Short-termism and data gaps harm effort to tackle £49bn maintenance bill

Latest News Mon, Jun 16, 2025 7:16 AM

Key public services are being regularly affected by the poor condition of some Government property and the failure to maintain it.

In a report on the condition of Government’s property holdings, the Public Accounts Committee lays out a series of recommendations to help government tackle its (at least) £49bn maintenance backlog.

The report finds that risks relating to the condition of Government’s extensive property holdings have now materialised.

Due to dilapidation, 4,100 prison cells have closed since 2010, in the context of a crisis in prison estate capacity.

In the NHS, the report finds that an average of 5,400 clinical service incidents occur each year due to property and infrastructure failures, including closed departments, suspended services and cancelled appointments. The inquiry also saw concerns raised with government on the condition of the defence housing estate, with the report calling on the Ministry of Defence to lay out its plans for redeveloping its housing estate.

Noting the potential for the emergence of further risks such as emergency repairs of buildings with reinforced autoclaved aerated concrete (RAAC) and asbestos, the PAC is calling for Departments to include explicit analysis of the risks across their portfolio in their maintenance plans, as well as information from central government on how Departments are being supported to minimise the risks posed by poor maintenance.

On funding, the report finds that the annual basis by which Departments can bid for money for property maintenance hinders the ability to plan longer-term works. Currently, property works may be concentrated close to the end of a year to avoid losing funding, despite likely less favourable weather conditions. As well as recommending longer-term planning of maintenance, the PAC is calling for more consideration to given as standard to alternatives to maintenance which may deliver better value for money, such as moving to new buildings.

The report further warns of gaps in skills and data to tackle these issues. While the property maintenance backlog reached at least £49bn at Oct ’24, the true figure likely exceeds this estimate. Condition data is outdated, collected at different times, and based on various definitions. The PAC is also concerned that it may be very challenging to maintain existing property professional staff numbers and recruit more across government, in the context of attempts to reduce civil service expenditure. Noting also that government property has the lowest proportion of women working in it of any of the government functions, the report calls for a plan from government to improve skills and diversity of property professionals across government.

The PAC is recommending that all departments should properly plan to spend all the capital money that they have bid for during the relevant financial year to avoid underspends. Alternatively, the Treasury should be prepared to allow this money to be rolled over into the next financial year.

Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “There is only so much that even the most diligent and committed professionals can do to maintain a high standard of service, when working in poorly maintained buildings. Our Committee has long identified running themes in our work – of poorly maintained infrastructure, short-term planning, a lack of data and a lack of skills. Our latest report on government property finds all these themes sadly alive and well, with impacts and disruption across the government’s sprawling property holdings.

“One of the biggest problems in government property is the defence housing estate, too much of which is made up of entirely inadequate accommodation. It was therefore welcome to hear of extra funding for forces housing as part of the Strategic Defence Review. Overcrowding, damp, problems with central heating and water systems – it is beyond unacceptable that we lack enough good condition properties for our military families. We regularly hear from this government that it aims to ‘fix the foundations’ of the country. We hope the recommendations in our report help government to quite literally do just that, for those who live, work and depend on these crumbling structures. It is incumbent on government to move with the utmost alacrity to swiftly address these long-running issues.”

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