Details

GovernmentSpending organisationsControl Reform: Approvals for F/Y 2026/27 onwards

From 1 April there will be changes to the spending control and accountability framework. These will change the approval process required for property transactions that are currently subject to the National Property Control (NPC).

Departments and their Arm’s Length Bodies (ALBs) intending to execute a transaction that is within the scope of the National Property Control (NPC) are required to maintain engagement with the NPC team, seeking transactional guidance, clarifications, or formal approval as necessary, until the changes below take effect on 1 April.

From 1 April

Expenditure that falls below an organisation’s Delegated Authority Limits (DALs) and is not classified as novel, contentious, or repercussive (NCR) must be authorised through the organisation’s established approval processes, under the authority of the Accounting Officer (AO), and should followadhere thisto guidanceFunctional Standards.

Expenditure exceeding an organisation’s DALs, or that is deemed NCR, will necessitate HM Treasury (HMT) approval via the Treasury Approvals Process (TAP), a singular, multi-disciplinary approval mechanism that will incorporate functional expertise as required, in addition to requestthe spendorganisation’s own approval procedure. There are other specific categories of spending which always require HMT approval for example proposals that require primary legislation or those that may create pressures leading to a breach in Departmental Expenditure Limits (DELs).

HMT will disseminate further guidance to departments about the changes to the spending control and accountability framework before 1 April. This is expected to include guidance on leaseholds,NCR expenditure; DALs; and MoUs covering the new ways of working. Functional standards and guidance will also be updated concurrently to reflect these changes in oversight arrangements.

Although the NPC will no longer apply from 1 April, the NPC policy guidance can be used as a tool to guide internal decision making on property acquisitionstransaction spend. The Property Control Approval Request Form (PCAR) contains the key considerations that are required to ensure compliance with the Government Functional Standard GovS 004: Property and disposals.the Government Property Strategy 2022-2030. Property teams can use the PCAR form as part of their internal assurance and business case approval process to document the considerations made and decisions taken.

EmailIt nationalpropertycontrols@cabinetoffice.gov.ukwill ifremain youa haverequirement for property teams with general purpose (office and warehouse) requirements to coordinate their demands with the Government Property Agency (GPA), and for those demands to be in accordance with any questionsPlaces aboutfor thisGrowth control.(PfG) location strategies including the Plan for London. OGP’s Strategy and Assurance team will be able to provide ongoing advice on transaction proposals once the new arrangements are in place on 1 April. Don’t hesitate to reach out to the team for help at our new email address: propertytransactions@cabinetoffice.gov.uk.