MoD Under Fire Over Property Empire

A new report is warning the Ministry of Defence has too much property and isn't running it well enough.

The MoD owns £31 billion worth of land and buildings in the UK, including 50,000 service family units.

MPs on the Public Accounts Committee say service families need assurances that their accommodation will be up to scratch and that prices won't go up massively under any new system.

The PAC also said they were dismayed at the way the land and buildings, which covers 1.8% of the UK, was being run and despite recent changes the system was still "not fit for purpose".

Reforms of the Defence Infrastructure Organisation (DIO), which was set up six years ago to manage the estate centrally, could make it more difficult to recruit and retain staff at a time when it already has 500 vacancies, it added.

MPs also highlighted previously raised concerns about a £90 million contract with a private sector consortium led by Capita that had failed to deliver the expected ''transformation'' in operations.

Meg Hillier, who chairs the PAC, said: "Government has set challenging targets for the MoD to reshape its estate."

Minister for Defence Personnel and Veterans Mark Lancaster says the MoD is investing £4 billion in accommodation and training facilities, while ensuring the plan is affordable with every pound raised from the sale of surplus sites going back into the estate.