Restoration and Renewal: A new approach to governance arrangements

Preparing for restoration and renewal

A major refurbishment programme is needed to protect and preserve the heritage of the Palace of Westminster and ensure it can continue to serve as home to the UK Parliament.

In 2018, both Houses of Parliament agreed the work was necessary and that it should be overseen by a statutory Sponsor Body and undertaken by a separate Delivery Authority.

The Parliamentary Buildings (Restoration and Renewal) Act 2019 set up the two bodies and defined their roles and governance arrangements. The Sponsor Body included MPs, members of the House of Lords and external members.

From 1 January 2023, the Sponsor Body was abolished and its functions were transferred to the Corporate Officers of the two Houses of Parliament (the Clerk of the House of Commons and the Clerk of Parliaments).

The Act requires that before building work on the Palace can begin, the two Houses have to approve a scheme prepared by the Sponsor Body (now the Corporate Officers) and the funding for the scheme.

The Sponsor Body oversaw the R&R Programme. It had a small staff team and the Sponsor Board, which included parliamentarians and set the strategic direction of the Sponsor Body. Following its abolition, staff transferred to a new joint department of both Houses of Parliament. The Commissions of the two Houses of Parliament (meeting as the Client Board) and a separate Programme Board make decisions and provide advice, respectively for the Programme.

Concern about the programme

The abolition of the Sponsor Body followed concerns from the Commissions of both Houses of Parliament about the costings and duration of the scheme of works.

In January 2022, the Commissions of the House of Lords and the House of Commons received an initial assessment of the cost and schedule of the Restoration and Renewal project (PDF) from the Sponsor Body.

The House of Commons Commission expressed concern about the cost and schedule presented in the initial assessment (PDF), estimated to be £7 billion to £13 billion. The House of Lords Commission expressed concern about the potential overall length of the decant period (PDF) and asked for options to shorten it to be explored. The House of Commons Commission suggested replacing the Sponsor Body with a new department of both Houses.

In February 2022, the Lords Commission agreed to replace the Sponsor Body (PDF), subject to advice being taken on what should replace it.

In March 2022, the two Commissions met jointly and agreed to seek independent advice and assurance on a different approach to the Restoration and Renewal (R&R) Programme.

In a joint statement, the Commissions confirmed their commitment to preserve the Palace of Westminster. They set out the parameters that would guide their new approach.

A new approach: The Client Team

On 14 June 2022, the House of Lords Commission and the House of Commons Commission published a joint report, Restoration and Renewal of the Palace of Westminster – a new mandate (PDF). It set out their proposals for a new mandate for the R&R Programme and a new governance structure to oversee the programme definition phase.

The two Commissions concluded that the Sponsor Body should be abolished and brought “in-house”. It would be replaced by a joint department of both Houses (the Client Team). The head of the Client Team would report to the Clerks of the two Houses of Parliament.

It would be overseen by a Client Board – the two Commissions meeting together – and a Programme Board, drawn from the Commissions, senior managers in both Houses and independent members with appropriate expertise.

The governance framework would be in place while the project is developed but the Commissions acknowledged a different governance structure may be required when the works are taking place.

The two Commissions also agreed that the new programme of works should be designed for uncertainty. It should also be better integrated into existing work on the structure and maintenance of the Palace.

A Review Team was appointed to advise and provide assurance on options for replacing the Sponsor Body and the new approach to the works. It endorsed the parameters the two Commissions published in March. But it recommended that a clear long-term vision of the “end-state” of the programme and further evaluation criteria should be developed.

The end-state vision should not be completely fixed but it should allow for periodic review of the project.

Decisions for the two Houses

The two Houses were first asked to endorse the recommendations of the two Commissions and approve the establishment of the Client Team (as a joint department of the two Houses). The two Houses agreed to this in July 2022:

• The House of Commons debated and agreed the report on 12 July 2022
• The House of Lords debated and agreed the report on 13 July 2022

The two Houses were subsequently asked to approve a statutory instrument that abolished the Sponsor Body and transferred its functions to the Corporate Officers of the two Houses of Parliament. The draft Parliamentary Works Sponsor Body (Abolition) Regulations 2022 were approved by the House of Commons on 13 December 2022 and by the House of Lords on 14 December 2022, following debates on earlier days.

The Parliamentary Works Sponsor Body (Abolition) Regulations 2022 (SI 2022/1360) came into force on 1 January 2023.

Creating the new structure

The Client Board met for the first time on 17 October 2022. It agreed its terms of reference.

• The R&R Client Board, made up of members of both Houses’ Commissions, is responsible for making critical strategic choices and recommendations relating to the restoration and renewal of the Palace of Westminster
• At its first meeting, it discussed and agreed that “the terms of reference should be amended to clarify that the R&R Programme Board made recommendations to the R&R Client Board, and the R&R Client Board was the decision making body” (PDF)

The Restoration and Renewal (R&R) Client Team was established in January 2023 as a Joint Department of both Houses, to act as the client on behalf of both Houses for the restoration and renewal of the Palace of Westminster.

• Its role is to support the Programme’s governance bodies (R&R Client Board and R&R Programme Board) to set the strategic direction of the Programme and to produce and gain approval for a business case for the delivery of the Programme.

The Programme Board met for the first time on 27 February 2023. Its membership was proposed by the Commissions of the two Houses of Parliament.

• It has day to day oversight, and is responsible for making critical strategic choices and recommendations, relating to the restoration and renewal of the Palace of Westminster to the R&R Client Board.

The Corporate officers of the two Houses, the Clerk of the House of Commons and the Clerk of the Parliaments, have taken on the statutory functions of the abolished Sponsor Body.

Further information on the R&R Programme

Previous Library research briefings provide more detail on the background to the R&R Programme; the passage of the legislation that established the current governance framework; and the developments that have taken place since the Act was passed:

• Restoration and Renewal of the Palace of Westminster (December 2018)
• Parliamentary Buildings (Restoration and Renewal) Bill 2017-19 (September 2019)
• Restoration and Renewal - developments since October 2019 (April 2022)

A further Library research briefing reviews the way options for the programme were developed after the Sponsor Body was abolished:

• Restoration and Renewal: Developing the strategic case