Ministry of Housing, Communities and Local Government: Repairs and Maintenance

The Department has not undertaken a dedicated, standalone assessment of the value for money delivered specifically through the 2003–2005 redevelopment of 2 Marsham Street. However, the National Audit Office reviewed the associated Private Finance Initiative arrangements for the new Home Office headquarters in 2003. The NAO concluded that the Home Office had secured a good price through a well‑run competition, with risks appropriately allocated and favourable financing obtained. The report indicated that the project was expected to deliver value for money, provided the remaining accommodation and property‑related risks were managed effectively.

The Public Accounts Committee’s Eighteenth Report (2003–04) further found that commissioning a new building rather than refurbishing the three former Marsham Towers offered better value for money, avoided the business disruption and costs of temporary accommodation, and supported the consolidation of government estate functions. The Committee noted that the redevelopment contract, valued at £311 million (net present cost), was selected as the most cost‑effective option following full competition.

These independent assessments confirmed that the redevelopment represented value for money for the taxpayer at the point the investment decision was taken. The Treasury has made no subsequent assessment that contradicts these findings.