22 Accepted

The IPA provides a range of assurance and support services to major programmes, with one...

Conclusion
The IPA provides a range of assurance and support services to major programmes, with one of its key activities being gateway reviews of programmes at key decision points, such as each approval stage of the Business Case. Major programmes typically join the GMPP as they approach the strategic outline business case stage and leave the GMPP when they have delivered their benefits and are considered complete.43 In the past, this Committee has raised concerns that the IPA is not sufficiently independent of government to confidently challenge it. The IPA arose from the merger of the Major Projects Authority, which provided independent assurance, and Infrastructure UK, which promoted the development of infrastructure, and we stated that the conflict between these roles risked compromising its effectiveness. At the time, the IPA argued that the merger of the two bodies would have benefits such as bringing new expertise and increasing the level of support and intervention it could provide to projects.44
Government Response Summary
The government agrees with the implicit recommendation to enhance IPA's independence and scrutiny, outlining specific steps such as separating support and assurance functions, simplifying the RAG rating system, making IPA support mandatory for project advancement, and preventing red-ranked projects from proceeding. The IPA will update the Committee within six months.
Government Response
Accepted
HM Government Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 3.2 In 2020, the IPA worked across government to ensure that every project that meets the eligibility criteria is included in the GMPP, which has led to an increase in the size of the portfolio. The IPA encourages departments to notify it of prospective major projects as soon as possible in the policy formulation process. In doing so, the IPA has improved its ability to provide the right support and scrutiny of projects and embed deliverability principles early, including through the recently published Principles for Project Success and the Project Initiation Routemap. 3.3 The IPA recently separated its support and assurance functions to ensure evaluations of projects are consistently robust and impartial. From 2021, the GMPP RAG rating system will be simplified from five categories (Red, Red/Amber, Amber, Amber/Green, Green) to three (Red, Amber and Green). The focus of IPA assessment will shift from ‘overall delivery confidence’ to the singular question of whether a project is ready to progress through the next HM Treasury Approval Point. The IPA’s support will now be required for advancement, rather than being merely advisory. Projects ranked red will not be permitted to proceed until issues are managed to an acceptable level of risk. Projects ranked amber will proceed with conditions, including a duty to report back at an agreed date. Projects ranked green will proceed without conditions, subject to usual quarterly data returns and monitoring. 3.4 As of September 2019, 43 projects were assigned Red or Amber/Red. The reasons for this varied by project. The IPA will write to the Committee within six months to update it on the actions taken and progress made on these projects.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.5 yrs
Report published 29 Jan 2021