The Government’s management of its major projects
Public Administration and Constitutional Affairs Committee
Closed
Inquiry
The Government’s Major Projects Portfolio (MPP) has 133 projects with a value of £423 billion, and these are only a fraction of the projects delivered by Government. Major projects are the main mechanism by which the government invests in infrastructure, transforms services, and improves IT. The MPP includes high-profile projects …
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23
Recommendations
10
Conclusions
1
Report
2
Oral sessions
4
Letters
3
Events
Activity timeline 9 events
8 Dec
2020
2020
17 Nov
2020
2020
14 Oct
2020
2020
14 Oct
2020
2020
28 Jul
2020
2020
7 Jul
2020
2020
Oral evidence
9 Jun
2020
2020
Oral evidence
5 May
2020
2020
Formal meeting · Virtual meeting
Oral evidence sessions 2 sessions
7 Jul 2020
View on parliament.uk
The Government's Management of its Major Projects
Nick Smallwood · Infrastructure and Projects Authority
Rt Hon Jesse Norman MP · Department for Transport
The Lord Agnew of Oulton DL
9 Jun 2020
View on parliament.uk
The Government’s management of its major projects
James Heath · National Infrastructure Commission
Professor Henry Overman
Sir John Armitt · National Infrastructure Commission
Tom Thackray · CBI
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Third Report - Delivering the Government’s infrastructure commit… | HC 125 | 28 Jul 2020 | 33 | Responded |
Recommendations & Conclusions
33 results
1
Conclusion
Deferred
Third Report - Delivering the Gove…
The Government has committed to the largest investment in infrastructure in decades, which it believes...
The Government has committed to the largest investment in infrastructure in decades, which it believes has the potential to support a fairer and more equitable national economy. However, there is also great potential to waste this money on “white elephant” …
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Government Response
The government reiterates its commitment to the "levelling up" agenda to spread opportunity across the UK and will provide further details on its long-term infrastructure ambitions and their role in this agenda at the upcoming Spending Review and in the National Infrastructure Strategy.
2
Recommendation
Deferred
Third Report - Delivering the Gove…
The overall framework for this investment should be provided by the National Infrastructure Strategy, but...
The overall framework for this investment should be provided by the National Infrastructure Strategy, but this is significantly delayed and has yet to be published. The Government is keen to spend money quickly as part of the Coronavirus “bounce back” …
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Government Response
The government indicates that further details about its long-term infrastructure ambitions and the National Infrastructure Strategy will be set out at the Spending Review and in the NIS 'this autumn', deferring the publication requested by the committee.
3
Recommendation
Accepted
Third Report - Delivering the Gove…
The Government should publish its infrastructure strategy as soon as possible, and certainly before it...
The Government should publish its infrastructure strategy as soon as possible, and certainly before it starts spending large amounts of money on infrastructure. The plan must clearly link the Government’s objectives for the economy and the planed infrastructure investment. It …
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Government Response
The government committed to publishing its National Infrastructure Strategy (NIS) later this year, stating it was delayed due to the pandemic, and confirmed the NIS would link objectives, include ambitions for decarbonisation and levelling up, and respond to NIC recommendations.
4
Recommendation
Accepted
Third Report - Delivering the Gove…
The Government must be clear on what it means by “levelling up” if it is...
The Government must be clear on what it means by “levelling up” if it is to plan projects which lead to “levelling up” and measure progress against them. The Committee expects that the infrastructure strategy will be clear on what …
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Government Response
The government stated that the National Infrastructure Strategy (NIS), delayed until later this year, would set out further details on its long-term ambitions, including levelling up, thus committing to provide clarity on the term.
5
Conclusion
Acknowledged
Third Report - Delivering the Gove…
Previous infrastructure strategies have not led to coherent and co-ordinated infrastructure spending.
