Recommendations & Conclusions
9 items
5
Conclusion
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 nationally co-ordinated and directed to areas of greatest need. The National Infrastructure Commission was created to overcome silos, and while the Committee welcomes the NIC’s commitment to overcoming political barriers through its impartial reporting, it is not clear it has the power to really break through politicised and decentralised decision making, which sits within Central Government. The Committee welcomes Lord Agnew’s commitment to early involvement in decision making.
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Government response AI summary
The government acknowledges the committee's observations, highlighting the existing institutional framework for infrastructure and the central role of the National Infrastructure Commission, stating it will build on this further upon publishing the National Infrastructure Strategy (NIS).
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13
Conclusion
Third Report - Delivering the Governmen…
Acknowledged
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 AI summary
The government acknowledged the value of locally-led infrastructure investment and recognized concerns about local capability and capacity. It stated a commitment to ensuring and building project delivery capability across regions to effectively utilise and deliver future funding.
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15
Recommendation
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 by stating it will boost economic outcomes across the country. The Committee therefore expects the Government to be able to demonstrate growth as a result of this spend in future years.
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Government response AI summary
The government explains that its existing Green Book methodology and IPA gateway reviews already focus on benefit realisation, with departments responsible for publishing data. The IPA is currently exploring how to publish benefits in future Annual Reports, acknowledging the need for demonstration.
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17
Recommendation
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 current forecasts) alongside a narrative of transformational benefits promised.
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Government response AI summary
The government agrees that benefits should be reported and encourages departments to publish their data. However, the IPA is only 'taking steps to explore' how benefits can be published in future Annual Reports, without committing to the specific timeline, standardised financial measures, or trend data …
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19
Recommendation
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 it receives NAO reports on projects, it calls the ministers and senior civil servants who were in place during set up, where that is appropriate, to give evidence.
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Government response AI summary
The government states it supports giving evidence to the Public Accounts Committee when requested, implying it will cooperate with existing accountability mechanisms but not explicitly committing to creating a new mechanism for holding *previous* ministers and SROs to account.
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20
Conclusion
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 delivery, sometimes leading to reductions in outputs or benefits as project-managers struggle to keep project timescales and costs in check.
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Government response AI summary
The government acknowledges the issues of over-optimistic estimates and is working to improve project outcomes through Project Principles, a centralized data platform, and Ministerial training to ensure more consistent cost and timescale estimations across departments.
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25
Conclusion
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 its infrastructure plans.
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Government response AI summary
The government recognised that capability is a constraint on infrastructure plans and highlighted ongoing IPA efforts to improve and accelerate this through recruitment, development, and remuneration, with further consideration planned for the upcoming Spending Review.
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29
Conclusion
Third Report - Delivering the Governmen…
Acknowledged
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 …
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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 reports and in Departmental annual reports and accounts do not enable individuals to know whether projects are in line with what the public was promised when projects were devised.
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Government response AI summary
The government asserted it is 'world leading' in major project data publication and described existing transparency measures, while also stating the IPA is taking steps to investigate more robust and expeditious publishing of data.
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33
Recommendation
Third Report - Delivering the Governmen…
Acknowledged
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
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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
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Government response AI summary
The government agrees on the importance of highlighting project changes quickly and states the IPA will be taking steps to look into publishing data faster, while encouraging departments to publish their own data.
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