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To ask The Senior Deputy Speaker what is the cashflow time series of each costed proposal for the Restoration and Renewal programme and the discount rate and inflation rate assumed for each, including the timing and budgeted costing of major investments during the outlined time series.
To ask The Senior Deputy Speaker what is the cashflow time series of each costed proposal for the Restoration and Renewal programme and the discount rate and inflation rate assumed for each, including the timing and budgeted costing of major investments during the outlined time series.
The Restoration and Renewal (R&R) Client Board’s recent report, Delivering restoration and renewal of the Palace of Westminster: the costed proposals (HC Paper 1576), sets out the costs for the four delivery options in several different ways, for example total programme costs, average annual costs and net present cost (page 121). The report is available at https://committees.parliament.uk/publications/51442/documents/285576/default/.
The timing and budgeted costing of major investments on the R&R Programme is best illustrated through the estimated spend profiles for each delivery option. The table below shows the estimated proportion of total Programme costs (excluding inflation and VAT, including opportunities), as set out in page 121 of the R&R Client Board’s report, in each 10 year period for the four R&R delivery options. These proportions are based on the shortest estimated programme schedules (P50) set out in the report (P50 is a confidence that the estimate will not be exceeded 50% of the time).
Table: Estimate percentage of total R&R programme spend in 10 year tranches to programme completion (P50, excluding inflation and VAT, including opportunities)
| Full Decant (19 years @P50) | EMI+ (38 years @P50) | Continued Presence (33 years @P50) | EMI (52 years @P50) |
Years 0 - 10 | 38% | 9% | 19% | 6% |
Years 11- 20 | 61% | 27% | 41% | 21% |
Years 21 - 30 | 1% | 34% | 32% | 20% |
Years 31 - 40 | - | 30% | 8% | 22% |
Years 41 – 50 | - | - | - | 22% |
Years 51 - 60 | - | - | - | 9% |
Total | 100% | 100% | 100% | 100% |
The R&R Client Board’s costed proposals report also presents total programme costs including inflation. Inflation is calculated using the estimated spend profiles in the table above and the inflation rates used are based on the Bank of England’s Monetary Policy Report (November 2024):
• 2024/25: 2.25%
• 2025/26: 2.75%
• 2026/27: 2.25%
• 2027/28: 1.75%
• 2028/29 onwards: 2% (flat rate)
The R&R Client Board’s report also presents net present costs for each delivery option based on discounted cashflow analysis. To ensure comparability, the net present cost is calculated over the same time horizon - 100 years – for all the delivery options. The cashflows used to calculate the net present cost for each option include: (a) the total programme costs set out in the report (including risk and optimism bias and opportunities but excluding inflation) which are consistent with the spend profiles in the table above; and (b) the annual estimated operational and lifecycle cost savings once the R&R Programme is concluded (an average of circa £45m per annum).
The net present cost has been calculated using discount rates in real terms in line with HM Treasury’s Green Book Guidance: 3.5% for years 1 to 30; 3% for years 31 to 75; and 2.5% for years 76 to 100.
To ask the Senior Deputy Speaker how many members of both Houses who have not yet accepted the Restoration and Renewal Programme’s invitation to visit the Palace of Westminster basement would need to visit on average on every anticipated sitting day before the end of October in order for all...
To ask the Senior Deputy Speaker how many members of both Houses who have not yet accepted the Restoration and Renewal Programme’s invitation to visit the Palace of Westminster basement would need to visit on average on every anticipated sitting day before the end of October in order for all...
The R&R Programme offers tours of the Palace of Westminster, starting in Royal Court and including the medieval Cloister Court and the basement, for members, staff of both Houses, and members’ staff. Attendees are provided with an insight into the work already being undertaken to maintain the Palace as well as an understanding of the future works needed and the challenges facing the Palace.
Of the current members of either House, 193 members have been on a Palace R&R tour. There are an estimated 85 sitting days before the end of October in which at least one of the Houses is sitting. This would mean an average of 15.1 members would need to take a tour on every anticipated sitting day before the end of October for all parliamentarians to have undertaken a tour (the number of Lords members is based on those eligible to attend proceedings as of 10 April 2025). Given the basement is a working space, there are restrictions on access and tours are timed to avoid the busiest operational periods.
