Property spend controlcontrols

ReformsSpending Control Reform: Approvals for F/Y 2026/27 onwards

From 1 April there will be changes to the public spending control and accountability framework

Atframework. BudgetThese 2025will change the governmentapproval announcedprocess significantrequired reformsfor property transactions that are currently subject to the publicNational spendingProperty controlControl (NPC).

Departments and accountabilitytheir framework.Arm’s FromLength 1Bodies April(ALBs) 2026intending to execute a transaction that is within the spendingscope controlsof previouslythe delegatedNational byProperty HMTControl (NPC) are required to centralmaintain functionsengagement havewith beenthe withdrawn.NPC Theteam, propertyseeking spendtransactional controlguidance, (NPC)clarifications, isor noformal longerapproval inas operation,necessary, anduntil relatedthe guidancechanges hasbelow beentake withdrawn.effect on 1 April.

BelowFrom DAL1 expenditureApril

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 adhere to Functional Standards.Standards.

Above DAL expenditure

Expenditure exceeding an organisation’s DALs, or that is deemed NCR, will necessitate HM Treasury (HMT) approval via the Treasury Approvals Process (TAP),(TAP), a singular, multi-disciplinary approval mechanism that will incorporate functional expertise as required, in addition to the organisation’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).

FurtherHMT 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 NCR expenditureexpenditure; isDALs; containedand withinMoUs HMT’scovering Managingthe Publicnew Money.

Propertyways transactionof adviceworking. Functional standards and guidance will also be updated concurrently to reflect these changes in oversight arrangements.

Although the propertyNPC spendwill controlno policylonger guidanceapply hasfrom now1 beenApril, withdrawn,the itNPC policy guidance can be used as a tool to guide internal decision making on property transaction spend. The policy guidance together with the Property Control Approval Request Form (PCAR) containcontains the key considerations that are required to ensure compliance with the Government Functional Standard GovS 004: Property and the Government Property Strategy 2022-2030. Property teams can use the policy guidance and PCAR form as part of their internal assurance and business case approval process to document the considerations made and decisions taken.

It will remain a requirement 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 Places for Growth (PfG) location strategies including the Plan for London. OGP’s Strategy and Assurance team canwill be able to provide ongoing advice on transaction proposals.proposals Pleaseonce contact the teamnew forarrangements helpare atin ourplace newon email1 address:April. propertytransactions@cabinetoffice.gov.uk.

Documents

PropertyDon’t spendhesitate controlto policyreach guidanceout v1.4

Propertyto spendthe controlteam approvalfor requesthelp format (PCAR)our new email address: propertytransactions@cabinetoffice.gov.uk.