,323; and 2005-06—£9,492,625. The figure for 2009-10 excludes impairment charges resulting from the revaluation of the Rome estate. Impairment cost is the accounting charge that arises from the reduction in the value of a property below its original cost. It is a notional charge that will only be realised if the property is sold. It is not cash expenditure and is not within the control of the Embassy, since property valuations and exchange rates can fluctuate. In 2008-09, the Foreign and Commonwealth Office (FCO) commissioned a number of building inspections by chartered surveyors from the Valuation Office Agency. The Valuation Office surveyors changed the method of valuation for many buildings in Rome from a market-value-based approach to a depreciated replacement cost approach, to reflect the true cost to the FCO of replacing these assets. This led to a nominal increase in the total value of the FCO’s assets in Rome in 2008-09.

Secondary information