Transparency data

UK Holocaust Memorial and Learning Centre: revised accounting officer assessment

Updated 6 March 2024

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans to start or vary major projects, and then assess whether they measure up to the standards set out in Managing Public Money (MPM). From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of projects within the Government’s Major Projects Portfolio.

Background and context

Building a striking and prominent national Memorial to the Holocaust was committed to in 2015 by the then Prime Minister and it remains a manifesto commitment. In July 2021, the planning application to build the UK Holocaust Memorial and Learning Centre (UKHM&LC) was approved by the Housing Minister. However, a legal challenge to the Minister’s decision was launched and a Statutory Review Hearing followed. In February 2022, our Accounting Officer (AO) assessment outlined that we were awaiting the Statutory Review Hearing and provided a full assessment of the programme. My predecessor was content to proceed. Since then, there have been various developments:

• The legal challenge was successful and the High Court quashed Planning Consent for the Memorial for reasons which relate to Section 8 of the London County Council (Improvements) Act 1900 (“1900 Act”). Our applications to appeal were unsuccessful. Therefore, further legislation is required to remove the planning obstacles presented by the 1900 Act, and this is being taken forward through the Holocaust Memorial Bill, which has passed the first reading stage in the House of Commons (where it began its passage).
• The legal challenges have led to delays to the programme. Along with inflationary pressures, this has led to a significant increase in costs. A revised Full Business Case (FBC) has been drafted to include updates to timings and costs.
• We became aware of a technical spending power concern that made the level and scope of spending non-compliant with MPM due to there being no specific statutory power to fund the memorial. We therefore have included a suitable expenditure provision, as a matter of propriety, within the Holocaust Memorial Bill. As continuing spend ahead of the Bill achieving Royal Assent would be non-compliant with MPM, in February 2023 I requested and was provided with a Ministerial Direction to allow spend to continue.

Assessment against the accounting officer standards

Regularity

Planning permission needs to be in place ahead of commencing construction of the Holocaust Memorial. Primary legislation is required before planning permission could be granted on the current site (Victoria Tower Gardens), because we need to, in effect, disapply the relevant sections of the 1900 Act. In addition, to ensure MPM compliance, a specific expenditure power needs to be obtained to build and fund the Memorial. The Holocaust Memorial Bill (Bill), which includes clauses to address these points was introduced on 23rd February 2023.

Until Royal Assent of the Bill, expenditure on the programme is incurred in reliance on the Secretary of State’s common law powers and on the Supply and Appropriation Act. Programme spend is covered by departmental estimates and the ambit. Costs are currently deemed affordable, subject to internal approvals and securing of budgets. My assessment is that the regularity test is satisfied.

Propriety

In seeking a Ministerial Direction for spend that is technically improper (ahead of Royal Assent of the Bill), the department undertook the recommended action in MPM in the absence of being able to comply with spending limits contained within. Non-compliant spend to date will be declared as such at year end audit. There are no other propriety concerns.

I therefore deem the Propriety test met, other than where we have obtained a Ministerial Direction for spend that is technically improper.

Value for Money (VfM)

The programme costs have increased significantly from a range of £99.7 million plus contingency at FBC in July 2021 to a current view of £138.8 million plus contingency. Cost increases are primarily due to delays in securing planning permission and the economic climate, as well as recalculated costings arising from our change in construction cost managers. Contingency has also been increased to reflect current assessments of known risks and Optimism Bias. In addition, the expected gross operating costs of UKHM&LC have increased from £6-8 million in July 2021 to £6.5 to £8.5 million to reflect inflation.

Considering the monetised benefits in relation to updated costs, the BCR has reduced to 0.9. The Green Book allows for BCRs below 1 to be considered VfM where there is good evidence or arguments for the non-monetised benefits being sufficiently large to close the gap. It has been assessed that the strategic and societal benefits of having a prominent national Memorial to the victims of the Holocaust and a Learning Centre which will provide important educational offerings, ensure the Programme is still VfM.

The programme is unique and carries significant risks. Contingency has been assessed to reflect these as far as possible, but the programme will continue to undertake assurance work to ensure we maintain the most accurate view of the BCR and costs.

My assessment is that the Value for Money test is satisfied.

Feasibility

The programme continues to undertake activities to improve feasibility and assurance. The expected opening date however is dependent on planning processes allowing the commencement of construction. Estimated opening dates have always been tentative and expressed with appropriate caveats however delays may still attract criticism as there will be a diminishing number of Holocaust survivors to see the opening. Any significant delay during construction is likely to impact the opening date and costs. Key risks to this are significant archaeological finds, and material and labour shortages. There are also risks of delays in establishing an operating body for UKHM&LC and contingency plans are being put in place to mitigate these.

Noting the residual risks, my assessment is that the feasibility test is satisfied.

Conclusion

The UK Holocaust Memorial and Learning Centre programme is experiencing delays in planning processes at a time of significant inflationary pressure. Noting the programme risks balanced with the benefits to society once completed, I have assessed that the programme meets the requirements of each of the four Accounting Officer tests. As the Accounting Officer for the Department of Levelling Up, Housing and Communities I considered this assessment of the UK Holocaust Memorial Programme and approved it on 25 April 2023.

I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised summary, setting out my assessment of them.

This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Sarah Healey

26 June 2023