Buckingham Palace M&E upgrade ‘well managed’, says NAO

A £369m decade-long scheme to update Buckingham Palace’s essential systems has been “well managed” to date and “demonstrates good practice in numerous areas”, according to a National Audit Office (NAO) report.

The Buckingham Palace Reservicing programme, which began in 2017, aims to reduce the risk of fire and flood by updating essential services, alongside improving public access and environmental sustainability.

It includes the replacement of 3.5km of electric cabling, heating systems, lifts and lavatories. The Royal Household estimates that 82% of operational improvements, which include an accessible entrance ramp, are now complete. Works are scheduled to finish in 2027.

The programme is funded through an uplift to the Sovereign Grant, a taxpayer-funded settlement paid annually by the Treasury to fund the monarch’s official duties.

‘Important lessons for heritage’

The NAO said the overall programme remains within budget. Nonetheless, some individual projects have increased in cost and have taken longer to complete than expected. For example, the East Wing was completed over two years later than planned and, as of March 2024, it was 78% over its estimated cost.

The spending watchdog explained that some of the reasons for cost increases and delays were outside the Royal Household’s control, including Covid-19, inflation and supply chain difficulties. However, other challenges, such as the discovery of more asbestos and structural damage than expected (common in heritage programmes) could have been foreseen.

NAO’s head, Gareth Davies, said: “Updating decades-old plumbing, heating and electrics, as well as adding new lifts and lavatories in one of the UK’s most famous buildings is a significant undertaking, which has been well handled to date.

“The Household worked hard to engage stakeholders and the Palace has remained operational throughout. There are plenty of important lessons here for heritage projects and those taking place in a live environment.

“While risks remain as the programme draws to a close, if these continue to be managed effectively, the result should represent good value for money.”

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