In addition, the budget for the Department’s disposal programme is based on it reducing building costs by £1 billion by 2039–40. This creates risks for the programme’s affordability. For example, as more detailed planning is undertaken and the extent of works is better understood there are indications that the costs of works on sites that will house relocated personnel and equipment are actually increasing rather than falling.36

In addition, the budget for the Department’s disposal programme is based on it reducing building costs by £1 billion by 2039–40. This creates risks for the programme’s affordability. For example, as more detailed planning is undertaken and the extent of works is better understood there are indications that the costs of works on sites that will house relocated personnel and equipment are actually increasing rather than falling.36 Type: conclusion | Number: 24 | Response status: under_consideration Government response: 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 5.2 As with any large portfolio it was initially planned to use the best knowledge and assumptions available at the time. Several factors influenced the reduction in net savings these included 9 si