§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer if he will make a statement on the project to redevelop the Treasury building. [11768]
§ Mr. JackThe Treasury has now taken another step forward in this project by agreeing commercial heads of terms with Exchequer Partnership plc. This completes a significant milestone in the negotiation process, and enables both parties to proceed with the project in principle, subject to final contract. That contract, known as the development framework agreement, is now being drafted.
The Treasury is likely to occupy around a third of the redeveloped building. The intention is that all essential building works will be completed in advance of occupation, and that the Treasury will pay as and when its accommodation needs are delivered to specified standards. The accommodation will all be towards the western end of the building which will enable the Treasury to occupy purpose-built, modern accommodation within the existing facade. It is for Exchequer Partnership plc to decide how best to utilise the non-Treasury space in the redeveloped building.
It is presently looking at various options including flats at the western end, and a hotel and/or additional offices at the eastern end. Other issues will necessitate satisfying the authorities on a wide variety of matters, including planning permission and listed building consent, and will be subject to security considerations. Further details will be available at DFA stage.
The present timetable, subject to planning permission and therefore necessarily tentative, remains for the Treasury temporarily to vacate the building towards the end of 1998, and to re-occupy part of it in the middle of 2001.