39th Report - Government’s use of private finance for infrastructure
Select Committee
Public Accounts Committee
HC 821
11 July 2025
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-ninth report from Session 2024-26 · published 15 Oct 2025
Recommendations & Conclusions
4 results
11
Recommendation
Not Addressed
Government does not routinely evaluate completed infrastructure projects to assess their success
Recommendation
Though government attempts to determine the success of a project through measures such as cost-benefit analysis, they do not routinely evaluate completed projects.19 The UK has used a variety of private financing models to deliver new infrastructure, including but not …
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Government Response Summary
The government's response describes its existing pre-project appraisal process using the Green Book to identify the preferred financing model, but does not commit to or address the recommendation for routinely evaluating completed projects post-implementation.
HM Treasury
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12
Recommendation
Not Addressed
Government activity and private financing models lack robust evaluation frameworks
Recommendation
The National Audit Office’s (NAO) report on evaluating government spending highlighted that much of government’s activity is either not evaluated robustly or not evaluated at all, despite the government’s commitment to evidence-based decision-making.22 In addition, there 17 C&AG’s Report, para …
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Government Response Summary
The government's response describes its existing pre-project appraisal process using the Green Book to ensure value for money, but does not commit to or address the recommendation for robust post-project evaluation or comparative assessments of financing models.
HM Treasury
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13
Conclusion
Not Addressed
Significant proportion of major government projects still lack an evaluation plan
Conclusion
The Treasury told us that the proportion of major projects that have been evaluated has improved since the NAO’s evaluation report. After our evidence session, the Treasury wrote to us and stated that 68% of infrastructure and construction of major …
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Government Response Summary
The government states the recommendation is implemented, but its response focuses on the Green Book appraisal process for selecting financing models, not directly addressing the committee's concern about the proportion of major projects lacking high-quality evaluation plans.
HM Treasury
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15
Conclusion
Not Addressed
Most private finance contracts lack central monitoring, undermining effective management and value
Conclusion
The overall value and number of infrastructure projects delivered using private financing models is significant, for example, on the Regulated Asset Base model, a combined £9 billion was invested in Thames Tideway Tunnel and Heathrow Terminal 5.28 In addition, the …
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Government Response Summary
The government states the recommendation is implemented, but its response focuses on the Green Book appraisal process for selecting financing models, not addressing the lack of central monitoring or digitised contracts for non-PFI private finance projects.
HM Treasury
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