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Parliamentary Works Sponsor Body (Abolition) Regulations 2022

Volume 826: debated on Tuesday 13 December 2022

Considered in Grand Committee

Moved by

That the Grand Committee do consider the Parliamentary Works Sponsor Body (Abolition) Regulations 2022.

Relevant document: 21st Report from the Secondary Legislation Scrutiny Committee

My Lords, these regulations were laid before the House on 22 November and, if agreed, will give legal effect to the decision of both Houses, taken in July of this year, to pass Motions endorsing the House commissions’ report for a revised mandate for the restoration and renewal programme.

Since the sponsor body was established by the Parliamentary Buildings (Restoration and Renewal) Act 2019, concerns have been raised about the conclusions reached in the initial assessment of the emerging costs and timescales. The House of Lords Commission, alongside the House of Commons Commission, expressed concern about the costs and timescales presented by the sponsor body, and I shared some of these concerns. That is why the Government, with the commissions in both Houses, have supported the development of a revised mandate. I am grateful for the collaborative way in which Speaker’s Counsel in the House of Commons has worked with officials in both Houses, including the deputy counsel to the Chairman of Committees, to draft these regulations and for the ongoing advice we have received from the R&R directors.

The new approach to the parliamentary building works will continue to ensure that, as provided for in the Parliamentary Buildings (Restoration and Renewal) Act 2019, Members of both Houses will be consulted. Peers and all those who work in this place will have a chance to express their views on the works. When making critical strategic choices relating to restoration and renewal, the R&R client board will keep in mind the principles agreed by both Houses to deliver a new value-for-money approach that prioritises safety.

The commissions, in a March 2022 meeting, agreed a new approach to the restoration and renewal programme, guided by the principles of prioritising health and safety, ensuring maximum value for money and integration with other critical works on the estate. It is important that all members of the parliamentary community feel that they are engaged on the parliamentary building works, and I am confident that these new arrangements will deliver the required step change in engagement.

In 2018, both Houses agreed that major works to the Palace of Westminster would be essential in order to ensure that this historic and iconic building remains for generations to come. It was decided that the project should be undertaken by a delivery authority and overseen by a sponsor body. The Parliamentary Building Works (Restoration and Renewal) Act 2019 set out the governance arrangements for the project by creating these bodies and conferring particular functions on them. However, earlier this year, the two House commissions recommended a new approach to the programme whereby a new two-tier in-house governance structure would be established.

These regulations, which are made under Section 10 of the Parliamentary Buildings (Restoration and Renewal) Act 2019, will abolish the sponsor body, which will be replaced with an in-house governance structure. The statutory responsibilities and other functions of the sponsor body will transfer to the corporate officers of the House of Commons and the House of Lords—in other words, the clerks of each House.

The Leader of the House of Commons and I have consulted the corporate officers and the commissions of both Houses, in accordance with Section 10(8)(a) of the Act, and both corporate officers have consented to the transfers to them effected by this instrument, in accordance with Section 10(3) of the Act. Ultimately, both corporate officers will have joint responsibility for the parliamentary building works and will, at least once a year, prepare and lay a report before Parliament about the carrying out of the parliamentary building works and the progress that has been made towards completion of those works.

I am aware that Peers have previously raised concerns that without the sponsor body in place, the project may not have sufficient expertise. First, the Houses will not lose the expertise gained by the sponsor body, and the team of staff with that expertise will be brought in-house, as a joint department, and be accountable to the corporate officers. I also emphasise that the delivery authority will not be affected by the regulations; its role is unchanged, although it will now be closer to the Houses. This ensures that the programme retains its valuable experience and expertise. These regulations will allow for greater co-ordination and engagement between the Houses and the delivery authority, which could in turn allow for the delivery of restoration works much sooner. Similarly, the regulations will not alter the role of the Parliamentary Works Estimates Commission; it will remain in place and will scrutinise the delivery authority’s estimates.

