Palace of Westminster renovation could cost taxpayers 3bn

The Palace of Westminster, home to the Houses of Parliament. Photograph: Stefan Rousseau/PA

The planned restoration of the Palace of Westminster could cost taxpayers more than 3bn, it has been claimed.

An expert who led an examination of options for renovating the historic building told BBC2s Newsnight that it was not unreasonable to think the bill could top 2bn, but the programme claimed the working assumption of insiders was that it could cost 1bn more.

Dr Richard Ware was appointed in 2012 as director of a group studying the restoration and renewal of the palace, and later that year produced a report that put the capital cost of necessary repairs at around 1.5bn.

The report found that basic services within the building, such as electricity, water and sanitation, were functioning with increasing difficulty and growing risks, while asbestos was present throughout the palace and original roofs were no longer watertight, leading to extensive damp, leaks and floods.

The present building home to the House of Lords since 1847 and the Commons since 1852 has had no general renovation since repairs to wartime damage in 1945-50, the 2012 report said, adding: If the palace were not a listed building of the highest heritage value, its owners would probably be advised to demolish and rebuild.

The report considered the options of constructing a new home for parliament, moving one or both houses temporarily while Westminster is renovated, or attempting to restore the building with MPs and peers working inside something it warned could take 50 years. And it proposed the establishment of a quango, along the lines of the Olympic Delivery Authority, to oversee the work.

The House of Commons was told last week that 7m was being spent on a further report, with MPs due to choose their favoured option in spring 2016 and work not expected to begin in earnest until after 2020.

Ware told Newsnight that if nothing was done, politicians and staff would end up working in a ruin. Were moving backwards, the building is getting older, faster than we can deal with it. The building is on borrowed time, and if we dont act soon we wont have a choice.

Asked if the cost would be more than 2bn, Ware said it was not unreasonable to think it will be of that order. But Newsnight said it had been told that the working assumption was that the cost could reach 3bn over many years. It quoted an unnamed source familiar with the project as saying: Id be surprised if it stayed at that.

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Palace of Westminster renovation could cost taxpayers 3bn