Incomplete Public Project Cost-Benefit Analysis
Omission of significant costs (e.g., customer costs) from cost-benefit analyses for major public projects.
531 items
8 sources
2 inquiries
Strongest theme matches
Mixed across source types and ranked by classifier confidence plus text match strength.
Committee recommendation
99match
#5 - Develop an infrastructure financing toolkit for quantifying and managing public project risks
There is no comprehensive framework for considering risk allocation between the public and private sector when working in partnership. Risks should be borne by those who are best able to manage them and should be priced appropriately. Not all risks can or should be transferred to the private sector because the cost of inappropriate transfer of certain project...
Matched on
terms: benefit, cost, project, public
Committee recommendation
99match
#18 - Green Book changes aim to improve place-based interventions by aggregating benefits from multiple projects.
We asked about how changes to the Green Book will ensure that projects are effective place-based interventions. The Treasury outlined that the key objective of the place-based business case is to bring together all the different projects that will make a substantial difference to a particular place, and where these projects are greater than the sum of their...
Matched on
terms: benefit, project, public
Committee recommendation
95match
#14 - Department conducted minimal analysis of future loan management costs beyond March 2025
The Department has conducted minimal analysis of the costs of managing the loans over their lifetime, with no assessment of the factors that might increase costs or reduce income. It forecast that it would spend £17.3 million over the three years to March 2025, which we calculated would already represent 22% of its total expected income from interest...
Matched on
terms: analysi, cost, public
Committee recommendation
95match
#2 - Publish comprehensive evaluation of Skilled Worker visa route’s costs, benefits, and impact on skill shortages.
The Home Office has not had a full understanding of how immigration has helped to address skill shortages or the unintended consequences of the much higher than anticipated use of the Skilled Worker route. More people have used the Skilled Worker visa route than the Home Office anticipated in 2020. It forecast that it would issue 360,000 Skilled...
Matched on
terms: benefit, cost, public
Committee recommendation
95match
#24 - Department lacks comprehensive analysis comparing cost-effectiveness of incentives against direct teacher pay increases.
We asked the Department if it has assessed whether spending on initiatives such the Early Career Framework (£131 million budget in 2024–25) provides better outcomes than simply increasing teachers’ pay. The Department did not confirm if it had undertaken this analysis but instead told us more generally that teaching quality would need to be considered alongside teacher numbers.68...
Matched on
terms: analysi, benefit, cost, public
Committee recommendation
95match
#71 - Undertake rigorous cost-benefit analysis of investing in a fully inclusive education system.
The Government should undertake a rigorous cost-benefit analysis to understand the short- and long-term economic benefits of investing in a fully inclusive education system. (Recommendation, Paragraph 254)
Matched on
terms: analysi, benefit, cost
Committee recommendation
94match
#22 - Inappropriate risk transfer to private sector incurs disproportionately high costs for government.
There are many risks to delivering major infrastructure projects, such as financing risk, construction risk, and demand for the asset being lower than expected.49 These risks should be transferred to those best able to manage them, and when they are transferred to the private sector, it comes with costs: it is fair that the higher the risk, the...
Matched on
terms: cost, project, public
Committee recommendation
90match
#3 - Assess the full CCUS programme's affordability for taxpayers and consumers amid cost of living pressures
The Department and HM Treasury have yet to assess the full financial impact of the CCUS programme on taxpayers and consumers. The costs of the CCUS programme are significant: in November 2024 the government announced £21.7 billion of funding over 25 years to cover only the first five CCUS projects. There are three more projects that are still...
Matched on
terms: cost, project, public
Committee recommendation
86match
#18 - Ministry of Justice has not assessed additional costs incurred for urgent prison place delivery
We asked MoJ if it has assessed the costs of needing to deliver prison places so urgently, such as paying contractors more to take on a higher level of risk.62 MoJ said it had not and indicated this could be difficult to disaggregate. It conceded that needing to do things quickly will likely cost more, but it also...