This statutory instrument is vital to ensuring that this historic building is restored, while making sure that we deliver for the British taxpayer. Our commitment to ensuring good value for money is reflected in Section 2(5) of the restoration and renewal Act, and it is an approach that I will prioritise.

I would like to reassure colleagues that the House’s important role in this project is not diminished by the regulations. Under Section 7 of the 2019 Act, no restoration works, other than preparatory works, can be carried out until Parliament has approved the delivery authority proposals for those works. In addition, further approval is required for any proposals that would significantly affect the design, timing or duration of the parliamentary building works. Bringing this project in-house is an opportunity, as an in-house governance structure should improve accountability and engagement with Parliament by allowing a close interaction with and accountability to the commissions of the two Houses. I beg to move.

My Lords, I thank the Lord Privy Seal for his opening remarks. Alongside the noble Lords, Lord Carter and Lord Deighton, and the noble Baroness, Lady Doocey, I am a member of the board of the restoration and renewal sponsor body, which is now to be abolished under the terms of this statutory instrument. We were charged with implementing the Parliamentary Buildings (Restoration and Renewal) Act 2019, and I have been acting as the spokesperson responsible for reporting to your Lordships’ House on behalf of the board.

Before we go, the board has bequeathed to its successors a synopsis of the lessons we have learned from our experience over the last two and a half years. Our letter to the chairs of the new client board and new programme board will be publicly available on Monday. Perhaps I can draw out that letter’s three interconnected conclusions. First, the governance structure devised by the R&R Act was flawed. The theory was that creating an autonomous arm’s-length sponsor body would mean freedom from political interference and would expedite swift progress after years of delay. This was naive. The reality was that the relevant parliamentarians retained a controlling role. The work of the sponsor body was constantly held back and confused by the views of parliamentarians, particularly those on the House of Commons Commission who were not committed to the large-scale R&R programme envisaged by the 2019 Act.

In particular, there was antipathy towards a full decant of the Palace. We believed this to be necessary if the essential works, most notably to sort out the horrendous underground labyrinth of pipes and cables in the basement, were to be carried out expeditiously and safely. Indeed, a decant was part of the legislative framework we were obliged to follow. Lack of agreement on this fundamental part of the R&R process high- lighted the inherent conflict built into the governance arrangements for a supposedly independent sponsor body.

Under the new arrangements, the work of the sponsor body, with its oversight of the delivery authority, is to be taken in-house, with its functions transferred to the corporate officers: the clerks of the two Houses. Hopefully, this means that an in-built source of disagreement and crossed wires will now be removed. Our successors will be able to act as a single, united client speaking with one voice in championing the programme and progressing the works—I hope.

However, this leads to a second conclusion. There has never been clarity on the budget, timescale or scope of the R&R exercise. That clarity is now needed if our successors are to avoid endless delays and a waste of public funds, with the delivery authority instructed to undertake unnecessary work. If there are maximum or minimum levels, for example of accessibility in the Palace or of its energy efficiency and sustainability, these need to be stipulated. If Parliament is never going to accept a total cost for the whole project of more than X pounds or a decant period of more than Y years, that needs to be crystal clear up front and as soon as possible.

Thirdly, and finally, the outgoing board accepts with the wisdom of hindsight that we should have recognised that the sudden changes to the country’s fortunes meant a course correction was inevitable. It is obvious in retrospect that when the Covid pandemic struck, followed by turmoil in the economy, a retreat from the measures envisaged by the 2019 Act was going to be called for. Our successors and our colleagues in the delivery authority need to be ready for changes of direction and be prepared for fresh thinking as external circumstances alter.

At the end of this frustrating experience, I remain of the view that, although it will cost a fortune and will need everyone to move out of the building for a prolonged period sooner or later, none the less, the restoration and renewal of Parliament is an incredibly worthwhile initiative. Research shows that the wider public hope for and expect a full refurbishment of this much-loved building. Investment in this great endeavour will support skills, crafts and businesses throughout the UK. A proper R&R programme would not only render the building safe from fire, asbestos, the breakdown of services, falling masonry and the rest but actually save money, and possibly save lives, over the years ahead.

