Parliamentary Buildings (Restoration and Renewal) Act 2019

Commentary on provisions of the Act

Section 1: "The Parliamentary building works"

9. Subsection (1) defines the Parliamentary building works to which the Act relates:

• Subsection (a) is concerned with the works to restore the Palace of Westminster.
• Subsection (b) provides that the House Commissions (the supervisory bodies of the administrations of both Houses of Parliament), with the agreement of the Sponsor Body and the Delivery Authority, can designate other works relating to the Parliamentary Estate to fall within the Parliamentary building works for the purposes of this paragraph.
• Subsection (c) includes works which are connected to the works at paragraph (a), which relate to land not forming part of the Parliamentary Estate when Section 1 comes into force and do not come within subsection (b). However, works that would otherwise fall within subsection (c) will not be treated as such if they are excluded from this paragraph by the House Commissions

10. The works described under subsection 1(a) and 1(c) are defined as the "Palace restoration works".
11. As suggested above, either or both Houses of Parliament may have to re-locate from the Palace of Westminster whilst the Parliamentary building works are carried out. Subsection (3) requires those exercising functions under the Act to do so with a view to enabling both Houses of Parliament to return to the Palace of Westminster as soon as is reasonably practicable. This is in line with the resolutions agreed by both Houses on 31 January and 6 February 2018 respectively.

Section 2: The Parliamentary Works Sponsor Body

12. Section 2 establishes the Sponsor Body. Subsection (1) provides that the Sponsor Body will have overall responsibility for the Parliamentary building works. Subsection (2) makes provision concerning the Sponsor Body’s duties. In particular, subsection (2)(a) requires the Sponsor Body to determine the strategic objectives of the Parliamentary building works, and subsection (2)(b) requires the Sponsor Body to make strategic decisions relating to the carrying out of those works. Subsection (2)(i) requires the Sponsor Body to promote public understanding of the purposes of the R&R Programme. The vision and strategic themes of the R&R Programme can be found on the Programme’s website here. Subsection (3) requires the Sponsor Body to consult with members of both Houses when performing its duties under subsection 2(a) and (b) in relation to the Palace restoration works. Further information as to this requirement is set out in Section 5 of the Act. Subsection (4) requires the Sponsor Body, when preforming its duties under subsection 2(a) and (b), to make arrangements to seek the views of people employed in or for the purposes of either House of Parliament, people working for members of either House of Parliament (whether or not for payment), and members of the public.
13. In exercising its functions, the Sponsor Body must have regard to certain matters. These are set out in Subsection (5).
14. Further provision about the Sponsor Body is made in Schedule 1.

Section 3: The Delivery Authority

15. Section 3 requires the Sponsor Body to form a Delivery Authority. The Delivery Authority will be a company limited by guarantee, and the Sponsor Body will be its sole member and guarantor. Pursuant to subsection (4), the Delivery Authority’s duties are to formulate proposals relating to the Palace restoration works and to ensure the operational delivery of the Parliamentary building works, both in line with the Sponsor Body’s requirements. The Delivery Authority may do whatever it considers necessary in order to carry out its duties, provided it acts in accordance with Sponsor Body’s requirements, with the agreement that it enters into with the Sponsor Body under Section 4, and with its memorandum and articles of association. For example, it is expected that the Delivery Authority will be free to decide on what it considers to be the most appropriate procurement strategy, and what form of commercial contracts it will use. Further provision is made about the Delivery Authority in Schedule 2.
16. Subsection (6) requires the Delivery Authority to have regard to the same matters as the Sponsor Body does under Section 2(5) when performing its duties.

Section 4: Relationship between the Sponsor Body and the Delivery Authority

17. Section 4 makes provision concerning the relationship between the Sponsor Body and the Delivery Authority. Subsection (1) provides that the Sponsor Body and the Delivery Authority must enter into an agreement called "the programme delivery agreement". That agreement will include a statement of the strategic objectives of the Parliamentary building works as determined by the Sponsor Body under Section 2(2)(a). It will also set out how the Sponsor Body will review the Delivery Authority’s activities, and include provision about when and how the Sponsor Body may intervene in relation to the Delivery Authority’s performance of its duties.
18. Subsection (2) is self-explanatory.
19. Subsection (3) allows the programme delivery agreement to contain other provisions about the Parliamentary building works, not specified under subsection (1), if the Sponsor Body and the Delivery Authority consider it appropriate.
20. Subsection (4) provides that if the Sponsor Body and Delivery Authority cannot agree on the matters to be included in the programme delivery agreement they may refer their differences to the House Commissions.
21. Subsection (6) provides that the House Commissions’ decision in relation to any such disagreement will be binding on the Sponsor Body and the Delivery Authority, and the programme delivery agreement will be treated as reflecting that decision.
22. Subsection (7) makes provision for variation of the programme delivery agreement, by agreement between the Sponsor Body and the Delivery Authority.

Section 5: Consultation strategy

23. Section 5 provides that the Sponsor Body is required to develop a strategy for consulting members of both Houses for the purposes of Section 2(3) (see paragraph 12). Subsection (2) provides that the strategy must be published within 8 weeks of the commencement of these provisions. Subsections (3) and (4) require the Sponsor Body to keep the strategy under review, revise as appropriate, and publish any revised version.