The tours have been publicised by various means in the current Parliament, including through the other engagement fora that the Programme uses to engage with parliamentarians. Tours have been advertised on internal communication channels such as ParliNet, Red Benches, PeerHub and offered in-person at R&R engagement stands (for example, in the 1 Millbank House Library and Portcullis House), at the Lords Members’ Fair, and during 1-to-1 R&R briefings with members of both Houses and others in the parliamentary community. To target new members specifically, the tours were advertised by e-mail to new members of the House of Lords and leaflets offering tours and briefings were available in the communal workspaces used by newly elected MPs. In addition, the Chair and Deputy Chair of the R&R Programme Board e-mailed all MPs and Lords in January 2025 inviting them to engage with the Programme and I also recommended the tour to noble Lords in my opening speech in the parliamentary debate in January 2025 on the R&R annual progress report.
Tours are only one way in which the R&R Programme engages with parliamentarians. The R&R Client Team has held engagement stalls in prominent places such as Portcullis House, offered and held 1-to-1 briefings with members, appeared at committees and party groups, and provided information about R&R on ParliNet and in leaflets. As part of its interactions with members, the team also regularly checks that its engagement channels are working for members and explains how to obtain further information about the Programme.
To ask the Senior Deputy Speaker how many members of both Houses have accepted the Restoration and Renewal Programme’s invitation to visit the Palace of Westminster basement to view the underground services before the presentation of fully costed proposals expected by the end of the year.
To ask the Senior Deputy Speaker how many members of both Houses have accepted the Restoration and Renewal Programme’s invitation to visit the Palace of Westminster basement to view the underground services before the presentation of fully costed proposals expected by the end of the year.
The R&R Programme offers tours of the Palace of Westminster, starting in Royal Court and including the medieval Cloister Court and the basement, for members, staff of both Houses, and members’ staff. Attendees are provided with an insight into the work already being undertaken to maintain the Palace as well as an understanding of the future works needed and the challenges facing the Palace.
Since 2015, 292 members have been on a Palace R&R tour, comprising of 175 MPs and 117 Peers. Of the current members of either House, 193 members have been on a Palace R&R tour, comprising of 93 MPs and 100 Peers.
Lords motion to appoint Lord Mackinlay of Richborough to the Programme Board, in place of Lord Greenhalgh. Agreed to on question.
Lords motion to appoint Lord Mackinlay of Richborough to the Programme Board, in place of Lord Greenhalgh. Agreed to on question.
Lords motion to take note of the report from the Corporate Officer of the House of Commons and the Corporate Officer of the House of Lords, Restoration and Renewal: Annual Progress Report 2024 (HC 228). Agreed to on question.
Lords motion to take note of the report from the Corporate Officer of the House of Commons and the Corporate Officer of the House of Lords, Restoration and Renewal: Annual Progress Report 2024 (HC 228). Agreed to on question.
My Lords, noble Lords know well that extensive and complex work is required to restore and preserve the Palace for future generations. I suspect, too, that noble Lords share my frustration that we are not further forward than we are. What I intend to highlight as I open this debate...
My Lords, noble Lords know well that extensive and complex work is required to restore and preserve the Palace for future generations. I suspect, too, that noble Lords share my frustration that we are not further forward than we are. What I intend to highlight as I open this debate...
My Lords, it is a great pleasure to follow the Senior Deputy Speaker. I put on record my thanks to him and all those on the two commissions, the programme board for its work and the client team. I apologise to the Committee because I will be saying nothing that...
My Lords, it is a great pleasure to follow the Senior Deputy Speaker. I put on record my thanks to him and all those on the two commissions, the programme board for its work and the client team. I apologise to the Committee because I will be saying nothing that...
My Lords, it is a delight to follow the noble Lord, Lord Blunkett, with whom I have had many encounters over the years. I thank the Senior Deputy Speaker for a characteristically thorough, rigorous, courteous and careful report, but decisions have to be made. It is now just on 10...
My Lords, it is a delight to follow the noble Lord, Lord Blunkett, with whom I have had many encounters over the years. I thank the Senior Deputy Speaker for a characteristically thorough, rigorous, courteous and careful report, but decisions have to be made. It is now just on 10...
I commend the noble Baroness on what she is saying. Perhaps she will recall that on this issue—perhaps not on others—I backed her to the hilt as the shadow Health Secretary, and nearly lost my place on the shadow Cabinet as a consequence but was praised enormously by Tony Blair....