However, I recognise the constraints for elected Members of Parliament. I do not face constituents who may well say, “While we’re struggling through a cost of living crisis, Parliament is spending billions on its own comfort”. Also, the dark cloud of moving out for several years to a less amenable base elsewhere colours everybody’s judgment. Nevertheless, although the process may have lost two or three years, I hope that our successors will have the courage and determination to see it through.

What has been achieved will provide a solid basis for the next stages. Most of the excellent staff in the sponsor body and the development authority will carry on, and their work to date, despite operating throughout the Covid pandemic and through times of political and economic turmoil, has produced a vast quantity of data and physical survey work that will now make possible a clear plan. This plan may mean a succession of more modest mini-programmes stretching into the indefinite future, rather than the single major programme that we pursued, but, if the big issue of the basement renewal can be sorted, all is not lost.

In concluding our work today, we all wish our successors well. We hope that, despite the failure of the 2019 Act, progress will now be made in restoring this internationally recognised and iconic Palace for which the nation is right to feel huge pride and affection.

My Lords, this is not an area that I have looked at very carefully but, when I looked at these regulations, I was rather puzzled by what we hope to achieve by them. The Lord Privy Seal, in his opening remarks, told us that we would not lose the existing expertise and that the delivery authority would be unchanged. So it is not clear to me why transferring responsibility to a corporate body, which is undefined but I assume is the two clerks of the respective Houses, will alter the proposal that was going to cost £13 billion or £14 billion—whichever it was—which, as the noble Lord, Lord Best, just pointed out, is pretty unaffordable in the current climate. Whether you need to be elected or not, spending that kind of money is simply not possible in the current climate. The money is not there. I am worried by exactly what the benefit of this will be, because it looks like the same people are confronted with the same problem, which they have to take forward.

The noble Lord, Lord Best, talked about the belief, which he described as “naive”, that it would be possible to do this without political interference. The reason I want to speak on these regulations is to express frustration at the way projects are carried out in this place, without proper consultation with the Members. In the other place, Members are responsible for voting the means of supply. In this place, to some degree, we are responsible for explaining why these sums of money are being spent.

I can give a more recent example. The decision to alter the security arrangements at Carriage Gates results in traffic going in a one-way system along what is called Chorus Avenue at the front of the House of Lords. That will cost £70 million and, in the process, will put pedestrians at considerable risk. A number of colleagues have argued that there should be a perimeter fence around the House and that that area should be closed to pedestrians. It is very dangerous, and one person lost their life crossing the road. When colleagues make these remarks and talk to the authorities—the corporate body, as it exists—they are ignored.

There is huge opposition to the creation of a new front door to this House. The cost was £2.5 million and it is now £3 million—for a front door. One worries about value for money. The argument put forward is security but, at the end of the day, it is up to Members to discuss these ideas instead of them being imposed on us. We are told that the changes to Carriage Gates and their effect on us are going to happen, that we have no say in the matter and that considerable sums are being spent.

I want to ask my noble friend the Lord Privy Seal a number of questions. First, how much have we already spent on deciding what to do? I understand it runs to hundreds of millions of pounds. Secondly, why is it going to be any different and where is the accountability? The only thing I can see in these regulations is that there is going to be an annual report:

“At least once in every calendar year, the Corporate Officers must prepare and lay before Parliament a report about the carrying out of the Parliamentary building works and the progress that has been made towards completion of those works.”

There is nothing about the expense, estimates or accountability. I find it difficult to accept the idea that an annual report will provide accountability to Members of this House or the other place.

