Lord Timpson (Lab)

I thank the noble and learned Lord for his detailed question. In the wider scheme of things, the best way to get value for money, as he says, is to reduce reoffending. Maybe in 15 or 20 years we will not need the prison places we have now because our reoffending will be much lower and the success of what I am trying to do in this job will be bringing results. One of the main areas of being sensible with money is not to lose cells, so we are making sure that our existing stock is maintained. Noble Lords may remember that I mentioned HMP Preston. It first welcomed prisoners in 1798 and is still going strong. It has some elements that need a bit of work, but we also need to maintain them. The cost of building new cells in new prisons is £500,000 each. The cost of running them will be significant, because it is not just running buildings but staffing them and all the associated healthcare costs that go with it. Unfortunately, we do not have a choice to spend £10.1 billion at the moment—it was going to be a lot less than that—because we are in a position where we need to have spare capacity for the courts to do their job. I am also looking forward to David Gauke’s review of sentencing to see the conclusions it comes to and the evidence it has looked at. A number of noble Lords will be feeding information into the sentencing review, which is due before 9 January. Running prisons is an expensive business. Reoffending, at £18 billion a year, is an incredible amount of money and waste. My job here, as a commercially minded person, is to look at why we are spending this money, and to challenge when we are spending what look like eye-watering amounts. I am challenging it, and I like to think I am starting to get some results.