1.2 MOD recognised three principal reasons for the need to redevelop Main Building. These were:
■ The poor physical state of the building. Most of the infrastructure in Main Building was some 50 years old and no longer matched the business needs of a modern corporate headquarters. Virtually every aspect of the building needed attention, and the building as a whole was becoming increasingly unsafe; it did not, for example, comply with fire regulations. It was also expensive and inefficient to maintain;
■ The layout of the building which mitigated against efficient working practices and good morale; and
■ The need to increase the above ground capacity (from 2,800 staff to 3,300) to allow the rationalisation of Head Office accommodation.
1.3 The PROSPECT report of 1990 recommended changes in working practices and systems to improve staff efficiency in Main Building. This was emphasised by the Defence Costs Study of 1994, which stressed that for the effective and efficient functioning of MOD's Head Office, staff needed good management, good tools, and a working environment, which facilitated informal group working and contributed to a positive mental attitude. MOD had also planned to reduce the number of central London Head Office staff from 12,700 in 1990 to 5,200 by 1995. The Defence Costs study envisaged further reductions in Head Office staff and that those remaining, including Defence Intelligence staff, should be accommodated in Main Building and the Old War Office, once modernisation of Main Building was completed. This would allow MOD to dispose of other London buildings. This conclusion was endorsed in the Strategic Defence Review 1997.