In short, I look at these regulations and it seems to me that nothing is actually going to change and that the fundamental, systemic, strategic problem remains. The noble Lord, Lord Best, said he thought that we might end up doing a series of small projects, perhaps concentrating on the problems in the basement, if indeed that is practical. I may be a Peer, but I do not have a stately home. However, if I imagine for a moment that I have a huge stately home on the scale of this place and I have to be involved in restoration and renewal, if a bunch of consultants came to me and said, “The cheapest way to do this is for you to move out and for the whole thing to be done in one go”, if I were spending my own money I would almost certainly say, “Not on your life.” I would say, “Why don’t we do it a bit at a time over the next 30 years, because that way I might be able to afford it?” To try to do everything in one go is unaffordable. Of course it is always possible to argue that the costs will be less if you do it all in one go, although the experience of building this place in the 1850s was that it did not quite work out that like.

I say to my noble friend that I worry about these regulations. I understand what they do, but I am not sure that they will deliver for the taxpayer what the taxpayer might expect or what the Members of this place might expect in carrying out their duties.

My Lords, this building is like a patient held together with bandages and sticking plasters when only serious surgery can restore it to health. Advice from a range of experts makes it clear that the best way forward is for Members to move to temporary accommodation while the intrusive and very disruptive work is carried out.

It was precisely because making this happen would be so difficult and controversial that Parliament put into statute a sponsor body for the project to act independently and supposedly free from political interference. However, ever since the ink was dry on the Act of Parliament, the sponsor body’s work has been sabotaged by powerful Members of the Commons who want the Palace to be restored and made safe only so long as it causes no inconvenience to them personally and they can remain in the Palace while the work is carried out. Meanwhile, the functions of the delivery authority, which needed to undertake extensive surveys, have also persistently been held back by restrictions on access. So short-term expediency and convenience have won, while the longer-term interests of this Parliament have lost.

So what now? We now have to examine the new arrangements and ensure that they are fit for purpose. If we are no longer to have an independent sponsor body and the project is to become the province of Parliament, it follows that the new arrangements should at the very least be more accountable, but I worry that the new structure will not live up to that ambition. There is to be a programme board with day-to-day responsibility for the project. It is to be

“as small, as senior and as stable as possible to support its effectiveness, but as large as necessary to reflect the range of key stakeholders that need to be represented.”

Meanwhile, the client, in theory replacing the sponsor body and instructing the programme board, will be the two commissions of the Commons and the Lords sitting together. Having been a member of the commission in this House for four years, I say with great respect to its individual members that I am not confident that those arrangements will result in accountability either. Each commission is a large, opaque body and is noted for neither its transparency nor its swift decision-making. So I worry that this structure loses the independence the sponsor body set up but gains us nothing in accountability.

This is important, because Parliament’s in-house record of managing very large- scale projects on time and on budget is dismal. Every very large project, from Westminster Hall to the Elizabeth Tower, has run vastly over budget and miles behind the original timescale. Unless there is very careful oversight, there is no reason to believe that the limited restoration and renewal now on offer will not suffer the same fate.

We have to ask whether the commissions as client of the programme board will really devote the necessary time and be sufficiently independent to scrutinise this project. Of course, the Public Accounts Committee in the Commons will do its best to keep an eye on progress, but it already has an incredible workload. The National Audit Office will likewise continue to conduct its in-depth analysis of whether what has been spent provides value for money for the taxpayer, but both bodies have the whole gamut of public spending to look at, and their accountability mechanisms rely entirely on very busy Members of the Commons. Meanwhile, they both act retrospectively, blowing the whistle after vast sums of money have been spent rather than identifying problems coming down the track and raising the alarm.

I wish the commissions, the programme board and the delivery authority well, but I have very serious reservations about whether today’s SI really leads us to a better, more robust and more accountable means to achieve restoration and renewal. Regrettably, I fear that we are setting up overlapping echo chambers that, despite the best of intentions, will result in less transparency, less accountability and ultimately less chance of delivering a successful project. I very much hope that events will prove me wrong, but I am not holding my breath.

