14
Accepted
Current mega-project definition excludes numerous complex and strategic government initiatives and programmes.
Recommendation
The OVFM and Treasury’s selection criteria for mega-projects excludes a number of complex projects, such as the Lower Thames Crossing and the Oxford-Cambridge arc.27 The exclusion of repeatable and scalable projects also means that the New Hospitals Programme is not classified as a mega-project, a project this committee has previously examined.28 Similarly, technically complex and innovative projects, such 23 C&AG’s Report, paras 1.1-1.7 24 Q 72 25 Q 7 26 Q 46 27 Q 72 28 Q 7; Committee of Public Accounts, The New Hospitals Programme, First Report of Session 2023–24, HC 77, 9 November 2023 11 as digital transformation and artificial intelligence (AI), also do not fit the OVFM and Treasury’s definition of a mega project, despite government’s clear focus on these to deliver its ambitions for public service reform.29 Developing a coherent strategic approach
Government Response Summary
The Treasury has written to the Committee setting out the rationale for the £10 billion cost criterion for mega projects.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
2. PAC conclusion: There are many strategically important projects that will not fall within the OVFM and Treasury’s definition of a mega project. 2. PAC recommendation: Alongside its Treasury Minute response, the Treasury should write to us setting out the rationale for the £10 billion cost criterion for mega projects, and under what circumstances a project’s complexity and importance could justify it being a mega-project even where the £10 billion cost threshold is not met. 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The Treasury has written to the Committee alongside this report.
Source
Committee
Public Accounts Committee
Report
44th Report - Governance and decision-making on major projects
10 Sep 2025
HC 642
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.7 yr
Report published
10 Sep 2025