Recommendations & Conclusions
33 items
1
Conclusion
Third Report - Delivering the Governmen…
The Government has committed to the largest investment in infrastructure in decades, which it believes has the potential to support a fairer and more equitable national economy. However, there is also great potential to waste this money on “white elephant” projects if it is not invested wisely. Evidence the Committee …
Government response. This Government’s levelling up agenda will spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth in the UK. It targets the long-standing economic and social disparities across the country, giving everyone growing up in …
2
Conclusion
Third Report - Delivering the Governmen…
The overall framework for this investment should be provided by the National Infrastructure Strategy, but this is significantly delayed and has yet to be published. The Government is keen to spend money quickly as part of the Coronavirus “bounce back” but it needs to publish the overall infrastructure strategy to …
Government response. This Government’s levelling up agenda will spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth in the UK. It targets the long-standing economic and social disparities across the country, giving everyone growing up in …
3
Recommendation
Third Report - Delivering the Governmen…
The Government should publish its infrastructure strategy as soon as possible, and certainly before it starts spending large amounts of money on infrastructure. The plan must clearly link the Government’s objectives for the economy and the planed infrastructure investment. It should either include an assessment of regional or local needs, …
Government response. Government believes that infrastructure is central to our economic strategy. Along with the Spending Review, the National Infrastructure Strategy was delayed to later this year to ensure that HM Treasury and departments could remain focused on responding to the immediate …
4
Recommendation
Third Report - Delivering the Governmen…
The Government must be clear on what it means by “levelling up” if it is to plan projects which lead to “levelling up” and measure progress against them. The Committee expects that the infrastructure strategy will be clear on what levelling up means in practice, how infrastructure investment will contribute …
Government response. Government believes that infrastructure is central to our economic strategy. Along with the Spending Review, the National Infrastructure Strategy was delayed to later this year to ensure that HM Treasury and departments could remain focused on responding to the immediate …
5
Conclusion
Third Report - Delivering the Governmen…
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 example new houses without transport links); or it is not …
Government response. The Government’s institutional framework for infrastructure and major projects has undergone significant change and improvement in recent years. The National Infrastructure Commission (NIC), IPA and HM Treasury are at the heart of this framework. The NIC’s impartial, expert advice is …
6
Conclusion
Third Report - Delivering the Governmen…
The Cabinet Office needs to take a more active lead on co-ordinating infrastructure investment in line with a national strategy. It should be involved in the early stages of Delivering the Government’s infrastructure commitments through major projects 33 project development and lead on co-ordinating the national infrastructure effort. The Committee …
Government response. Government shares the Committee’s view that projects and programmes should be set up for success from their initial policy stages, and that early-stage involvement, including with controls, is essential to this. The Cabinet Office is currently undergoing a short review …
7
Conclusion
Third Report - Delivering the Governmen…
It is clear from the evidence submitted to this inquiry that Government infrastructure projects are progressed before due consideration is given to how they will address local needs. This practice increases the risk of infrastructure not addressing local needs, and therefore not supporting economic growth.
Government response. some time and Public Consultation was stipulated in the Localism Act 2011 and referenced in the Planning Act 1990. On the 6 August the Ministry of Housing, Communities and Local Government (MHCLG) launched a consultation, Planning for the future1, which …
8
Conclusion
Third Report - Delivering the Governmen…
Government should prioritise understanding local needs. Fully populated local needs assessments should be published when projects are announced to demonstrate the purpose of such projects. The IPA should require these assessments as part of the documentation for projects in the Government Major Projects Portfolio (GMPP) and it should also check …
Government response. benefits a project or a programme will deliver. As part of the Green Book methodology, the Government seeks to identify the option most likely to offer the best social value against the Government’s objectives. This is determined by appraising all …
9
Recommendation
Third Report - Delivering the Governmen…
The Government must also reconsider what infrastructure will be needed in coming years, reflecting on the experience of Coronavirus. For example, if more jobs will move to home working, whether this might create a greater need for faster broadband rather than new roads. This post-Covid view of infrastructure should be …
Government response. The NIS will set out the government’s long-term infrastructure ambitions based on the current economic context. The Treasury will ensure that the Committee receives a copy of the NIS when it is published later this year.
10
Conclusion
Third Report - Delivering the Governmen…
The Committee heard evidence that investment in major cities, including London, has more immediate economic benefit than investing in areas where there is currently slower economic growth.