Previous infrastructure strategies have not led to coherent and co-ordinated infrastructure spending. A scattergun approach to infrastructure investment might result in expensive infrastructure that does not benefit a local area either because it is not supported by complementary services (for …
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Government Response
The government acknowledges the committee's observations, highlighting the existing institutional framework for infrastructure and the central role of the National Infrastructure Commission, stating it will build on this further upon publishing the National Infrastructure Strategy (NIS).
6
Recommendation
Accepted
Third Report - Delivering the Gove…
The Cabinet Office needs to take a more active lead on co-ordinating infrastructure investment in...
The Cabinet Office needs to take a more active lead on co-ordinating infrastructure investment in line with a national strategy. It should be involved in the early stages of Delivering the Government’s infrastructure commitments through major projects 33 project development …
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Government Response
The government shares the Committee's view on early-stage involvement and coordination. They are undergoing a review, supporting the National Infrastructure Strategy, leading 'Project Speed,' and implementing the 'Get to Green' programme. The IPA will also include more information on early project development support in future Annual Reports and discuss progress at scrutiny sessions.
7
Conclusion
Accepted
Third Report - Delivering the Gove…
It is clear from the evidence submitted to this inquiry that Government infrastructure projects are...
It is clear from the evidence submitted to this inquiry that Government infrastructure projects are progressed before due consideration is given to how they will address local needs. This practice increases the risk of infrastructure not addressing local needs, and …
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Government Response
The government outlines a new consultation, 'Planning for the future,' launched to reform the planning system and ensure local communities are consulted from the beginning to address local needs. It also notes that NIC recommendations are being considered as part of the forthcoming National Infrastructure Strategy (NIS).
8
Recommendation
Deferred
Third Report - Delivering the Gove…
Government should prioritise understanding local needs.
Government should prioritise understanding local needs. Fully populated local needs assessments should be published when projects are announced to demonstrate the purpose of such projects. The IPA should require these assessments as part of the documentation for projects in the …
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Government Response
The government states that its Green Book methodology already identifies social value and is currently being reviewed to enhance assessment of local impacts. It doesn't commit to requiring or publishing local needs assessments, only noting that departments 'may' include them.
9
Recommendation
Accepted
Third Report - Delivering the Gove…
The Government must also reconsider what infrastructure will be needed in coming years, reflecting on...
The Government must also reconsider what infrastructure will be needed in coming years, reflecting on the experience of Coronavirus. For example, if more jobs will move to home working, whether this might create a greater need for faster broadband rather …
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Government Response
The government accepted the recommendation, stating that the National Infrastructure Strategy (NIS) will outline long-term infrastructure ambitions based on the current economic context, and will be provided to the Committee upon publication.
10
Conclusion
Accepted
Third Report - Delivering the Gove…
The Committee heard evidence that investment in major cities, including London, has more immediate economic...
The Committee heard evidence that investment in major cities, including London, has more immediate economic benefit than investing in areas where there is currently slower economic growth.
Government Response
The government acknowledges the committee's observation about immediate economic benefit in major cities but states it has already taken steps since 2019 to incorporate social value into procurements and train buyers to address this imbalance.
11
Recommendation
Accepted
Third Report - Delivering the Gove…
If the Government wants to invest in areas of slower economic growth, including the North,...
If the Government wants to invest in areas of slower economic growth, including the North, regions and rural areas, it needs to be clear on the objectives of that investment, and set a framework for departments to appraise that investment …
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Government Response
The government states that a revised Green Book will be published at the Spending Review, which will include a greater focus on policy objectives and regional impacts for investment appraisals.
12
Recommendation
Accepted
Third Report - Delivering the Gove…
HM Treasury should update the Green Book as promised, in particular to reflect these wider...
HM Treasury should update the Green Book as promised, in particular to reflect these wider Government objectives. There is a pressing need to publish this update so that new infrastructure investment can be appraised in line with its guidelines. The …
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Government Response
The government accepted the recommendation, confirming that a revised Green Book will be published at the Spending Review, incorporating findings from a review focused on appraisal strategy, policy objectives, and regional impacts of interventions.