My Lords, the very fact that we have to contemplate a new structure for undertaking this work shows what a dismal period we have been through, lasting many years, with huge amounts of work, vast expenditure and virtually no output. Although everybody agrees that major works are indeed essential, we just cannot carry on as if things will carry on.

The three issues that this proposal attempts to deal with have been aired by a number of speakers. Until the structures are set up and operating, the jury will necessarily be out as to whether they will be successful.

The first issue, which the noble Lord, Lord Forsyth, raised, is: what is the prospect of this body being any better than its predecessor in actually taking any decisions? The answer is that the previous structure was prey to the whims of one or two powerful people in the Commons. The decision-making structure here, being vested as it is in both commissions sitting jointly, at least means that we will not be subject to whimsical decision-making. That might be a modest expectation and aim, but frankly, given the history of this project, if we can avoid that it will be a major step forward.

The second issue relates to the cost and scope of the project. As the noble Lord, Lord Best, said, there has been a lack of clarity on budget, scope and timescale. In asking for a prospectus that is crystal clear on all those fronts, he is slightly crying for the moon, because, as anyone who has ever done anything in an old building knows, once you start you find that there are problems that you did not know existed. Saying, “We know this is going to cost £X billion and that’s the cash limit”, would be a rather unsatisfactory way of proceeding. We need to know what we want to achieve and the process for getting there, because everything else flows from that. That is what the current process seeks to achieve.

On cost, I completely agree that the original approach is unsustainable in the current climate. The original approach, which we saw in most detail in the plans for decanting your Lordships’ House, was almost on the basis that money was no object. It was terrific: in some of the options we would have had a roof terrace and all these wonderful things, and offices for everybody—far more than there are now. That was unaffordable then in reality, but it is doubly unaffordable now.

However, you must think about the period over which this work will happen. There is no way, with a dictator in charge of this project, that you will spend huge amounts in the next two or three years. Therefore, when we say that we do not want to be seen to be spending billions of pounds in the middle of a recession, frankly, chance would be a fine thing. There is no way this project will get into its major expenditure phase during this recession. It will take a minimum of 18 months to decide what we want to do. We then must start doing it, and it will take another year or two before the operation gets into motion. Unless you are extremely pessimistic about the Government’s plans for growth—or lack of them—you would hope that by the time we get round to spending any decent amount of money, the economic position will be considerably different from that of today.

It is possibly a cheap political point, but if the Government are prepared to throw away £35 billion on a failed track-and-trace system, they should be prepared to spend a fraction of that restoring a building which the whole country values and wishes to see in good order. I hope the proposals we adopt will be practical and not seen as extravagant, but, equally, that we will not delay implementation because “the nation cannot afford it”, as that is not the case.

The final issue that the new process must deal adequately with, and which was raised by the noble Lord, Lord Forsyth, and my noble friend Lady Doocey, is accountability. The SI talks about an annual report. I think it fair to say that the team coming across from the sponsor body has a significant comms component and a comprehensive series of plans for consulting Members. I agree that this is essential, but it cannot be a block. We must make progress, because this lack of action is costing hundreds of millions of pounds and threatening the entire physical integrity of the building. This is the last best chance to sort it out.

I agree with all the comments so far, but I repeat the words of my noble friend Lady Smith when we debated the report the SI has come out of, to end the previous structure. She emphasised that this

“is not our building. It belongs to the nation as the home of Parliament, and we have a responsibility as custodians of this building for future generations.”—[Official Report, 13/7/22; col. 1542.]

It is not about what we want but about protecting something that has been the symbol of democracy for hundreds of years. That is my starting point.

Whenever I hear the phrase “we want to avoid political interference”, I know that it will lead to political interference, as opposed to what this project needs more than anything: political buy-in. How do we ensure that when decisions are made, those with the responsibility for funding will support it? There is no point having grand plans if, at the end of it, people say that it is not affordable. We must have political buy-in—

The noble Lord said that it is not our building. Who, then, is the client? Who is responsible for deciding what happens if it is not the Members of this House and the other place? Who is the client?