Government response. Major cities, including London, generally have higher levels of existing capital stock, which results in a more immediate economic benefit than some regions of the country where economic growth may be slower. However, this does not take account of social …
11
Conclusion
Third Report - Delivering the Governmen…
If the Government wants to invest in areas of slower economic growth, including the North, regions and rural areas, it needs to be clear on the objectives of that investment, and set a framework for departments to appraise that investment so that it can pass the TAP hurdles. That might …
Government response. A revised Green Book will be published at Spending Review (SR) following the review which is looking into, for example, Benefit Cost Ratios, the current appraisal strategy and aspects of the five case model. HMT have ensured that findings from …
12
Conclusion
Third Report - Delivering the Governmen…
HM Treasury should update the Green Book as promised, in particular to reflect these wider Government objectives. There is a pressing need to publish this update so that new infrastructure investment can be appraised in line with its guidelines. The Committee would like it to be published no later than …
Government response. A revised Green Book will be published at Spending Review (SR) following the review which is looking into, for example, Benefit Cost Ratios, the current appraisal strategy and aspects of the five case model. HMT have ensured that findings from …
13
Conclusion
Third Report - Delivering the Governmen…
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. Government’s levelling up agenda seeks to spread opportunity to every region and nation of the UK; ensuring everyone benefits from growth as well as decarbonising the economy. It targets the long-standing economic and social disparities across the country, giving everyone …
14
Conclusion
Third Report - Delivering the Governmen…
If the Government is serious about its levelling up agenda, it should consider how it takes into account local needs when determining infrastructure projects. The Committee would like the Cabinet Office to respond to this report outlining whether it intends to deploy the new infrastructure funding through a mix of …
Government response. Government recognises the important role of local areas in infrastructure, and has devolved significant funding to Mayoral Combined Authorities in England through the Transforming Cities Fund and 30 year Mayoral ‘gainshare’ commitments. Full details of our ambitions for infrastructure funding …
15
Conclusion
Third Report - Delivering the Governmen…
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 justify spending millions of pounds on infrastructure during economically-uncertain times …
Government response. A key part of the Green Book methodology is to set out forecasted benefits and benefit realisation. In support of this, the IPA reviews benefit realisation at gateway reviews, crucially at Gateway 5 reviews, which focus on a review of …
16
Conclusion
Third Report - Delivering the Governmen…
Far too often, project managers and ministers prioritise time and cost at the expense of benefits. The Committee has heard of projects delivering benefits that are reduced to the point of no longer exceeding the costs, or more frequently, the benefits being unclear entirely upon delivery.
Government response. The UK Government delivers some of the most challenging, complex and innovative projects in the world. The scope and scale of these projects easily rivals the private sector, and some are the biggest in the world. It is crucial to …
17
Conclusion
Third Report - Delivering the Governmen…
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 outset, alongside any agreed changes at specific dates, up to …
Government response. including benefits being properly scoped and understood. Government agrees that benefits should be reported and the IPA encourages departments to publish their own data and provide information to Parliament and committees setting out forecasted and realised benefits throughout the project …
18
Conclusion
Third Report - Delivering the Governmen…
The Committee welcomes Nick Smallwood’s statement that major projects should remain in the GMPP until Gate 5. The Committee would like the IPA to consider periodic reporting on past projects, perhaps at five-year intervals, to assess whether they have achieved their benefits. The IPA should write to the Committee in …
Government response. through the Gateway 5 assurance process. Gateway 5 reviews are repeatable, and IPA/ departments often recommend they are undertaken regularly to maintain accountability for project outcomes. The first Gateway 5 Review typically occurs when the project is about to hand …
19
Conclusion
Third Report - Delivering the Governmen…
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 the Chair of Public Accounts Committee (PAC) asking that when …
Government response. Government supports giving evidence to the Public Account Committee where it is requested.
20
Conclusion
Third Report - Delivering the Governmen…
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 early estimates can then shape the rest of the project …
Government response. The IPA strives to build the best-performing project system of any country in the world and is taking bolder action to work towards this ambition and improve outcomes. This work is being done through the publication of Project Principles, the …
21
Conclusion
Third Report - Delivering the Governmen…
Project data should be reported in ranges, which reflect quantified risks to costs and timescales. The IPA should start reporting ranges for any newly-approved projects immediately, and HM Treasury should state an expectation that projects going through Treasury Approval Processes (TAP) present ranges as a default.. (Paragraph 92) Delivering the …
Government response. Government’s aim is to ensure projects are not locked into unrealistic point estimates when announcements are made, and projects use ranges when presenting costs and schedules. This was requested in the last quarterly Government Major Projects data return from departments …
22
Conclusion
Third Report - Delivering the Governmen…
Projects which are particularly risky or high profile should invest more time up front, and consider approaches such as shadow cost modelling. The IPA should report on the methods used on the GMPP which can be viewed as best practice for other Government projects.