13
Conclusion
Acknowledged
Third Report - Delivering the Gove…
It is clear from the evidence received that locally-led infrastructure investment can- in some instances—respond...
It is clear from the evidence received that locally-led infrastructure investment can- in some instances—respond better to local needs and contexts. But there are concerns about local capability and short-term funding mechanisms.
Government Response
The government acknowledged the value of locally-led infrastructure investment and recognized concerns about local capability and capacity. It stated a commitment to ensuring and building project delivery capability across regions to effectively utilise and deliver future funding.
14
Recommendation
Deferred
Third Report - Delivering the Gove…
If the Government is serious about its levelling up agenda, it should consider how it...
If the Government is serious about its levelling up agenda, it should consider how it takes into account local needs when determining infrastructure projects. The Committee would like the Cabinet Office to respond to this report outlining whether it intends …
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Government Response
The government acknowledges the important role of local areas and existing devolved funding but defers full details of infrastructure funding and devolution plans to future publications like the NIS and a Devolution and Local Recovery White Paper.
15
Recommendation
Acknowledged
Third Report - Delivering the Gove…
A project’s benefits are the very reason it is proposed and delivered, and the Committee...
A project’s benefits are the very reason it is proposed and delivered, and the Committee does not believe that a project can be deemed successful if it does not demonstrate realisation of its stated benefits. The Government has sought to …
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Government Response
The government explains that its existing Green Book methodology and IPA gateway reviews already focus on benefit realisation, with departments responsible for publishing data. The IPA is currently exploring how to publish benefits in future Annual Reports, acknowledging the need for demonstration.
16
Conclusion
Accepted
Third Report - Delivering the Gove…
Far too often, project managers and ministers prioritise time and cost at the expense of...
Far too often, project managers and ministers prioritise time and cost at the expense of benefits. The Committee has heard of projects delivering benefits that are reduced to the point of no longer exceeding the costs, or more frequently, the …
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Government Response
The government acknowledges that further work is needed to ensure project benefits are not overlooked. They state that the IPA has embarked on the 'Get to Green programme' to establish a system-wide framework and toolkit that will drive best practices in project delivery across government, helping departments balance priorities and ensure benefits realization.
17
Recommendation
Acknowledged
Third Report - Delivering the Gove…
Benefits must be prioritised and reported.
Benefits must be prioritised and reported. The IPA should report against benefits plans consistently in its annual reports from 2021–22. Consistent reporting of benefits should include a standardised financial measure, reported as trend data (showing the benefit agreed at the …
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Government Response
The government agrees that benefits should be reported and encourages departments to publish their data. However, the IPA is only 'taking steps to explore' how benefits can be published in future Annual Reports, without committing to the specific timeline, standardised financial measures, or trend data requested.
18
Recommendation
Accepted
Third Report - Delivering the Gove…
The Committee welcomes Nick Smallwood’s statement that major projects should remain in the GMPP until...
The Committee welcomes Nick Smallwood’s statement that major projects should remain in the GMPP until Gate 5. The Committee would like the IPA to consider periodic reporting on past projects, perhaps at five-year intervals, to assess whether they have achieved …
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Government Response
The government responded by stating that existing Gateway 5 reviews are repeatable and can be undertaken regularly or annually to check project delivery and outcomes, implying the current process already allows for periodic reporting on past projects.
19
Recommendation
Acknowledged
Third Report - Delivering the Gove…
Where benefits will not be apparent immediately on delivery and may only materialise later, there...
Where benefits will not be apparent immediately on delivery and may only materialise later, there should be a mechanism to hold previous ministers and SROs to account after the project has ended. The Chair of the Committee has written to …
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Government Response
The government states it supports giving evidence to the Public Accounts Committee when requested, implying it will cooperate with existing accountability mechanisms but not explicitly committing to creating a new mechanism for holding *previous* ministers and SROs to account.
