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
23 Recommendations
10 Conclusions
1 Report
2 Oral sessions
4 Letters
3 Events
Activity timeline 9 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
9 Jun
2020
Oral evidence
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
9 results
Clear
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 … Read more
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).
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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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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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 … Read more
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.
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Government Response AI assessment · 33 of 23 classified
Accepted 16
Accepted in Part 2
Acknowledged 9
Deferred 6
Total 23 recs + 10 conclusions
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