We clearly are. I am not saying that we are not. I was hoping to make the case that our responsibility is not limited simply to what we want for now. Our responsibility is to look to future generations as custodians of this place and not simply managers. Even more importantly, we talk about accountability, but I want to keep using the words “political buy-in”, because at every stage of this project we have to ensure that there is consensus and political buy-in. When we start making party-political points, we will fail.

When the noble Baroness, Lady Doocey, was Chair of the Finance Committee and I was a member of it, we had regular discussions about this. There is perhaps a wider assumption in the world outside that this building needs restoration and that we are planning a restoration programme, but this building is like the Forth Road Bridge: we have not stopped restoring it. We have spent hundreds of millions of pounds a year to restore the fabric of this building. The problem, as we all know, is that when this building was built by the Victorians it was full of shortcuts and making do. Since then, we too have been making shortcuts and making do, which has added to the problem. A lot of the difficulties we face are from periods when we have made this innovation here and developed something else there. The mechanical and engineering problems we face downstairs did not start with the Victorians; they have been going on since the place was built. How do we address that?

I agree that we can all be frustrated by decisions being made without proper consultation. When I was on the Finance Committee, what I found most frustrating was trying to pin down the people making the decisions and make them responsible for those decisions. We do not make them accountable by taking responsibility away from them; we have to do the opposite. Making them responsible and accountable means that we, as the custodians, should set clear objectives and policies, so that when they are managing the programme, we can ask whether they have met those objectives and whether they have been successful. Those objectives may be cost objectives or other objectives.

The Clerk of the Parliaments has heard me say many times that I want to ensure that he can measure his activity against the clear policies we set. The arguments against decanting are about the big costs and that, in decanting, we are being too extravagant. Actually, one can make the case that decanting could save money. The QEII Centre was built some time ago and its own mechanics and electrics are in desperate need of renewal. That has been postponed, because we may move in and help it to do the work, so the process that we immediately think could cost a lot of money could save the public and the taxpayer a substantial amount of money. The issue is how we define those objectives and look at what we are doing as a whole.

One other thing that the noble Lord, Lord Forsyth, said was absolutely right. When we look at R&R, we must integrate properly what we are doing now in restoring this building. When I was on the Finance Committee, I thought, “Do we delay that to fit it in with R&R? Do we move forward on it? Is it taken into account in R&R?” All these issues have not been properly addressed.

We all have a responsibility—in particular, for the new governance structure, which I support. I should declare an interest, because I am going to be a member of the programme board; hopefully, I will be able to keep expressing the opinions I am expressing today. I will not be saying, “Tell me to make this decision”. I will be saying, “I want you to make the decision, but based on the clear policy objectives set by both the programme board and the two commissions”. That is what I hope to see but I am not fixed, by the way. If someone can persuade me that not decanting fully could work, I will go with it, but I like the idea that setting clear objectives, budgeting properly for them and having proper buy-in is a better way of doing this.

I support the regulations. We have made the decision anyway; we have already had a debate. I think that we will make this project more transparent with more accountability. I support that.

My Lords, I am grateful to all those who have spoken in this debate. I must say, as a fairly recent tenant of the office of Leader of the House of Lords—it is a tenancy—I am finding it interesting trying to find out why and where things happen. Having experienced the horror of a powerful earthquake, as I have in my life, I sometimes feel like the little boy trying to find the butterfly that flapped its wings to cause all these things to happen in the first place.

However, we are where we are. As all those who have spoken in the debate have said, this is an extraordinarily important building. It is a palace of the people. As Leader of your Lordships’ House, I submit that its most fundamental importance is that it provides a place, and should provide an environment, in which Members of Parliament can carry out their fundamental democratic duties to hold Governments to account, consider legislation and discuss both between themselves and across the two Houses how things should be accomplished in the best place and in the best way. However we take this project forward—having listened to this debate, I know that an enormous amount of expertise and thought has been and will be given to this, and I pay tribute to the members of the sponsor body—we must never forget that this is a House of Parliament, and one that cannot simply say, “We can send these people away”.