20
Conclusion
Acknowledged
Third Report - Delivering the Gove…
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early...
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early benefits. Ministers are too keen to commit to specific cost and timescales early in the process, and project managers become tied to these estimates. The …
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Government Response
The government acknowledges the issues of over-optimistic estimates and is working to improve project outcomes through Project Principles, a centralized data platform, and Ministerial training to ensure more consistent cost and timescale estimations across departments.
21
Recommendation
Accepted
Third Report - Delivering the Gove…
Project data should be reported in ranges, which reflect quantified risks to costs and timescales.
Project data should be reported in ranges, which reflect quantified risks to costs and timescales. The IPA should start reporting ranges for any newly-approved projects immediately, and HM Treasury should state an expectation that projects going through Treasury Approval Processes …
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Government Response
The government accepted the recommendation, stating its aim for projects to use cost and schedule ranges. It confirmed that departments are already reporting data in ranges and the IPA is working to refine guidance and strengthen its assurance regime for this new reporting method.
22
Recommendation
Accepted
Third Report - Delivering the Gove…
Projects which are particularly risky or high profile should invest more time up front, and...
Projects which are particularly risky or high profile should invest more time up front, and consider approaches such as shadow cost modelling. The IPA should report on the methods used on the GMPP which can be viewed as best practice …
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Government Response
The government highlights its existing 'Get to Green' programme and published Project Principles aimed at improving project delivery. It states that the IPA benchmarking hub will support departments in identifying best practice, addressing the committee's call for reporting on methods.
23
Conclusion
Accepted
Third Report - Delivering the Gove…
Not enough is done to involve local people in decision making at an early stage.
Not enough is done to involve local people in decision making at an early stage. The Committee heard that decisions are made about a project before consultation happens, and that late consultation can be insufficient to overcome local opposition. This …
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Government Response
The government states that early and transparent community engagement is a legal requirement and that the "Planning for the Future" initiative is changing citizen engagement with the planning system, detailing existing pre-application consultation processes for major infrastructure projects.
24
Recommendation
Deferred
Third Report - Delivering the Gove…
All projects should include proper public consultation as part of the early decision making phase.
All projects should include proper public consultation as part of the early decision making phase. Projects should consider setting up an independent arm to lead on public engagement that is proportionate to the scale and profile of the project. Projects …
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Government Response
The government states that the IPA's Get to Green programme will explore the possibility of reviewing how projects undertake public consultation as part of early decision-making and demonstrating engagement, within a broader project delivery framework.
25
Conclusion
Acknowledged
Third Report - Delivering the Gove…
Efforts to address capability are welcome but will take time to take effect.
Efforts to address capability are welcome but will take time to take effect. A scarcity of appropriately experienced people and salary constraints in the public sector contribute to the ongoing problem of shortages, particularly in the SRO role. The Government …
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Government Response
The government recognised that capability is a constraint on infrastructure plans and highlighted ongoing IPA efforts to improve and accelerate this through recruitment, development, and remuneration, with further consideration planned for the upcoming Spending Review.
26
Recommendation
Accepted
Third Report - Delivering the Gove…
The Government must give further consideration to civil service upskilling if it is to deliver...
The Government must give further consideration to civil service upskilling if it is to deliver its infrastructure commitments, which might include a commitment to making salaries more competitive, at least in the short term. The Cabinet Office should review whether …
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Government Response
The government agrees on the importance of training and skills, and is undertaking salary benchmarking and reviewing pay incentives for SROs and project leaders. Proposals for capability-based pay progression for SCS roles are also in development for potential implementation from April 2021.
27
Recommendation
Accepted
Third Report - Delivering the Gove…
SROs should lead a project from start to completion, and remain accountable for delivering benefits...
