Estimated capital costs for the 8,000 place programme are around £1.5 billion and estimated annual running costs are expected to be around £0.35 billion once the programme is completed. No additional funding for this programme is, at present, required. Costs will be met by using existing resources and new funds from the Treasury.
Funding has been confirmed for the first 500 of the additional 1,500 places announced in June this year. Decisions on the remaining 1,000 places will be made after Lord Carter has completed his review on the supply and demand of prison places.