My Lords, this is the first time under the new governance arrangements for the R&R programme that a debate on the annual progress report has taken place.
As noble Lords will recall, following the publication of indicative costs and timetables by the sponsor body in early 2022 and concerns that the previous governance structure operated in a way that was too distant from parliamentarians, the commissions of both Houses jointly proposed that a new mandate and governance structure be established to continue work on the programme and to consider a broader range of options for the works. Both Houses agreed to the proposed new mandate in July 2022, which brought the governance of the programme back into Parliament.
The new mandate established a two-tier governance structure which is closer to parliamentarians. The first tier is the Client Board and comprises the two House commissions, chaired jointly by the Lord Speaker and Mr Speaker, and makes the critical strategic choices and recommendations to both Houses regarding the works.
The second tier is the programme board: a joint board of the two Houses with delegated authority from the client board which has conducted much of the heavy lifting for the programme in recent months. The programme board consists of parliamentary Members from both Houses, all of whom from the House of Lords I am very pleased to see here in the Moses Room today: the noble Lords, Lord Collins of Highbury, Lord Sherbourne of Didsbury, and the programme board vice-chair, the noble Lord, Lord Morse. The programme board also consists of the clerks of each House and four external members who bring outside expertise from major and complex projects.
The R&R client team, a joint department of Parliament, was established at the beginning of this year to bring the oversight function for the programme in-house from the former sponsor body. The client team delivers expert programme capabilities, works closely with in-house teams and is enhancing engagement with Members of both Houses.
As part of the recent changes to the programme structure and mandate, the statutory responsibilities and other functions of the sponsor body transferred to the corporate officers of the House of Commons and the House of Lords, the clerks of each House, acting jointly. The independent R&R delivery authority, which the client team is responsible for instructing on behalf of Parliament, continues its work under the new governance arrangements.
The two House commissions identified four priority areas for the works: fire safety and protection, building services, asbestos and building fabric conservation. The House commissions also established parameters to guide the works in the current development phase, calling for a wider range of options and different levels of ambition to be considered, to ensure maximum value for money. This sits within wider principles for the programme, which include ensuring a more integrated and cohesive approach between the R&R works and other critical works on the Parliamentary Estate.
In recent months, the delivery authority has been working at pace to provide the programme board with a suite of options on the levels of ambition for the programme and how the works could be delivered, which the programme board was tasked to shortlist. After careful consideration, the programme board recommended two shortlisted options, down from a longlist of 36, to the R&R client board. These two shortlisted options were endorsed by the client board in July. This means that the client board remains on track to present the shortlist to both Houses later this year in the forthcoming report on the R&R strategic case. The two shortlisted options comprise two different ways of delivering the programme but target the same outcome level—in other words, they both have the same level of ambition.
Regarding the level of ambition, the programme board considered carefully the benefits and draw- backs of six possible outcome levels, and recommended outcome level 4 of 5, with level 5 being the highest. This consideration included analysis of the risks and benefits, including the timescales and costs for the programme. The outcome level recommended will deliver improvements to the priority areas of fire safety and protection, mechanical, electrical and other services, health and safety, and building fabric conservation. It will also provide enhanced security protection measures, improve visitor access, significantly increase step-free access and provide broader accessibility improvements to support and facilitate the participation of Members and the experience of visitors to Parliament.
On the delivery of the programme, the client board agreed to recommend two options for further detailed design work and analysis, with the same outcome level, not least to meet the spirit of the new mandate for R&R agreed by both Houses last year, which was informed by engagement with Members of both Houses. The client board will propose that further work be
undertaken on one “full decant” option, where both Houses move out of the Palace at the same time, with one House, likely to be the Commons, returning to the Palace before the works are completed. In the other option, the House of Commons Chamber and essential support services would maintain a “continued presence” in varying locations in the Palace during the works, and the House of Lords would move out of the Palace.
I emphasise that both options will require some form of temporary accommodation. The client board has endorsed that the QEII conference centre is the preferred decant location for the House of Lords and agreed that the northern estate—either Portcullis House or Richmond House—should be explored further as the location for any decant of the House of Commons.
