Select Committee · Public Administration and Constitutional Affairs Committee

The Government’s management of its major projects

Status: Closed Opened: 3 Feb 2020 Closed: 29 Jul 2020 23 recommendations 10 conclusions 1 report

The Government’s Major Projects Portfolio (MPP) has 133 projects with a value of £423 billion, and these are only a fraction of the projects delivered by Government. Major projects are the main mechanism by which the government invests in infrastructure, transforms services, and improves IT. The MPP includes high-profile projects such as Crossrail, Gov UK … Show more

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Reports

1 report
Title HC No. Published Items Response
Third Report - Delivering the Government’s infrastructure c… HC 125 28 Jul 2020 33 Responded

Recommendations & Conclusions

16 items
3 Recommendation Third Report - Delivering the Governmen… Accepted

The Government should publish its infrastructure strategy as soon as possible, and certainly before it...

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, … Read more

Government response AI summary
The government committed to publishing its National Infrastructure Strategy (NIS) later this year, stating it was delayed due to the pandemic, and confirmed the NIS would link objectives, include ambitions for decarbonisation and levelling up, and respond to NIC recommendations.
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4 Recommendation Third Report - Delivering the Governmen… Accepted

The Government must be clear on what it means by “levelling up” if it is...

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 … Read more

Government response AI summary
The government stated that the National Infrastructure Strategy (NIS), delayed until later this year, would set out further details on its long-term ambitions, including levelling up, thus committing to provide clarity on the term.
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6 Recommendation Third Report - Delivering the Governmen… Accepted

The Cabinet Office needs to take a more active lead on co-ordinating infrastructure investment in...

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 … Read more

Government response AI summary
The government shares the Committee's view on early-stage involvement and coordination. They are undergoing a review, supporting the National Infrastructure Strategy, leading 'Project Speed,' and implementing the 'Get to Green' programme. The IPA will also include more information on early project development support in future …
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7 Conclusion Third Report - Delivering the Governmen… Accepted

It is clear from the evidence submitted to this inquiry that Government infrastructure projects are...

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. Read more

Government response AI summary
The government outlines a new consultation, 'Planning for the future,' launched to reform the planning system and ensure local communities are consulted from the beginning to address local needs. It also notes that NIC recommendations are being considered as part of the forthcoming National Infrastructure …
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9 Recommendation Third Report - Delivering the Governmen… Accepted

The Government must also reconsider what infrastructure will be needed in coming years, reflecting on...

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 … Read more

Government response AI summary
The government accepted the recommendation, stating that the National Infrastructure Strategy (NIS) will outline long-term infrastructure ambitions based on the current economic context, and will be provided to the Committee upon publication.
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10 Conclusion Third Report - Delivering the Governmen… Accepted

The Committee heard evidence that investment in major cities, including London, has more immediate economic...

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 AI summary
The government acknowledges the committee's observation about immediate economic benefit in major cities but states it has already taken steps since 2019 to incorporate social value into procurements and train buyers to address this imbalance.
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11 Recommendation Third Report - Delivering the Governmen… Accepted

If the Government wants to invest in areas of slower economic growth, including the North,...

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 … Read more

Government response AI summary
The government states that a revised Green Book will be published at the Spending Review, which will include a greater focus on policy objectives and regional impacts for investment appraisals.
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12 Recommendation Third Report - Delivering the Governmen… Accepted

HM Treasury should update the Green Book as promised, in particular to reflect these wider...

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 … Read more

Government response AI summary
The government accepted the recommendation, confirming that a revised Green Book will be published at the Spending Review, incorporating findings from a review focused on appraisal strategy, policy objectives, and regional impacts of interventions.
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16 Conclusion Third Report - Delivering the Governmen… Accepted

Far too often, project managers and ministers prioritise time and cost at the expense of...

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. Read more

Government response AI summary
The government acknowledges that further work is needed to ensure project benefits are not overlooked. They state that the IPA has embarked on the 'Get to Green programme' to establish a system-wide framework and toolkit that will drive best practices in project delivery across government, …
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18 Recommendation Third Report - Delivering the Governmen… Accepted

The Committee welcomes Nick Smallwood’s statement that major projects should remain in the GMPP until...

