Third Report - Delivering the Government’s infrastructure commitments through major projects
Select Committee
Public Administration and Constitutional Affairs Committee
HC 125
28 July 2020
Government response
Third Special Report - Delivering the Government’s infrastructure commitments through major projects: Government Response to the Committee’s Third report · published 14 Oct 2020
Recommendations & Conclusions
9 results
5
Conclusion
Acknowledged
Para 47
Previous infrastructure strategies have not led to coherent and co-ordinated infrastructure spending.
Conclusion
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 Summary
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).
13
Conclusion
Acknowledged
Para 65
It is clear from the evidence received that locally-led infrastructure investment can- in some instances—respond...
Conclusion
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 Summary
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.
15
Recommendation
Acknowledged
Para 80
A project’s benefits are the very reason it is proposed and delivered, and the Committee...
Recommendation
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 Summary
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.
17
Recommendation
Acknowledged
Para 82
Benefits must be prioritised and reported.
Recommendation
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 Summary
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.
19
Recommendation
Acknowledged
Para 84
Where benefits will not be apparent immediately on delivery and may only materialise later, there...
Recommendation
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 Summary
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
Para 91
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early...
Conclusion
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 Summary
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.
25
Conclusion
Acknowledged
Para 112
Efforts to address capability are welcome but will take time to take effect.
Conclusion
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 Summary
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.
29
Conclusion
Acknowledged
Para 126
Good and transparent data is vital for parliamentary and public scrutiny of major projects.
Conclusion
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 Summary
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.
33
Recommendation
Acknowledged
The IPA should consider how it can publish data more quickly—and in particular highlight changes...
Recommendation
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 Summary
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.