Independent Assurance: Programme: Cladding Remediation Project Assessment Review (PAR)

Annex B: Background

1) Describe the aims of the project/ programme:

The vision of the Cladding Remediation Programme is that when this programme is completed, citizens will live in buildings that are safer from cladding risks

Strategic objectives are:

• Interventions (time-limited or permanent) will be put into place to give owners, tenants, buyers, sellers and the finance sector assurance on fire and building safety.
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• Mitigate or remediate all buildings identified as ‘high risk’ to bring them to ‘low risk’ fire safety rating and underpin interests of insurers and lenders (Ministerial Working Group directive).
• Explore options for homeowner support in specific forms to address relevant short term issues for homeowners unable to sell their property.
• Develop target operating model that includes the public and private sector developers to ensure these objectives are delivered as part of a comprehensive programme while maximising value for money and reduces net public finance demands e.g. by securing volume pricing, using structures to simplify overheads/access trade skills, raising tax and incidental income from commercial opportunities.

2) Reasons for the project/ programme’s existence, by type and description:

The Cladding Remediation Programme supports the following commitment from the policy prospectus (Supporting documents - Equality, opportunity, community: New leadership - A fresh start - gov.scot (www.gov.scot);

• Acted decisively to protect lives by assessing and remediating medium and high rise multi-residential buildings with unsafe cladding and by holding developers to account for their commitments to residents and homeowners.

The Scottish Government, guided by the Policy prospectus has set out how the Scottish Government will tackle poverty, build a fairer, greener and growing economy, and improve public services by 2026.

3) The impact if the project/programme fails to deliver e.g. any risks to or any material impact on citizens:

If the programme fails to deliver, buildings in scope will remain unsafe to fire safety risks identified and communities will not live in communities that are resilient and safe (National Outcome)

It will not meet the aims and recommendations of the final March 2021 report by the ministerial working group on mortgage lending and cladding. Ministerial Working Group on Mortgage Lending and Cladding: report - March 2021 - gov.scot (www.gov.scot)

4) Project/programme link to Scottish Government strategies or policies:

The Cladding Remediation Programme supports the following commitment from the policy prospectus (Supporting documents - Equality, opportunity, community: New leadership - A fresh start - gov.scot (www.gov.scot);

• Acted decisively to protect lives by assessing and remediating medium and high rise multi-residential buildings with unsafe cladding and by holding developers to account for their commitments to residents and homeowners.

5) Projects/programme interdependencies [if applicable]:

N/A

6) Has the SRO’s letter of appointment been approved at the appropriate levels?

Yes (updated March 2023)

7) The procurement / delivery status:

Commercial case set out in Strategic Outline Business Case (SOBC)

8) Funding / Business Case:

Agreed funding in current spending review periods is as follows:

Financial Year | Capital Budget | Resource Budget* | Total

2021/22 | [Redacted] | [Redacted] | [Redacted]

2022/23 | [Redacted] | [Redacted] | [Redacted]

2023/24 | [Redacted] | [Redacted] | [Redacted]

2024/25 | [Redacted] | [Redacted] | [Redacted]

2025/26 | [Redacted] | [Redacted] | [Redacted]

*Resource budget is currently identified as a pressure to be managed within existing 2023/24 DG Communities budget.

[Redacted]

9) Integrated Assurance and Approval Plan (IAAP):

To be agreed with SG internal audit.

10) Programme/Project plan:

Does the project / programme have an appropriate plan in place?

Yes – Programme roadmap and initial plan in place and has been reviewed / endorsed by Programme Board.

11) Current position regarding previous PPPA assurance reviews:

Two (2) previous Gateway Review Zero (0) assurance reviews have taken place in October 2021 and June 2022.

All previous fifteen (15) recommendations have been reviewed and action taken.

A summary of recommendations, progress and status from the previous assurance review can be found in Annex C.

12) Current position regarding Non‑PPPA assurance reviews:

The programme has had regular reviews / check ins with SG Executive Team (ET). Investment mode committee to review/endorse SOBC in November 2022 and progress update at ET in Delivery mode – March 2023.

A number of progress updates have also been prepared and shared with the SG Permanent Secretary and relevant Cabinet Secretary/Minister to keep them appraised of progress/urgent actions etc.

13) Current position regarding SG PPM Capability Maturity Matrix:

A draft SG PPM Capability Maturity Matrix has been completed – working with SG PPM CoE to review.