Government response. initial policy stages. This is why the IPA has put in place the Get to Green programme which will establish the new framework, new assurance and support arrangements for departments in improving project delivery and have published Project Principles. There …
23
Conclusion
Third Report - Delivering the Governmen…
Not enough is done to involve local people in decision making at an early stage. The Committee heard that decisions are made about a project before consultation happens, and that late consultation can be insufficient to overcome local opposition. This can result in delays to projects, but it can also …
Government response. As mentioned in our response to recommendation 7, early and transparent community engagement is a legal requirement and through Planning for the Future we are changing the culture and engagement of citizens with the planning system. In terms of large …
24
Conclusion
Third Report - Delivering the Governmen…
All projects should include proper public consultation as part of the early decision making phase. Projects should consider setting up an independent arm to lead on public engagement that is proportionate to the scale and profile of the project. Projects should be able to demonstrate their engagement as part of …
Government response. The Government recognises the strong relationship between ‘assurance’ and ‘controls’ and the Get to Green programme is an opportunity for the IPA and HM Treasury to reinforce this. The IPA’s Get to Green programme will put in place a system-wide …
25
Conclusion
Third Report - Delivering the Governmen…
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 needs to recognise that capability is a potential constraint on …
Government response. delivery has never been more vital. People are the foundation upon which all project delivery is built. Government recognises that capability takes time to build and the IPA is working to put in place the structures needed to drive sustained …
26
Recommendation
Third Report - Delivering the Governmen…
The Government must give further consideration to civil service upskilling if it is to deliver its infrastructure commitments, which might include a commitment to making salaries more competitive, at least in the short term. The Cabinet Office should review whether a separate pay system or allowance for SROs and valuable …
Government response. The Government agrees that training and improving skills are integral to delivery of commitments. We are currently undertaking salary benchmarking for project roles against comparators in the private sector and reviewing pay incentives for SROs and other project leaders in …
27
Conclusion
Third Report - Delivering the Governmen…
SROs should lead a project from start to completion, and remain accountable for delivering benefits after completion. Heads of Departments should ensure that the right incentives are in place to retain SROs, including career or pay progression opportunities as appropriate. SROs should have enough time to lead properly the projects …
Government response. Government agrees that consistency of leadership is very important in major projects. SRO turnover has reduced in recent years and the IPA is looking at measures to improve retention further, including pay, reward, and progression. There should be agreement from …
28
Recommendation
Third Report - Delivering the Governmen…
The Committee welcomes the introduction of training for ministers in project management. It is important that ministers take the opportunity provided to educate themselves better about how projects are delivered and how they can have an impact on that, both positively and negatively. The Committee expects that all Secretaries of …
Government response. In order to build capability, we plan to put in place a new, more rigorous approach to accreditation for government project delivery professionals, linked to external professional standards, and coupled with required development, to drive an improvement in project delivery …
29
Conclusion
Third Report - Delivering the Governmen…
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 Committee also notes that the standalone data published in IPA …
Government response. The UK Government is world leading in the amount and detail of the data that is published about major projects, in addition to the annual report the IPA publishes further specific information on all GMPP projects3 including, departmental narratives on …
30
Recommendation
Third Report - Delivering the Governmen…
As responsibility for policy on major projects and their management is shared across two departments, the Cabinet Office and HM Treasury should write to the Committee setting out the standardised data they expect departments to collect on the most significant projects. From 2020–21, all departments should publish this information in …
Government response. Departments provide the IPA with standardised data on Government’s major projects on a quarterly basis. This data collection is moving onto the Oscar II system which is used by both the Cabinet Office and HM Treasury. The IPA collects this …
31
Recommendation
Third Report - Delivering the Governmen…
The IPA should review the data that it publishes in its Major Project Annual Report, and this should be extended at least to add timelines of project approvals and estimates.
Government response. The UK Government publishes significant detail and data on the government’s major project portfolio. As part of the annual report the IPA publishes specific information on all GMPP projects4 including, departmental narratives on the whole life costs, schedules (including any …
32
Conclusion
Third Report - Delivering the Governmen…
Departments with large projects should, from 2021, be able to demonstrate compliance with the recommendations of the 2019 Government financial reporting review, the revised Financial Reporting Manual and the forthcoming thematic review of project reporting review of accounts, which included publishing trends in project data. Project data published in departments’ …
Government response. 4 Annual Report on Major Projects 2019 to 2020, consolidated data and narratives 5 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/827229/ Government_Major_Projects_Portfolio_-_Senior_Responsible_Owners_list_September_2018.csv/preview the 2019 Government financial reporting review, the revised Financial Reporting Manual and the forthcoming thematic review of project reporting review of accounts, which included …
33
Conclusion
Third Report - Delivering the Governmen…
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 the Government’s infrastructure commitments through major projects 37
Government response. The UK is a world leader in having a cross-governmental understanding of the size, scope and viability of the GMPP. Government agrees that highlighting changes to projects as soon as feasible is essential. The IPA encourages departments to publish their …