Both Houses are expected to have the opportunity to debate the strategic case before the end of this year, and both will be invited to endorse that further detailed work be undertaken on the two shortlisted options. Endorsement of further work will enable the development of fully costed proposals to support a decision by both Houses regarding the preferred option for delivery of the works, as required by the Parliamentary Buildings (Restoration and Renewal) Act.
It is expected that the costed proposals will be presented to the Houses in 2025, subject to the Houses agreeing the strategic case later this year. Further work on the shortlisted options will ensure that the costed proposals required under the Act are as taut, realistic and affordable as they can be. Having costed proposals for both shortlisted options will ensure that both Houses will be able to make an informed, evidence-based and robust decision regarding the best way forward for the programme, recognising our role as custodians of this historic building for future generations.
When the strategic case report is published towards the end of next month, an extensive programme of communications and engagement with Members will be undertaken ahead of the debates. Of course, the forthcoming decision on the strategic case for both Houses is supported by a significant amount of continuing work, which is set out in the 2023 annual report—the focus of today’s debate.
I will not repeat all of the work set out in the annual report, but I will highlight some notable achievements of the programme, in addition to the significant work undertaken to establish the new governance structure and client team. There is now greater alignment between in-house teams and the delivery authority to ensure that we maintain the safety and services of Parliament and deliver value for money. To that end, parliamentary teams are getting on with works, including internal projects such as the safety-critical Victoria Tower external works. This is in line with the new mandate agreed by both Houses last year.
Over 7,500 hours of surveys were conducted during the 2022-23 annual year. This has developed our understanding of the condition of the Palace. Many further hours of surveys have been conducted over the recent Summer and Conference Recesses. This work, which involves significant collaboration between the delivery authority, parliamentary teams and contractors, will continue to inform development of detailed costings and schedules as the programme moves forward.
Significant work engaging Members of both Houses and domestic committees has informed decisions taken by the programme and client boards so far. There is further engagement planned for the months ahead to support the publication of the strategic case and work on temporary accommodation. This demonstrates the objective set out in the new mandate to engage Members more comprehensively and ensure that the R&R programme is closer to parliamentarians.
Tours of the Palace basement and the historic Cloister Court continue to be made available to Members. These tours provide a fascinating insight into the history of the Palace, but I found from my visit a troubling reminder of the decay that the Palace faces and the necessity to progress the programme as swiftly as possible. So I do recommend to those noble Lords who have not signed up to a tour that they do so. It is illuminating, as I say, but it also reveals some of the rich and lesser- seen heritage of which we are custodians.
UK-wide engagement with existing and potential suppliers, in partnership with the British Chambers of Commerce, continued in 2023 following the governance changes. This has included UK-wide visits to promote the programme and discussions with more than 100 businesses about potential opportunities to be involved in the restoration work, demonstrating that benefits of the programme should be felt across the United Kingdom. The heritage and collections team will continue to develop plans to ensure that the collections are safe when the restoration works commence.
The annual report sets out the financial performance for the R&R programme overall, including the costs of the client team and the independent delivery authority. Expenditure for both bodies is scrutinised by various means with the client team, as a joint parliamentary department funded by both Houses, subject to the scrutiny processes faced by the budgets of both Houses’ administrations. The annual estimate for the independent delivery authority is scrutinised by the client team, the programme board—including a sub-board chaired by the noble Lord, Lord Morse, which undertakes detailed scrutiny—the client board and, finally, the Parliamentary Works Estimates Commission before it is laid in the House of Commons.
I will end my opening remarks with what I am confident are shared sentiments among all noble Lords present and beyond. We all know how privileged we are to work in the Palace of Westminster. It is, after all, the heart of our parliamentary democracy, a historic royal Palace and a building recognised the world over. We in our generation have a shared responsibility as custodians of this much-admired building and it is clearly an imperative that we preserve it for future generations.
I would be the first to accept—these are my words—the profound sense of frustration at times as to the progress of the R&R programme. I hope that the establishment of the new governance structure, the forthcoming debate on the strategic case and the annual report that is before the Grand Committee today can give noble Lords somewhat greater confidence, because we are clearly all going to have to play our part in the restoration and renewal of this iconic building. I beg to move.
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