Section 6: Relationship between the Sponsor Body and Parliament

24. Section 6 makes provision regarding the relationship between the Sponsor Body and Parliament. Subsection (1) provides that the Sponsor Body, the Corporate Officer of the House of Commons and the Corporate Officer of the House of Lords ("the Corporate Officers") must enter into an agreement containing provision relating to the relationship between the Sponsor Body and Parliament. Such an agreement will be known as the Parliamentary relationship agreement.
25. Subsection (2) sets out the kind of matters that the Parliamentary relationship agreement may contain. These include provisions about the buildings to which the Parliamentary building works relate, and consultation and co-operation between the Sponsor Body and the Corporate Officers. Subsection (3) provides that the agreement may be varied by agreement between the Sponsor Body and the Corporate Officers.

Section 7: Parliamentary approval for works and funding

26. Section 7 provides that the Sponsor Body must seek approval by resolution of each House of Parliament, firstly, for the Delivery Authority’s proposals under Section 3(4)(a) in respect of the design, cost and timing of the Palace restoration works; and, secondly, for the phase two cost of the Parliamentary building works from the time Parliamentary approval is obtained.
27. Other than preparatory works, no substantive Palace restoration works may be carried out before such Parliamentary approval has been obtained. Preparatory works are likely to include matters such as preliminary design work.
28. If Parliamentary approval is given, "phase two" will begin. The approval resolution will specify the overall funding limit in respect of all of the phase two Parliamentary building works. "Phase one" is defined in Schedule 4 (see paragraph 87) as the period from when any provision of section 1 comes into force until the approval resolution. "Phase two" is the period running from Parliamentary approval until completion of the Parliamentary building works.
29. Subsection (4) provides that the Sponsor Body must seek further Parliamentary approval in two instances. First, before the Sponsor Body proceeds with proposals (formulated by the Delivery Authority) in relation to the Palace restoration works which it considers would significantly affect the design or timing of those already approved. Second, where the Sponsor Body considers that the amount of funding Parliament has already approved in relation to phase two is insufficient.

Section 8: The Parliamentary Works Estimates Commission

30. Section 8 establishes the Parliamentary Works Estimates Commission. Further provision in respect of the Estimates Commission is contained in Schedule 3 of the Act.

Section 9: Funding

31. Section 9 provides that the Sponsor Body will be funded out of money provided by Parliament. Schedule 4 contains further provision about the mechanisms by which such funding is provided, including review of the Sponsor Body’s annual estimates both by the Estimates Commission and by Parliament.
32. Subsection (3) provides that the Sponsor Body may pay grants or any other form of financial assistance to the Delivery Authority for the purposes of enabling the Delivery Authority to exercise its functions. This means that, effectively, the Delivery Authority is also funded out of money provided by Parliament. Subsection (4) enables the Sponsor Body to attach conditions to such financial assistance.

Section 10: Abolition of the Sponsor Body and the Estimates Commission

33. Section 10 makes provision for the abolition of the Sponsor Body and Estimates Commission. The power to abolish the Sponsor Body and Estimates Commission lies with the Leader of the House of Commons and must be exercised by regulations made under the affirmative procedure. The Leader of the House of Commons is required to consult the Corporate Officers and Commissions of both Houses, and obtain the consent of the Leader of the House of Lords before making such regulations.
34. Subsections (2) to (5) provide that Regulations made to abolish the Sponsor Body can also provide for the transfer of functions, property, rights or liabilities. Regulations made to abolish the Estimates Commission cannot include such provision. This is because the Estimates Commission will not have any assets or liabilities and, when it is abolished, will not need to transfer its functions to another party.
35. Subsections (5) and (6) provide that the power to make regulations under this Section may include consequential, supplementary, incidental or transitional provision (including consequential provision, such as amending or repealing any provision of the Act). This is necessary because the abolition of the Sponsor Body and the Estimates Commission may require the Act to be changed – for example, to transfer the Sponsor Body’s powers and duties in relation to the Delivery Authority to another body or person.

Section 11: Dissolution of the Delivery Authority

36. Section 11 provides that the Sponsor Body may dissolve the Delivery Authority after completion of the Parliamentary building works, subject to the consent of the House Commissions and Corporate Officers of both Houses.

Section 12: Interpretation

37. Subsection (1) defines certain terms used throughout the Act.  
38. Subsection (2) provides that the various references in the Act to things being done by the House Commissions mean by those bodies acting jointly. Thus, where such a reference is made, the House of Commons Commission would not be able to undertake duties or functions on its own. Rather, the House Commissions of both the House of Commons and the House of Lords would be required to act together.
39. Subsection (3) provides that any question arising in relation to the definition of the "House of Lords Commission" in subsection (1) is to be determined by the Speaker of the House of Lords.

Section 13: Extent

40. Section 13 provides that the Act extends to the jurisdictions of England and Wales, Scotland and Northern Ireland, apart from paragraph 28(1) and (2) of Schedule 1 which does not extend to the jurisdiction of Scotland.

Section 14: Commencement

41. Section 14 sets out that the provisions of the Act (with the exception of Section 13, Section 14 and Section 15) will come into force six months after it is passed, or on an earlier day or days appointed by regulations made by the Leader of the House of Commons. The Leader of the House of Lords must consent to any such regulations before they are laid. Different days may be appointed for different purposes.

Section 15: Short title

42. Section 15 establishes that the short title of the Act is the Parliamentary Buildings (Restoration and Renewal) Act 2019.