I commend the noble Baroness on what she is saying. Perhaps she will recall that on this issue—perhaps not on others—I backed her to the hilt as the shadow Health Secretary, and nearly lost my place on the shadow Cabinet as a consequence but was praised enormously by Tony Blair....
That has made my day.
People do notice. Various vice-chancellors kept writing and saying, “We’ve got a new project or development, and we wouldn’t have had that without the decision”. This is not supposed to be a vain speech in any way; I am just trying to gird us up to...
That has made my day.
People do notice. Various vice-chancellors kept writing and saying, “We’ve got a new project or development, and we wouldn’t have had that without the decision”. This is not supposed to be a vain speech in any way; I am just trying to gird us up to...
My Lords, we are at last now reaching the critical decision-making phase in relation to the restoration and renewal of this building. I should say up front that although I am currently a member and deputy chair of the R&R programme board, and chair of its sub-board, I am speaking...
My Lords, we are at last now reaching the critical decision-making phase in relation to the restoration and renewal of this building. I should say up front that although I am currently a member and deputy chair of the R&R programme board, and chair of its sub-board, I am speaking...
My Lords, I thank the noble Lord, Lord Gardiner, for his very clear annunciation of the report. It is tempting to look backwards, to dwell on the sorry story of complete failure of political will and the shocking neglect of our heritage. To an extent, it is inevitable that this...
My Lords, I thank the noble Lord, Lord Gardiner, for his very clear annunciation of the report. It is tempting to look backwards, to dwell on the sorry story of complete failure of political will and the shocking neglect of our heritage. To an extent, it is inevitable that this...
My Lords, I realise that as a chartered accountant, my remarks will be quite different to those of some of the other speakers, and I apologise for that in advance. Noble Lords have already had a very clear exposition of the project from the Senior Deputy Speaker and my noble...
My Lords, I realise that as a chartered accountant, my remarks will be quite different to those of some of the other speakers, and I apologise for that in advance. Noble Lords have already had a very clear exposition of the project from the Senior Deputy Speaker and my noble...
My Lords, it is a pleasure to follow the noble Lord, Lord Morse, who set out the scene wisely on how we manage a future that will undoubtedly change.
I thank the committee, the staff and the contractors for their work on this marathon of marathons. I also thank ParliAble for...
My Lords, it is a pleasure to follow the noble Lord, Lord Morse, who set out the scene wisely on how we manage a future that will undoubtedly change.
I thank the committee, the staff and the contractors for their work on this marathon of marathons. I also thank ParliAble for...
My Lords, it is a great pleasure to follow the noble Baroness, Lady Brinton. With her customary clarity and passion, she raised a number of interesting issues that I hope very much are paid attention to as these three options are worked up. We had two interesting speeches from my...
My Lords, it is a great pleasure to follow the noble Baroness, Lady Brinton. With her customary clarity and passion, she raised a number of interesting issues that I hope very much are paid attention to as these three options are worked up. We had two interesting speeches from my...
My Lords, I am delighted to follow the Convenor of the Cross Benches—the noble Earl, Lord Kinnoull—who does such a great job for all of us Cross-Benchers. As he mentioned, I was a member of the board of the R&R sponsor body for its full existence, and, three years ago,...
My Lords, I am delighted to follow the Convenor of the Cross Benches—the noble Earl, Lord Kinnoull—who does such a great job for all of us Cross-Benchers. As he mentioned, I was a member of the board of the R&R sponsor body for its full existence, and, three years ago,...
My Lords, before I address the report, will noble Lords allow me to digress a little? My interest in this building and, subsequently, R&R came about when I was a member of your Lordships’ Finance Committee. There were two incidents while I was a member that made me realise: there...
My Lords, before I address the report, will noble Lords allow me to digress a little? My interest in this building and, subsequently, R&R came about when I was a member of your Lordships’ Finance Committee. There were two incidents while I was a member that made me realise: there...
I am really enjoying this. Forgive me but I have to conclude, after only 10 years—well, nine and a half years—in your Lordships’ House and 28 years down the Corridor, that the default position in the Palace of Westminster is always to say no.
I am really enjoying this. Forgive me but I have to conclude, after only 10 years—well, nine and a half years—in your Lordships’ House and 28 years down the Corridor, that the default position in the Palace of Westminster is always to say no.