Matched on
terms: cost, project, public
Committee recommendation
86match
#10 - Department lacks robust value-for-money analysis for teacher recruitment initiatives and spending
We asked the Department how confident it was that the initiatives funded through the £700 million represented the best value for money. It told us it had allocated the funding in a way to make what is described as “as much progress as possible”.23 We challenged the Department on, for example, whether the £26 million annual spend relating...
Matched on
terms: analysi, cost, public
Committee recommendation
86match
#2 - Evaluate alternate infrastructure financing models to identify preferred options for project types
The Treasury has not identified which financing models represent value for money for different types of infrastructure assets. A range of financing models are currently in use for delivering public infrastructure including but not limited to: Contracts for Difference; Regulated Asset Base models; and Public Private Partnerships, of which the extensively used Private Finance Initiative (PFI) is an...
Matched on
terms: benefit, cost, project, public
Committee recommendation
83match
#17 - Provide analysis of Single Trade Window delays and outline renewed implementation timeline and costs.
Future border systems must prioritise ease of use, interoperability, and support for trade growth. In its response to this Report, the Department should provide an analysis of the reasons for the Single Trade Window’s delay. It should also outline the renewed timeline for the implementation of the Window and the costs associated with its development and pausing. (Recommendation,...
Matched on
terms: analysi, cost
Committee recommendation
81match
#22 - Thirty-fourth Report - Covid-19: Support for jobs
The condensed timetable for introducing the schemes meant that a lot of the standard documentation that would accompany such a major policy initiative—business cases, options appraisal and detailed cost-benefit analysis—wasn’t undertaken back in the spring.57 HM Treasury asserted that the potential economic costs and human cost of large-scale unemployment if the schemes had not been introduced meant that...
Matched on
terms: analysi, benefit, cost, public
Committee recommendation
81match
#2 - Set out changes to ensure Home Office investment decisions use comprehensive information and transparent consultation
In its haste to purchase the Northeye site, the Home Office ignored opportunities to properly understand the risks and costs of developing it, leading to poor value for money for the taxpayer. The Home Office asserts it did a “fair amount” of due diligence before acquiring the Northeye 4 site, but the NAO highlighted significant shortcomings. The Home...
Matched on
terms: cost, incomplete, project, public
Committee recommendation
78match
#13 - Home Office underestimated large accommodation site set-up costs due to optimism bias and inadequate expertise.
We were concerned by the Home Office’s assessment of the set-up costs to convert the two former RAF bases to accommodation. At the outset, the Home Office estimated that such costs would be £5 million for each site, but the costs increased to £49 million at Wethersfield and £27 million so far at Scampton. We asked the Home...
Matched on
terms: cost, public
Committee recommendation
78match
#10 - Home Office unable to explain significant additional escort training costs for Rwanda scheme.
The Home Office has estimated that it would cost £11,000 to fly each relocated individual to Rwanda. Witnesses told us that this was an internal estimate and actual costs would depend on a number of variables. The Home Office will also need to pay additional costs to escort people to Rwanda but did not provide an estimate of...
Matched on
terms: cost, public
Committee recommendation
78match
#22 - Home Office failed to adequately assess acquisition risks and costs for Northeye site.
When the Chief Secretary to the Treasury approved the acquisition of the Northeye site on 25 March 2023, he noted that the value-for-money case was marginal and based on assumptions that were highly uncertain.71 The cost of remediating the building of asbestos and removing contaminated ground estimated at £20 million did not feature in the Accounting Officer’s advice.72...
Matched on
terms: cost, public
Committee recommendation
78match
#27 - Airport expansion risks climate targets and lacks demonstrated economic benefits outweighing environmental harm.
Whilst it may be possible for the Government to deliver airport expansion alongside its climate and environment targets, we are concerned that the proposed environmental impact from airport expansion will make such targets significantly more difficult to achieve and at much greater effort and cost. Furthermore, the Government has not demonstrated that the economic growth from airport expansion...
Matched on
terms: benefit, cost
Committee recommendation
77match
#14 - Uncertainty remains regarding precise consumer/taxpayer funding balance for the £22 billion CCUS programme
The Department told us it expects around three quarters of the allocation of financial support of almost £22 billion will be from levies on consumers (such as those using power generated by the Net Zero Teesside project).46 The remaining 25% will come from the Exchequer.47 However, the Department does not yet know the precise balance of funding between...
