Background to the report

The Palace of Westminster (the Palace) requires extensive restoration to address serious risks and priority improvements, including deteriorating mechanical and electrical systems, fire safety issues, the presence of asbestos and the condition of the historic fabric.

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In 2013, both Houses of Parliament established the Restoration and Renewal Programme (the Programme) to address these concerns.

In 2018, Parliament agreed that work had to be done on the Palace. It also agreed to leave the Palace (known as ‘decant’) while work was ongoing.

In 2019, Parliament passed the Parliamentary Buildings (Restoration and Renewal) Act 2019 (The Act). The Act sets out arrangements for delivering the Programme, including establishing new bodies, defining their functions and governance, and setting the funding approval process.

The Programme is at a critical stage, with approval being sought from Parliament to reduce the number of delivery options being considered from four to two and to initiate a seven year, £3 billion capped package of initial works (known as the ‘phase one works’) to allow the Programme to progress while the delivery options are developed further.

Scope of the report

The NAO reported on early value-for-money risks to the Programme in 2020, and updated on progress in 2022.

This report examines whether the Programme is set up for success at this stage of development and makes recommendations where necessary to put it on a stronger footing. It examines:

  • progressing the Programme, including the risks of delay and re‑opening decisions
  • how the cost and schedule estimates for the costed proposals were developed and assured
  • plans for the phase one works including temporary accommodation
  • how governance on the Programme is working and how it may need to change

Conclusions

The Restoration and Renewal Programme addresses a clear and urgent need to reduce risks to the Palace of Westminster. There is no way forward that does not incur cost and risk, with inaction itself being a choice with serious consequences.

The Client Board’s costed proposals provide Parliament with the information it needs to decide on how to proceed, and the phase one works are a sensible approach to keeping the Programme moving forward while longer term plans are developed.

The value-for-money of the Programme will depend on Parliament’s ability to provide sustained direction and make timely decisions. It is imperative that this is supported by governance arrangements that are clear on who is accountable and who has authority to act, in order to maintain the effectiveness of, and confidence in, the Programme.

The governance arrangements must provide a clear strategic anchor for the Programme, align authority with accountability, and manage critical interfaces between the Client Team, the Delivery Authority and Strategic Estates.

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View press release (15 Jun 2026)

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