I note what was said by the noble Lord, Lord Best, whose work on this and contribution to our House have been outstanding. We cannot avoid interference in a House of Parliament, as it was put by parliamentarians. That is why we are here: to make judgments and choose priorities. It may well be true that talk of a decant—the noble Lord was right in what he said on this—did cause some people to be troubled by what was proposed. But I assure your Lordships that the commissions have asked for a wider range of options to decant as we go forward, with Members and staff from areas of the building affected by the works being considered. The House will have future opportunities to take decisions, and it will be informed by full analysis and wide consultation and engagement. As someone said—perhaps it was my noble friend Lord Forsyth—it is important that Members feel engaged and informed as we go forward. The word “transparency” was also used by the noble Baroness, Lady Doocey.

Work will continue. I assure the noble Lord, Lord Best, and others that the work that has already been done is still valuable and valued and will inform the decisions the commissions and the Houses make. It is true that the decision of the commission to review the programme, in March, incurred some cost. I am informed that it resulted in the delivery authority incurring £70,000 of expenditure, mainly associated with withdrawal of job offers and cancellation of supplier engagement events.

I repeat: a large amount of valuable and necessary work has already taken place on requirements, standards, intrusive surveys and all the material to which the noble Lord, Lord Best, referred. This is not wasted work; it is being used to understand the condition of the building and inform better decision-making, and it will be utilised in the revised programme. Having said that, I agree that value for money and ensuring we deliver for the British taxpayer must be key priorities, although measured against other needs, as we were advised by the noble Lord, Lord Newby.

The process for shortlisting the options currently being prepared by the delivery authority is designed to elicit the very clarity that a number of Members asked for—on scope, budget and timescale. The client board and the new programme board will consider all the options between now and the summer; then, both Houses will have the chance to debate and vote on the proposals at the end of 2023, on current expectations.

I am always nervous when my noble friend Lord Forsyth speaks, because I know it will not be easy, but that is right for your Lordships’ House. He asked about the total cost of the work to date. The sponsor body and delivery authority were created in May 2020. The actual and projected spend of the sponsor body for 2020-23 was £31.4 million, comprising £12.3 million in 2021 and an estimated spend of £19.1 million in the subsequent two years. The overall cost of the delivery authority and sponsor body together was £299 million. I reassure my noble friend that a lot of this work will be maintained and will inform the process going forward.

My noble friend and the noble Baroness, Lady Doocey, asked how the future situation will be different and how the costs will be properly scrutinised. I am assured that the scrutiny of costs will be robust, not least in the light of the response of both commissions to the emerging costs that the sponsor body presented at the start of 2022. The noble Lord, Lord Newby, is right to say that the programme must clearly remain in step with the expectations of both Members and the wider public.

Under the new system, there will be additional layers of scrutiny and challenge. The new in-house client team will be required to hold the delivery authority to account for the costs it presents, and the new head of that team is aware of the need to boost capability on that front to ensure it meets this important objective. Costs will be presented to the programme board, which will benefit from the input of parliamentary and external members with particular expertise in programmes of this scale and complexity. That expertise will provide additional challenge and scrutiny. Furthermore, all costs will be presented to the client board, comprised of the two commissions, ensuring valuable political leadership and the scrutiny of proposed expenditure. All these steps will be undertaken before estimates are submitted to the estimates commission. Taken together, they represent significant and robust controls.

My noble friend and the noble Baroness, Lady Doocey, challenged whether the House authorities would, frankly, have the capacity to manage the project and the structure that goes forward. I say openly as Leader of the House that I would certainly wish to see greater transparency and more advance advice in some of these things. My noble friend mentioned the New Palace Yard project. I also learned very recently about this proposal, at a time when it was already all agreed and after all the contracts had been let and decided. So I share my noble friend’s concern about some aspects of the decision- making—and, indeed, about the costs of a project of over £70 million value, of which the House of Lords’ share will be some £30 million, I believe.

