Committee publication · Correspondence · 18 December 2025

Letter to the House of Commons Commission - Savings Inquiry, 17 December 2025

Summary

The Finance Committee writes to the Speaker setting out its findings from a public evidence session on 25 November 2025 regarding the House of Commons' forthcoming savings and efficiency programme. The Committee calls for greater transparency on capital project costs, acceleration of the savings programme from three years to 15 months, quarterly workforce reporting, and a target of zero net cost for catering by end of Parliament.

Key findings

Committee to publish detailed cost breakdowns for three major capital projects: New Palace Yard (£62m), Derby Gate (£24m), and Victoria Tower (£231m tender increased to £253m after second procurement, costing taxpayers £22m in errors)
Only 11% of planned savings have been identified to date; Administration plans to deliver savings over three years to 2028/29, but Committee urges completion within 15 months by end of 2026/27
House of Commons workforce grew 90% from 1,776.2 FTE (2014/15) to 3,377.7 FTE (2025/26); Committee recommends quarterly workforce reporting and headcount review in communication (120 FTE), security, and catering/retail areas
Catering operation lost £7.8m in 2023/24; Administration has achieved £1.9m savings in current year with £2.5m planned for 2026/27; Committee recommends zero net cost target by end of Parliament
Strategic Estates projects experiencing excessive contract variations (one per day average, three per day on some projects); Committee requests objective to reduce variations and flags poor value for money from contracts operating under expired terms

Recommendations

Commission requests Accounting Officer make public detailed cost breakdowns for New Palace Yard, Derby Gate, and Victoria Tower projects
Commission prioritises technology plans for first half of 2026/27, including upgrades to finance system (20+ years old) combined with HR system
Commission confirms 11% savings figure but requests delivery within 15 months (by end 2026/27) rather than three-year timeline
Quarterly reporting on workforce numbers by team published by Committee
Commission sets expectations for headcount reduction with scope to move quickly, specifically targeting communication staff (120 FTE), security staff, and catering/retail workforce
Some savings generated by Savings Programme targeted at staff health and wellbeing, including investigation and implementation of larger, more affordable Parliamentary Gym
Commission supports zero net cost target for catering by end of Parliament and receives regular updates on catering costs
Commission sets objective for Accounting Officer to reduce number of contract variations on Strategic Estate contracts
Commission provides timely information on contracts currently operating under exemption due to expired initial terms

Tone

Critical

Topics

public-financeparliamentary-administrationcapital-projectsworkforce-planningvalue-for-money

Key actors

Steve Barclay MP, Lindsay Hoyle MP, Morgan Edwards, House of Commons Commission, Finance Committee, House Administration

Notable line

“… budget area of Strategic Estates, comprised an accounting switch from revenue to capital by capitalising staff costs. The second largest proposal comprised the absorption of £3m of risks.”

Key Quotes

“The Committee's view is that publishing the total costs alone is insufficient, and that security or commercial confidentiality are not compromised by providing more detail.”
— Finance Committee · on transparency requirements for capital project costs

“The pace of implementation continues to be a concern, with the Administration planning to deliver these savings over three years to 2028/29. We think this is too slow.”
— Finance Committee · on timeline for savings programme delivery

“… financecommittee@parliament.uk +44 (0)20 7219 6410 workforce grew from 1776.2 to 3377.7 in 2025/26, an increase of over 90%.”
— Finance Committee · on dramatic growth in House of Commons staffing

“… the catering workforce costs of £2.5 million above total turnover are not acceptable and where the losses of £7.8 million in previous years are being addressed”
— Finance Committee · on catering operation deficits

“We are concerned with the number of contract variations currently experienced on construction projects, with an average of one contract change a day common on a number of projects”
— Finance Committee · on Strategic Estates programme management

“Morgan Edwards and his team are to be congratulated on the way they have responded to the challenge to reduce the cost of catering.”
— Steve Barclay MP · acknowledging catering department leadership

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Source · parliament.uk record ↗