Matched on
terms: cost, project, public
Committee recommendation
77match
#7 - Publish formal assessment of remediation policies' impact on housebuilding targets and identify mitigation actions.
We are not convinced that MHCLG is taking the potential impact of its remediation plans on wider housebuilding targets seriously enough. The government has pledged to build 1.5 million homes during this Parliament. The construction sector is reporting workforce shortages. There is a risk that MHCLG’s approach to remediation could negatively impact the delivery of this target, and...
Matched on
terms: cost, project, public
Committee recommendation
77match
#23 - Treasury prioritises private finance for incentivised risk management and expert due diligence.
We asked the Treasury how it decides on which private finance model to use, and how it assesses the additional cost of private finance against the benefits of risk transfer. The Treasury told us that the benefit of private finance is that the private sector is incentivised to take on and manage risk. It explained that the private...
Matched on
terms: benefit, cost, project, public
Committee recommendation
74match
#4 - Set out methodology to estimate Criminal Justice System costs due to prison capacity pressures.
The prison capacity crisis has led to decisions and inefficiencies which represent poor value for money. Maintaining and making best use of the existing prison estate represents better value than building new places. However, capacity constraints mean that MoJ and HMPPS are unable to make cost–effective decisions. For example, HMPPS needs cells to be empty to undertake essential...
Matched on
terms: cost, public
Committee recommendation
74match
#12 - Conduct urgent analysis on targeted HETV Audio-Visual Expenditure Credit uplift for domestic productions
We recommend the BFI urgently conducts analysis on the potential design and return on investment of a targeted uplift to HETV Audio-Visual Expenditure Credit for domestic productions with budgets of £1 million to £3 million per hour. The Government should commit to introducing the measure at the next fiscal event if the projected return on investment and impact...
Matched on
terms: analysi, project
Committee recommendation
74match
#26 - Total cost of the family justice system remains unknown to the MoJ.
MoJ told us that there are separate accounting officers for each part of the system, and that each could account for the costs for which they were responsible.62 MoJ accepted, however, that they did not know the cost of the family justice system in totality, including spending by local authorities.63 Local authorities, which incur substantial costs before and...
Matched on
terms: cost, public
Committee recommendation
74match
#23 - Set out detailed analysis on aviation impacts and mitigations if airport expansion proceeds.
If the Government proceeds with airport expansion it should set out to the Committee in its response to this report, in-depth analysis on: • How it will ensure carbon costs will reach the level the Government expected in the Jet Zero Strategy. It should also set out a realistic timeline and a plan in the event that these...
Matched on
terms: analysi, cost
Committee recommendation
69match
#7 - Department and Treasury agree CCUS funding limits but recognise substantial contingent liabilities
A major factor in the failure of the second CCUS competition was the lack of agreement between the Department and HM Treasury on funding limits.15 The Department told us that this time it had agreed an affordability envelope with HM Treasury which has developed as the projects have matured.16 HM Treasury announced up to £20.0 billion of funding...
Matched on
terms: project, public
Committee recommendation
69match
#29 - Government lacks precise data on digital procurement spend and future demand pipeline.
Government lacks data on spend and the pipeline of supply and demand. Available estimates from third parties suggest that government spends at least £14 billion annually on digital procurement, but government has not been able to provide a more precise figure. There is also insufficient information about the pipeline of demand from departments for digital services.50 The Cabinet...
Matched on
terms: cost, public
Committee recommendation
66match
#4 - Publish analysis of London airport expansion's economic impact on wider UK regions.
In response to this report the Government should set out how the planned expansion of London Airports will impact the aviation and airport sector around the rest of the UK and the economic impact and level of growth in the wider regions. We recommend that this analysis should be published before a final decision is made on proposed...
Matched on
terms: analysi
Committee recommendation
65match
#15 - Home Office failed to complete a full business case for the Northeye site acquisition.
The Small Ministerial Group, established around November 2022, implemented concessions to the process of acquiring sites, including dispensing with the requirement for a full business case before approving acquisitions. The Home Office began drafting an outline business case for the acquisition of the Northeye site, dated 1 March 2023, but never completed it.42 When asked why a full...