Therefore, I share noble Lords’ concerns that we do not repeat those mistakes. There are important lessons to be learned. The Elizabeth Tower project was another project of this sort. I will not use strong language, but, if I might express a personal opinion, it was disappointing that a building so famous across the world should take four years to set right and put again in place. I do not think that many other countries with something so famous as Big Ben, as it used to be called, would have taken so long over it.

There are lessons to learn. My understanding, and the assurances I have been given, is that those lessons have been learned and will be absorbed.

I am very pleased that the Minister said that there will be more transparency. That is very welcome. I wonder whether he would consider how the figures could be more transparent, because the whole of the spending on both the delivery authority and the sponsor body has been shrouded in secrecy—not for those of us on those bodies, but for everyone else. It would be much better if there was a process—I am not suggesting what it should be—whereby vast expenses are much more open and transparent, so that we can see what the money is being spent on before it is spent.

My Lords, that is an important challenge. On the local authority that I once had the honour to lead, one of the first things I did was ensure that items of spending over a certain level were put on the web immediately, which was not then current practice. I am sympathetic to the aspiration. I am only Leader of the House of Lords; I am not commanding this process. As Leader of the House of Lords I will try to ensure that matters are as clear as they should be.

On the point about my noble friend not commanding the process—in many ways, I wish he was—there is a real problem, to pick up on what he said about the most recent project. It is a cultural thing. It is a culture of, “We are here to be done unto by people who know what’s best”, and consultation consists of telling us, “This is what is going to be done.” When you say that it is not such a good idea, the response is that it is all decided. If my noble friend can change that culture, it would make it so much easier to make progress.

My Lords, I fear that I have trodden too widely. This is not a debate about me personally—God forbid. Nor is it about the wider culture that my noble friend asserts exists. I have heard that said by others and I am conscious of it, and as a relatively new Leader of your Lordships’ House, as I said, I am extremely concerned that every Member of this House feels involved and engaged with all that is happening. To repeat my opening remarks, which were personal rather than from my draft, this before all else is a place where democratic work has to be done. Therefore, the role of Peers and Members should be pre-eminent in that.

On accountability, the process is being directed not by me but by the new in-house client team, in which I will have a part as a member of the commission on the client board, and it will be required to hold the delivery authority to account for the costs it presents. As I have said, the new head of the team is aware of the need to increase capability. The costs will be presented to the programme board in the way I have described. There will be extra expertise on it. All costs will be presented to the client board composed of the two commissions. I have described the process and will not go over it again. I am conscious of the noble Baroness’s challenge, and I am sure that those who read the debate will be too.

At this point, and with these regulations, we are simply seeking to wind up the sponsor body and launch the new ship, which I hope, despite the scepticism of noble Lord, Lord Best, who also expressed hope, will take us forward in an effective way, allowing Peers and Members to feel involved when considering options that will be presented next summer and which will come before both Houses for decision at the end of the year. We are just starting this process. I submit that we should allow and support it going forward. For all the proper scepticism that some noble Lords have expressed, I think the noble Lord, Lord Newby, is right to say that, ultimately, we have to do our duty to make sure that this building is fit for purpose and for future generations. That is the challenge.

It is clear that most who have spoken and others I have spoken to are committed to ensuring that this remarkable building, which we can proudly call our place of work, is protected for future generations. I hope that noble Lords will join me in supporting these regulations, which will come into force on 1 January 2023, as well as in supporting the delivery authority and those involved in programme going forward. All parties are represented on the boards involved, and I agree with the noble Lord, Lord Best, that there should not be politicisation of the process. It is important that those from all parts of both Houses should come together to ask challenging questions and to put themselves in a position to make decisions next year.

Motion agreed.