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 … Read more

Government response AI summary
The government responded by stating that existing Gateway 5 reviews are repeatable and can be undertaken regularly or annually to check project delivery and outcomes, implying the current process already allows for periodic reporting on past projects.
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21 Recommendation Third Report - Delivering the Governmen… Accepted

Project data should be reported in ranges, which reflect quantified risks to costs and timescales.

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 … Read more

Government response AI summary
The government accepted the recommendation, stating its aim for projects to use cost and schedule ranges. It confirmed that departments are already reporting data in ranges and the IPA is working to refine guidance and strengthen its assurance regime for this new reporting method.
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22 Recommendation Third Report - Delivering the Governmen… Accepted

Projects which are particularly risky or high profile should invest more time up front, and...

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. Read more

Government response AI summary
The government highlights its existing 'Get to Green' programme and published Project Principles aimed at improving project delivery. It states that the IPA benchmarking hub will support departments in identifying best practice, addressing the committee's call for reporting on methods.
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23 Conclusion Third Report - Delivering the Governmen… Accepted

Not enough is done to involve local people in decision making at an early stage.

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 … Read more

Government response AI summary
The government states that early and transparent community engagement is a legal requirement and that the "Planning for the Future" initiative is changing citizen engagement with the planning system, detailing existing pre-application consultation processes for major infrastructure projects.
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26 Recommendation Third Report - Delivering the Governmen… Accepted

The Government must give further consideration to civil service upskilling if it is to deliver...

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 … Read more

Government response AI summary
The government agrees on the importance of training and skills, and is undertaking salary benchmarking and reviewing pay incentives for SROs and project leaders. Proposals for capability-based pay progression for SCS roles are also in development for potential implementation from April 2021.
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27 Recommendation Third Report - Delivering the Governmen… Accepted

SROs should lead a project from start to completion, and remain accountable for delivering benefits...

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 … Read more

Government response AI summary
The government agrees on consistent SRO leadership and is exploring measures for retention, including pay and progression. Crucially, it commits that SRO time commitment will be agreed upon appointment and reviewed at key stages, with satisfactory arrangements required for project approval.
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32 Recommendation Third Report - Delivering the Governmen… Accepted

Departments with large projects should, from 2021, be able to demonstrate compliance with the recommendations...

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’ … Read more

Government response AI summary
The government agreed that project data should be consistent across various reporting mechanisms and announcements, stating that data published in the IPA annual report, provided by departments, should be reconciled with departmental announcements.
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Oral evidence sessions

2 sessions
Date Witnesses
7 Jul 2020 Nick Smallwood · Infrastructure and Projects Authority, Rt Hon Jesse Norman MP · Department for Transport, The Lord Agnew of Oulton DL View ↗
9 Jun 2020 James Heath · National Infrastructure Commission, Professor Henry Overman, Sir John Armitt · National Infrastructure Commission, Tom Thackray · CBI View ↗

Who gave evidence

7 witnesses
WitnessOrganisationSessions
James Heath National Infrastructure Commission 1
Nick Smallwood · CEO Infrastructure and Projects Authority 1
Professor Henry Overman 1
Rt Hon Jesse Norman MP Department for Transport 1
Sir John Armitt · Chair National Infrastructure Commission 1
The Lord Agnew of Oulton DL 1
Tom Thackray · Infrastructure and Energy Policy Lead CBI 1

Correspondence

4 letters
DateDirectionTitle
8 Dec 2020 To cttee Letter from Nic Smallwood, CEO Infrastructure and Projects Authority on Nationa…
17 Nov 2020 To cttee Letter from Lord Agnew, Minister of State HM Treasury and Cabinet Office on Maj…
14 Oct 2020 From cttee Letter to Lord Agnew on Government Response to Committee's third Report dated 1…
29 Apr 2020 To cttee Letter from Gareth Davies, Comptroller and Auditor General, response to PACAC m…

Meetings & visits

1 item
DateTypeDetail
5 May 2020 Formal meeting The Government’s management of its major projects · Virtual meeting