Matched on
terms: cost, public
Committee recommendation
65match
#26 - HS2 Ltd fails to monitor total spending on environmental mitigation schemes.
HS2 Ltd does not monitor how much in total it spends on environmental mitigation. For example, we asked HS2 Ltd how much it was spending on wildlife migration schemes such as for the great crested newt at Halse Copse. In its follow–up letter, HS2 Ltd told us that it was not able 38 Qq 15–16, 18; Letter from...
Matched on
terms: cost, public
Committee recommendation
65match
#6 - Set out total spending and impact of investments on Crown Court backlog reduction.
MoJ could not tell us which of the actions it funded from nearly £500 million of additional funding it received through the 2021 Spending Review had the biggest impact on reducing the backlog, nor could it quantify what it expects the cost to be of dealing with the backlog now, raising concerns over MoJ’s ability to put a...
Matched on
terms: cost, public
Committee recommendation
65match
#46 - MHCLG expects Building Safety Levy to have minimal impact on housing supply.
We asked MHCLG about the potential impacts of the Building Safety Levy on housing provision. MHCLG said it had not published any impact assessment or produced specific numbers, but believed the impact would be relatively small. It told us that it had deliberately designed the Levy to take into account factors to protect housing supply. It explained that...
Matched on
terms: cost, public
Committee recommendation
65match
#15 - Department reviewing strategic options for loan book, including sale or consolidation with other loans
We therefore asked the Department how, if it did not have estimates of future costs beyond 2025–26, it was modelling the expected balance of costs against income in future years. It replied that it was conducting 24 Qq 62, 73; C&AG’s Report, paras 10 and 2.9 25 Qq 67, 71, 72 26 Q 80; C&AG’s Report, paras 10...
Matched on
terms: cost, public
Committee recommendation
65match
#6 - Assess effectiveness and value-for-money of teacher pay against other recruitment initiatives
The Department recognises pay as important in recruiting and retaining teachers, but is less clear on how it considers pay alongside other initiatives and how schools and colleges can afford pay rises. Pay is important in recruiting and retaining teachers. The Department’s influence on pay differs between schools and colleges, for schools, it sets pay ranges and then...
Matched on
terms: benefit, public
Committee recommendation
65match
#14 - Historical choice of private financing for 'fiscal illusion' is not appropriate practice
Historically, private financing was sometimes selected over public financing because it did not increase short-term government borrowing. This kept public sector debt levels down, as the assets were considered off-balance sheet for national accounts purposes. The Office for Budget Responsibility called this a “fiscal illusion”: where the accounting measure does not reflect the true fiscal implications of a...
Matched on
terms: project, public
Committee recommendation
62match
#1 - Provide comprehensive cost estimates and actual expenditures for the new Office for Value for Money.
The Treasury must provide an estimate of how much the OVfM will cost including the cost of any external consultants it intends to procure, and then provide the actual cost of OVfM after it completes its initial work. (Recommendation, Paragraph 6) Duplication
Matched on
terms: cost
Committee recommendation
62match
#20 - Provide clarity on public expenditure for industrial strategy and Growth Mission through Spending Review.
We recommend that through the Spending Review the Government provides clarity about the sum of public expenditure that will be allocated to the industrial strategy and the wider Growth Mission over the remainder of this Parliament. (Recommendation, Paragraph 91) Pro-business environment
Matched on
terms: public
Committee recommendation
62match
#3 - Provide government departments and public routine access to UKRI funding allocation data.
There is insufficient clarity about, and visibility of, where UKRI is investing its money. Knowing where UKRI invests its money is essential to good financial management, while also helping organisations in the private sector to guide their investment decisions. For example, it can be more attractive for investors, and more effective for government, to invest in geographic regions...
Matched on
terms: public
Committee recommendation
62match
#4 - GT-EPD scrutiny limited due to informal negotiation and absent economic impact analysis.
We welcome the extension of the treaty parliamentary scrutiny period from 10 to 20 sitting days, as set out in the Trade Strategy. However, we regret that scrutiny of the GT-EPD are limited due to the trade-related provisions having been negotiated outside a formal treaty process, and that an economic impact analysis or framework has not been published....