SROs should lead a project from start to completion, and remain accountable for delivering benefits after completion. Heads of Departments should ensure that the right incentives are in place to retain SROs, including career or pay progression opportunities as appropriate. …
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Government Response
The government agrees on consistent SRO leadership and is exploring measures for retention, including pay and progression. Crucially, it commits that SRO time commitment will be agreed upon appointment and reviewed at key stages, with satisfactory arrangements required for project approval.
28
Recommendation
Accepted in Part
Third Report - Delivering the Gove…
The Committee welcomes the introduction of training for ministers in project management.
The Committee welcomes the introduction of training for ministers in project management. It is important that ministers take the opportunity provided to educate themselves better about how projects are delivered and how they can have an impact on that, both …
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Government Response
The government has introduced a new ministerial training programme, with 13 ministers already attending, and expects all relevant ministers to undertake it. However, it did not provide the requested list of ministers who have completed or are booked for the training, instead offering future updates.
29
Conclusion
Acknowledged
Third Report - Delivering the Gove…
Good and transparent data is vital for parliamentary and public scrutiny of major projects.
Good and transparent data is vital for parliamentary and public scrutiny of major projects. The Committee has seen examples of projects which have gone off the rails late, having shown little or no sign of difficulty through reported data. The …
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Government Response
The government asserted it is 'world leading' in major project data publication and described existing transparency measures, while also stating the IPA is taking steps to investigate more robust and expeditious publishing of data.
30
Recommendation
Accepted in Part
Third Report - Delivering the Gove…
As responsibility for policy on major projects and their management is shared across two departments,...
As responsibility for policy on major projects and their management is shared across two departments, the Cabinet Office and HM Treasury should write to the Committee setting out the standardised data they expect departments to collect on the most significant …
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Government Response
The government states that departments already provide standardised data to the IPA quarterly, and the IPA encourages them to publish it. However, there is no plan to mandate data collection for smaller projects or for all departments to publish this information in their annual reports.
31
Recommendation
Deferred
Third Report - Delivering the Gove…
The IPA should review the data that it publishes in its Major Project Annual Report,...
The IPA should review the data that it publishes in its Major Project Annual Report, and this should be extended at least to add timelines of project approvals and estimates.
Government Response
The government acknowledges that increased transparency would be beneficial and states the IPA will review the proposal to consider whether project approval timelines and estimates can be added to the annual report.
32
Recommendation
Accepted
Third Report - Delivering the Gove…
Departments with large projects should, from 2021, be able to demonstrate compliance with the recommendations...
Departments with large projects should, from 2021, be able to demonstrate compliance with the recommendations of the 2019 Government financial reporting review, the revised Financial Reporting Manual and the forthcoming thematic review of project reporting review of accounts, which included …
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Government Response
The government agreed that project data should be consistent across various reporting mechanisms and announcements, stating that data published in the IPA annual report, provided by departments, should be reconciled with departmental announcements.
33
Recommendation
Acknowledged
Third Report - Delivering the Gove…
The IPA should consider how it can publish data more quickly—and in particular highlight changes...
The IPA should consider how it can publish data more quickly—and in particular highlight changes to the project, such as increases in costs or delay—so that these issues do not first emerge a year after the fact.. (Paragraph 130) Delivering …
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Government Response
The government agrees on the importance of highlighting project changes quickly and states the IPA will be taking steps to look into publishing data faster, while encouraging departments to publish their own data.
Correspondence 4 letters
8 Dec 2020
To committee
Letter from Nic Smallwood, CEO Infrastructure and Projects Authority on National Infrastructure Strategy, dated 4.12.20
Parliament page
17 Nov 2020
To committee
Letter from Lord Agnew, Minister of State HM Treasury and Cabinet Office on Major projects, dated 6.11.20
Parliament page
14 Oct 2020
From committee
Letter to Lord Agnew on Government Response to Committee's third Report dated 13 Oct 2020
Parliament page
29 Apr 2020
To committee
Letter from Gareth Davies, Comptroller and Auditor General, response to PACAC major projects inquiry, dated 24.4.20
Parliament page