The Government’s management of its major projects

Public Administration and Constitutional Affairs Committee Closed Inquiry
Opened: 3 Feb 2020 Closed: 29 Jul 2020 Parliament page
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 … Read more
7 Recommendations
26 Conclusions
1 Report
2 Oral sessions
4 Letters
3 Events
Activity timeline 11 events
8 Dec
2020
Correspondence
17 Nov
2020
Correspondence
14 Oct
2020
Report published
14 Oct
2020
Correspondence
28 Jul
2020
Report published
7 Jul
2020
Oral evidence
7 Jul
2020
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
9 Jun
2020
Oral evidence
9 Jun
2020
Formal meeting (oral evidence session) · Virtual Meeting
5 May
2020
Formal meeting · Virtual meeting
29 Apr
2020
Correspondence
Oral evidence sessions 2 sessions
7 Jul 2020
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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
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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
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
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” … Read more
Government Response
This Government’s levelling up agenda will spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth in the UK. It targets the long-standing economic and … Read more
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2 Conclusion
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” … Read more
Government Response
This Government’s levelling up agenda will spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth in the UK. It targets the long-standing economic and … Read more
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3 Recommendation
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 … Read more
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4 Recommendation
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 … Read more
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5 Conclusion
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 … Read more
Government Response
The Government’s institutional framework for infrastructure and major projects has undergone significant change and improvement in recent years. The National Infrastructure Commission (NIC), IPA and HM Treasury are at the … Read more
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6 Conclusion
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 … Read more
Government Response
Government shares the Committee’s view that projects and programmes should be set up for success from their initial policy stages, and that early-stage involvement, including with controls, is essential to … Read more
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7 Conclusion
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 … Read more
Government Response
some time and Public Consultation was stipulated in the Localism Act 2011 and referenced in the Planning Act 1990. On the 6 August the Ministry of Housing, Communities and Local … Read more
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8 Conclusion
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 … Read more
Government Response
benefits a project or a programme will deliver. As part of the Green Book methodology, the Government seeks to identify the option most likely to offer the best social value … Read more
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9 Recommendation
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 … Read more
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10 Conclusion
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
Major cities, including London, generally have higher levels of existing capital stock, which results in a more immediate economic benefit than some regions of the country where economic growth may … Read more
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11 Conclusion
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 … Read more
Government Response
A revised Green Book will be published at Spending Review (SR) following the review which is looking into, for example, Benefit Cost Ratios, the current appraisal strategy and aspects of … Read more
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12 Conclusion
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 … Read more
Government Response
A revised Green Book will be published at Spending Review (SR) following the review which is looking into, for example, Benefit Cost Ratios, the current appraisal strategy and aspects of … Read more
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13 Conclusion
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
Government’s levelling up agenda seeks to spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth as well as decarbonising the economy. It targets the … Read more
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14 Conclusion
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 … Read more
Government Response
Government recognises the important role of local areas in infrastructure, and has devolved significant funding to Mayoral Combined Authorities in England through the Transforming Cities Fund and 30 year Mayoral … Read more
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15 Conclusion
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 … Read more
Government Response
A key part of the Green Book methodology is to set out forecasted benefits and benefit realisation. In support of this, the IPA reviews benefit realisation at gateway reviews, crucially … Read more
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16 Conclusion
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 … Read more
Government Response
The UK Government delivers some of the most challenging, complex and innovative projects in the world. The scope and scale of these projects easily rivals the private sector, and some … Read more
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17 Conclusion
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 … Read more
Government Response
including benefits being properly scoped and understood. Government agrees that benefits should be reported and the IPA encourages departments to publish their own data and provide information to Parliament and … Read more
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18 Conclusion
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 … Read more
Government Response
through the Gateway 5 assurance process. Gateway 5 reviews are repeatable, and IPA/ departments often recommend they are undertaken regularly to maintain accountability for project outcomes. The first Gateway 5 … Read more
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19 Conclusion
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 … Read more
Government Response
Government supports giving evidence to the Public Account Committee where it is requested.
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20 Conclusion
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 … Read more
Government Response
The IPA strives to build the best-performing project system of any country in the world and is taking bolder action to work towards this ambition and improve outcomes. This work … Read more
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21 Conclusion
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 … Read more
Government Response
Government’s aim is to ensure projects are not locked into unrealistic point estimates when announcements are made, and projects use ranges when presenting costs and schedules. This was requested in … Read more
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22 Conclusion
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 … Read more
Government Response
initial policy stages. This is why the IPA has put in place the Get to Green programme which will establish the new framework, new assurance and support arrangements for departments … Read more
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23 Conclusion
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 … Read more
Government Response
As mentioned in our response to recommendation 7, early and transparent community engagement is a legal requirement and through Planning for the Future we are changing the culture and engagement … Read more
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24 Conclusion
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 … Read more
Government Response
The Government recognises the strong relationship between ‘assurance’ and ‘controls’ and the Get to Green programme is an opportunity for the IPA and HM Treasury to reinforce this. The IPA’s … Read more
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25 Conclusion
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 … Read more
Government Response
delivery has never been more vital. People are the foundation upon which all project delivery is built. Government recognises that capability takes time to build and the IPA is working … Read more
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26 Recommendation
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 … Read more
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27 Conclusion
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. … Read more
Government Response
Government agrees that consistency of leadership is very important in major projects. SRO turnover has reduced in recent years and the IPA is looking at measures to improve retention further, … Read more
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28 Recommendation
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 … Read more
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29 Conclusion
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 … Read more
Government Response
The UK Government is world leading in the amount and detail of the data that is published about major projects, in addition to the annual report the IPA publishes further … Read more
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30 Recommendation
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 … Read more
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31 Recommendation
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.
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32 Conclusion
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 … Read more
Government Response
4 Annual Report on Major Projects 2019 to 2020, consolidated data and narratives 5 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/827229/ Government_Major_Projects_Portfolio_-_Senior_Responsible_Owners_list_September_2018.csv/preview the 2019 Government financial reporting review, the revised Financial Reporting Manual and the forthcoming … Read more
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33 Conclusion
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 … Read more
Government Response
The UK is a world leader in having a cross-governmental understanding of the size, scope and viability of the GMPP. Government agrees that highlighting changes to projects as soon as … Read more
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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