Matched on
terms: analysi
Committee recommendation
62match
#1 - Unclear economic benefits of airport expansion due to insufficient government evidence.
While airport expansion is likely to provide some economic growth through growth of the aviation sector, the level of growth to the UK economy provided by airport expansion is unclear and the Government has so far failed to provide substantial supporting evidence. (Conclusion, Paragraph 13)
Matched on
terms: benefit
NAO recommendation
59match
Progress with the merger of the Foreign & Commonwealth Office (FCO) and the Department for International Development (DFID)
The Cabinet Office should ensure there is proper consideration of the costs and benefits of major MoG changes and provide longer-term support and guidance to departments facing significant organisational change. Once the decision has been taken to implement a MoG change, the Cabinet Office should: ? provide guidance on a consistent method of tracking costs, including some measure...
Matched on
terms: benefit, cost
Inquiry recommendation
59match
RHI-39 - Ministerial Familiarity with Legislation
Any Minister presenting the Assembly with legislation for approval should sufficiently read and familiarise themselves with that legislation and ensure an adequate evidence base is publicly available to demonstrate that the benefits justify any attendant costs.
Matched on
terms: benefit, cost, public
PFD report
57match
Mark Welsh
Transport for London displayed an inordinate delay in implementing pedestrian crossings at a dangerous junction, using flawed decision-making based on incomplete accident statistics that omitted overall incidents and near misses.
Matched on
terms: incomplete
Committee recommendation
57match
#8 - HMRC significantly underestimated additional tax revenue from online marketplace VAT liability legislation.
In January 2021 government introduced legislation making online marketplaces liable for VAT from overseas sellers, resulting in £1.5 billion of additional tax a year. This is five times greater than HMRC estimated at the time.15 We asked HMRC why this was, and it explained that the volume of online sales had increased but also that it had imperfect...
Matched on
terms: public
Committee recommendation
57match
#3 - UK exporters face worse US trade terms; GT-EPD economic impact remains uncertain.
We welcome the Government’s work to date in securing swift tariff relief for key sectors under the GT-EPD and acknowledge the progress made in challenging circumstances. However, we must acknowledge that UK exporters are now trading with our most significant single trading partner on terms which are worse than before President Trump came to office. Because ministers have...
Matched on
terms: analysi
NAO recommendation
56match
Specialist skills in the civil service
The Cabinet Office should work with all functions to develop and report consistent and well-evidenced data on functions’ performance, costs and benefits, building on assurance work done to date.
Matched on
terms: benefit, cost
NAO recommendation
56match
Digital transformation in the NHS
c) Collect more data to enable a better understanding of the full cost of delivering digital transformation and prioritise the work programme. Essential work to lay the foundations of digitisation and interoperability (including data standardisation) should be done before investment in newer technologies. There should be robust assessment of the whole-life costs and benefits of different approaches to...
Matched on
terms: benefit, cost
Committee recommendation
53match
#6 - Second Report - The Integrated Rail Plan for the North and Midlands
Without having completed a full analysis of the wider economic impacts, it is difficult to see how the Government has fully assessed the levelling-up agenda and the case for different NPR options. Leaving out these key elements of analysis means that the value for money and economic return cannot be compared and validated.
Matched on
terms: analysi
Committee recommendation
53match
#28 - MoJ lacks confidence in securing resources for criminal justice reforms
We asked witnesses for a breakdown of the £477 million received in the 2021 Spending Review, and an outline of what it achieved. We were told that it “depends on what the counterfactual is”. Without that funding, MoJ told us that the backlog would have been “even worse” and that it did “as much as it could”.79 We...
Matched on
terms: public
Committee recommendation
53match
#27 - Ministry of Justice cannot quantify total spending on Crown Court backlog accurately.
As the NAO report found, MoJ cannot put a figure on how much has been spent on addressing the backlog in the Crown Court, as actions to address the backlog are spread over different parts of the criminal justice system.73 Judicial and staffing capacity, physical court capacity, the rate at which new cases come into the court and...
Matched on
terms: public