3 Administration Estimate: Capital
34. Capital expenditure relates primarily to investment
in the Estate (the Palace of Westminster and other buildings on
the Parliamentary Estate) and ICT. Most of the programmes are
carried out on a bicameral basis, with costs shared, using agreed
ratios, between the two Houses. Detailed financial planning for
2015/16 onwards is on-going and the figures for capital spending
below are liable to further revision.
35. As noted above, in additional to major works
in the Palace of Westminster (for example the on-going project
to refurnish the cast iron roofs), there is a major programme
to refurbish and optimise the buildings on the Northern Estate
prior to the commencement of the programme for Restoration and
Renewal of the Palace of Westminster. Work on 53 Parliament Street
will be completed in 2014 and work on 1 Cannon Row is being planned.
In July 2014 the Commission agreed in principle to further works
on Norman Shaw North, Norman Shaw South, 1 Parliament Street and
1 Derby Gate that will start in 2016/17. The buildings will need,
in turn, to be vacated during the works, and alternative accommodation
has been secured for House staff to enable Members and their staff
to be temporarily located in 7 Millbank when necessary.
36. As a result, capital spending on accommodation-related
projects is expected to increase from £13 million in 2015/16
to £66 million in 2016/17 and over £100 million per
annum in the two years thereafter. There are also additional resource
costs (for example, the running costs of the decant accommodation)
and non-cash charges. Due to heritage, security and other factors,
the cost of works is likely to exceed the resulting increase in
the book value of the buildings, and this difference will be charged
to the resource budget in the form of impairment charges. As noted
above, the Commission has agreed that these non-cash charges should
be funded outside the financial remit.
37. The overall path for capital expenditure is currently
expected to be:
Table 3: Medium Term Financial Plan 2015/16 to
2018/19: Capital
| 2015/16
£m
| 2016/17
£m
| 2017/18
£m
| 2018/19
£m
|
| Capital Estimate/plan |
44.3 | 120.1
| 159.3 | 169.6
|
| 
