UK Holocaust Memorial and Learning Centre (UKHM&LC): accounting officer assessment
Updated 30 October 2024
Background and context
1. The commitment to build a striking and prominent national Memorial to the Holocaust was given by the then Prime Minister, with cross-party support, in 2015. It remains a Conservative manifesto commitment.
2. On 29 July 2021, following a Public Inquiry in 2020, the planning application to build the UKHM&LC in Victoria Tower Gardens (VTG) Westminster was approved by the Housing Minister. That decision has now been challenged under s.288 of the Town and Country Planning Act 1990 (a statutory challenge). A hearing is set for 22-23 February 2022.
3. In May 2019 an Outline Business Case (OBC) to construct the UKHM&LC costing £102m was approved. The current Full Business Case (FBC) for construction and pre-opening expenditure, forecasts base costs of £99.7m plus contingency. Contingency has been increased to reflect project risks.
4. There is a separate business case to establish an Operating Body to run the UKHM&LC. It proposes a preferred option of establishing a new Arms’ Length Body (ALB), primarily to ensure independence of identity and purpose. The indicative gross operating costs are £6-8m per annum. Entry will be free in perpetuity in line with the then Secretary of State’s announcement in January 2021.
5. A Treasury Approval Point (TAP) took place on 8th September 2021 for both business cases and follow-up discussions are ongoing ahead of HMT advising their ministers.
Assessment against the accounting officer standards
Regularity
Common Law legal powers, as stated by the Ram doctrine, are being used to construct the UKHM&LC.
Funding the operation of the UKHM&LC constitutes a new activity and primary legislation is required to allow DLUHC to fund the Operating Body. Cabinet Office and Treasury approval is required to implement the preferred option of establishing a new ALB as the operating body.
The challenges presented by the statutory review under s.288 of the Town and Country Planning Act 1990 are noted.
Necessary legal arrangements between DLUHC and DCMS (who own the freehold of VTG) and The Royal Parks (who manage VTG) will be put in place to support the construction of the Memorial and Learning Centre and its subsequent operation.
Appropriate arrangements are needed in order that DLUHC can accept the expected £25m of private donations via the Holocaust Memorial Charitable Trust (HMCT), an independent charity. The ambit for DLUHC expenditure has been amended to reflect this need..
Contingency has been increased to reflect the unique nature of the programme and the significant risks it carries as far as possible. The operating body is not envisaged to be self-sustaining, although some funding is expected from private donations. The current forecast for the programme and indicative operating costs are judged affordable at this stage. The programme awaits Treasury approval of the FBC.
As required by Section 149 of the Equality Act, an equality impact assessment of the programme has been carried out, with positive outcomes.
Noting residual risks, my assessment is that the regularity test is satisfied.
Propriety
The management and governance arrangements have been developed in consultation with, and are regularly reviewed by, the Infrastructure Projects Authority (IPA). An IPA review in May 2021 concluded the programme was good to proceed subject to a number of recommendations. The programme is now on the GMPP, which provides assurance in relation to the sustainability and feasibility.
My assessment is that the propriety test is satisfied.
Value for Money
There is a strong focus on managing programme costs within the parameters of the agreed design and the need to offer a high-quality result fitting to the subject matter. £25 million of the cost is expected to be raised from charitable donations, reducing the overall cost to the taxpayer.
Without income from entry fees, the Operating Body will be expected to generate funding from charitable donations.
My assessment is that the vfm test is satisfied.
Feasibility
There are a number of challenges and risks associated with constructing the UKHM&LC, which are likely to have an impact on the preferred timetable. The current legal challenge is one such risk; other potential causes of delay to completion include significant archaeological finds, and material and labour shortages. The opening date can be delayed as a mitigation of these risks, but extended delays would attract criticism, especially if completion is delayed beyond the point that holocaust survivors are able to witness it.
Noting residual risks, my assessment is that the feasibility test is satisfied.
Conclusion
The UK Holocaust Memorial and Learning Centre programme is unique and carries significant risks. However, I have assessed that the programme meets the requirements of each of the four Accounting Officer tests. As the Accounting Officer, I considered a UK Holocaust Memorial and Learning Centre assessment on 3 February 2022 and approved it. This AO Assessment was approved before the judgment following the Statutory Review was returned and the subsequent application for appeal declined. An updated AO Assessment will be produced following the conclusion of the legal process.
The delay between completion of the assessment and publishing this summary was to allow time for the legal challenges to conclude.
I have prepared this summary to set out the key points which informed my decision. If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised summary, setting out my assessment of them.
This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons; and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.
Jeremy Pocklington
30 August 2022