Monday June 15th 2026
Palace of Westminster
Written by Glasgow View Reporter, Liam Eunson
The cost proposal for the programme to restore the Palace of Westminster could cost £11.1 billion to £15.6 billion for a full decant, a report from the National Audit Office (NAO) has revealed.
The report looks into whether the Restoration and Renewal Programme is set up for success at this stage of development. It examines the the progress and evidence underlying the costed proposals for the programme to restore and renew the Palace and assesses them against established practice to determine whether the programme is currently set up for success.
It sets out key findings to inform the Public Accounts Committee’s scrutiny of the Programme, including the implications of delaying decisions; the level of certainty in cost and schedule estimates; the readiness and risks of ‘Phase One’ works; and the effectiveness of current governance arrangements.
The Palace, a Grade I listed building within a UNESCO World Heritage site, requires extensive restoration to address serious risks, including failing mechanical and electrical systems, fire safety issues and high levels of asbestos.
It has been highlighted that the renewal programme is now at a critical stage, with parliamentary approval being sought to reduce the number of options from four to two.
The two recommendations options are for a full decant which will cost £11.1 billion to £15.6 billion over the next 19 to 24 years, or Enhanced Maintenance and Improvement plus (EMI+) which will cost more at £19.5 billion to £39.2 billion over the next 38 to 61 years.
EMI+ refers to Equated Monthly Instalments which is a modified, accelerated repayment structure where you pay more than the minimum monthly instalment to pay off a loan faster and save on total interest.
This is recommended to take longer than option one as the restoration work would be completed in sections.
Undertaking these works is a sensible approach, as this allows the Programme to progress while managing several risks. ButNAO have hoighlighted that plans for how the works will be overseen and delivered need to be finalised.
NAO have explained that: Suitable temporary accommodation is essential if the Houses are to decant and Parliament is to function properly. All Programme options depend on this accommodation being ready on time, but current risks could delay the move, particularly the full decant option.
And, that the Programme must also strengthen its governance arrangements to be able to bear down on cost, schedule and scope; manage interdependencies across the Programme; and support Parliament’s decision on the final delivery option.
To put the Programme on a stronger footing, the NAO have recommended that the responsible delivery teams:
– publish and regularly update a clear, non-technical summary, potentially alongside its business case, akin to Strategy and Delivery Plans used for mega-projects
– provide cost estimate ranges for all ‘Phase One’ work packages and set out how interdependencies between key projects will be managed
– ensure that links and decision-making responsibilities between projects across the Programme and related work on the Parliamentary estate are managed through a single, integrated delivery plan
– work with MPs and Lords at speed to create a clear vision for how each House, and Parliament as a whole, will operate in their temporary accommodation
– review the Programme’s governance arrangements to set clear requirements and hold those delivering to account
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