Contingencies (Underspend)

Oral Answers to Questions — Public Accounts Commission – in the House of Commons at 10:30 am on 18 June 2009.

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Photo of Philip Hollobone Philip Hollobone Conservative, Kettering 10:30, 18 June 2009

What the Public Accounts Commission's most recent assessment is of the likelihood of an underspend on contingencies in the National Audit Office estimate for 2009-10, as referred to in HM Treasury's note to the commission of 10 March 2009.

Photo of Edward Leigh Edward Leigh Chair, Public Accounts Committee, Chair, Public Accounts Committee

When the commission took evidence on the National Audit Office resource estimate on 17 March 2009, the NAO told us that it hoped to be able to surrender some of the contingency included in the revised budget for the repair and refurbishment of its headquarters, and it has confirmed that that remains the position.

Photo of Philip Hollobone Philip Hollobone Conservative, Kettering

I thank my hon. Friend for his helpful answer. The NAO estimate for 2009-10 is 3 per cent. above that of the previous year at a time of negative inflation. Clearly, it aspires to achieve cost reductions across its range of activities. When will it be made clear to this House that those cost savings might begin to be reflected in the total support that the NAO seeks from Parliament?

Photo of Edward Leigh Edward Leigh Chair, Public Accounts Committee, Chair, Public Accounts Committee

For every £1 of taxpayers' money that the NAO spends, it saves £9 for the taxpayer. Considerable extra work has been given to the NAO by the Public Accounts Commission. My hon. Friend is asking about the contingency fund and expenditure on the NAO's new headquarters. It tells me that it is seeking to achieve a £1 million underspend against a revised project budget, and the project will be delivered on time in November. It is a success story that we should be proud of.