Securing wider business benefits

9. Accommodation running costs in central London for 2001-02 had amounted to £33 million, around £6 million less than the annual cost of the PFI deal. The cost of running the existing estate was rising and the Home Office expected it to go up next year, depending on the level of maintenance required. The Home Office therefore felt that the PFI deal offered value for money, compared with what it would have cost to remain in the existing properties.19

10. In the longer term, realisation of wider business benefits will be key to the success of the project. The Home Office have identified a business requirement to deliver an up-to-date, flexible workplace that provides an efficient and effective IT platform and the range and quality of facilities expected of an employer of high calibre staff in central London.20 The Home Office said that its headquarters staff deliver service to the public by providing effective policy and programmes rather than delivering services directly to customers. The main benefit of the new building was a modern space which was more flexible, leading to better team working and better results.21

11. The Home Office was not concerned that increasing the capacity of the new building by 500 would lead to cramped conditions for staff, with implications for morale. Although the space per person was less than for other headquarters buildings such as the Ministry of Defence, these buildings were necessarily more generous because of their historical design (Figure 4).22 Space per person was also higher in the buildings the Home Office currently occupies. The Home Office felt, however, that at 15.6m2 per person, the new building would still be an improvement over the existing conditions because the Marsham Street design made more efficient use of space along with improved amenities for staff.23

Figure 4: Space per person in 2 Marsham Street is lower than public

19 Q 2

20 C&AG's Report, para 1.8

21 Q 49

22 Qq 36-37

23 Q 37; Ev 14