Select committee: Transport Committee

Major transport infrastructure projects: appraisal and delivery

Closed Opened 4 Dec 2020 Closed 14 Nov 2022 13 recommendations 5 conclusions
Inquiry scope (the committee's words)
Billions of pounds of investment has been committed during 2020 to the UK’s transport infrastructure. This inquiry will consider: transport infrastructure strategy and priorities; the appraisal and funding of transport infrastructure; oversight, accountability and governance of transport infrastructure projects; factors influencing the cost and capacity and skills required to deliver the infrastructure plans. The extent to which the coronavirus pandemic will affect the necessity and cost-effectiveness of major transport infrastructure projects will factor in the Committee’s work. The Government also has a legal commitment to meet net-zero carbon emissions by 2050 and infrastructure is a major contributor to the UK’s greenhouse gas emissions. Read the call for evidence for more detail about the inquiry .

Where it stands

The inquiry is closed, opened 4 December 2020.

The committee has published 2 reports, most recently Second Report - Major transport infrastructure projects on 29 September 2021.

The government's response to each report

Second Report - Major transport infrastructure projects

Published 24 January 2022. The deadline was 29 November 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government accepts some recommendations, partially accepts others and disagrees with a formal mechanism for additional parliamentary scrutiny of project overruns.

  • On the National Infrastructure Strategy, it "partially agrees" and says "there is not enough evidence to justify amending the NIS at this stage", while longer-term impacts of COVID-19 remain uncertain.
  • It accepts the recommendations on defining "levelling up" and on a worked example. The Levelling Up White Paper will set out a definition, and the Department will publish case studies on major transport investments in 2022.
  • It accepts the principle of cost and schedule ranges, but disagrees with a formal trigger for additional parliamentary scrutiny, saying existing arrangements exist and a trigger "would complicate DfT's role as Project Sponsor and duplicate the function of existing fora".
  • On a transport infrastructure delivery plan, it "partially agrees" but says it does "not plan to publish a single delivery plan", pointing to other publications including a Levelling Up White Paper and the Integrated Rail Plan.

Read the government's response ↗ Report an error

Second Report - Major transport infrastructure projects

No government response linked yet: deadline 29 November 2021, 1798 days ago.

Recommendations and conclusions

  • Conclusion 1Conclusion · Second Report - Major transport infrastructure projects
  • Recommendation 2Recommendation · Second Report - Major transport infrastructure projects
  • Recommendation 3Recommendation · Second Report - Major transport infrastructure projects
All 18 recommendations and conclusions

Reports

All reports

Evidence

  • 3 oral evidence sessionsLatest 7 July 2021
  • 14 witnesses
All evidence

Recent activity

Recommendations and conclusions 18 shown

Conclusion 1

Conclusion · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Concluded (the committee's words)
Subject to devolved responsibilities, the National Infrastructure Strategy’s top-level objectives of supporting the UK economy after coronavirus, addressing regional inequalities and facilitating adaptation to climate change are welcome. However, the Government is yet to articulate the detail on how it will achieve those objectives.

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Recommendation 2

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
The Government may need to amend the National Infrastructure Strategy to account for the evolution of the coronavirus pandemic in the 10 months since the strategy’s publication. To assess whether and how the strategy requires revision, the Government must examine whether the major transport projects in the strategy will still deliver their intended strategic benefits and the Government’s policy objectives, particularly in the context of declining public transport usage, higher levels of home-working and resulting shifts in travel patterns.

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Recommendation 3

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To allow Parliament and the public to judge the effectiveness of the Government’s infrastructure plans, the Government must publish detailed metrics that define and measure the “levelling up” concept.

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Recommendation 4

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
We are concerned that the Department did not explain how the construction of major transport infrastructure projects can support the “levelling up” policy agenda. We would be reassured if the Department were to set out a worked example illustrating how investment in major transport infrastructure projects drives growth and productivity.

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Recommendation 5

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
The Government must utilise accurate, sensitive analytical tools to ensure that the projects that best support connectivity, growth and productivity are the ones that get built. In that context, benefit-cost ratios are useful, but they fail to capture regional inequalities and environmental and social factors. The Government must replace benefit-cost ratios with a “benefit-cost plus” system, which not only takes account of costs and benefits and therefore ensures value for money for the taxpayer, but captures regional inequalities and environmental and social factors.

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Recommendation 6

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To facilitate transparent, honest and constructive public and political engagement with the economic and engineering realities of delivering major infrastructure projects, the Government should establish floors and ceilings for project costs and timescales defining the range within which projects are scheduled for delivery rather than setting single specific targets, which are invariably unhelpful and inaccurate. Any breach of a project’s cost and/or time ceilings should be communicated to the appropriate Select Committee by a formal mechanism, which should trigger intense parliamentary scrutiny to protect the public purse and to support effective project delivery.

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Recommendation 7

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
Government agencies have repeatedly delivered major transport infrastructure projects that exceeded the specified cost and/or delivery date. Senior management of those Government agencies were apparently unaccountable for such overruns. Senior management of Government agencies with ultimate responsibility for project delivery must be incentivised to avoid cost and/or time overruns. The senior management of Government agencies with responsibility for delivering major infrastructure projects should be subject to a formal duty immediately to notify the relevant Select Committee in cases in which cost and/or time ceilings will be exceeded.

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Recommendation 8

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
A discussion paper is an insufficient response to the challenge of ensuring that the UK has the skills to deliver the Government’s ambitious infrastructure agenda. A detailed skills strategy is required. As part of the refresh of the Transport Infrastructure Skills Strategy, the Department must develop a future skills plan in consultation with public and private sector employers to identify and address skills gaps that might delay major projects. Such a strategy should be accompanied by a financial commitment from the Government aimed at addressing specific skills gaps, such as in transport engineering and project management, through apprenticeships and training programmes.

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Recommendation 9

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To ensure that the National Infrastructure Strategy supports (a) the “levelling up” agenda, (b) achieving net zero emissions by 2050 and (c) economic recovery after the coronavirus pandemic, the Government must publish by 25 November 2021 a delivery plan setting out how its transport infrastructure commitments will be implemented to support the National Infrastructure Strategy.

Link to this item · Read this item

Conclusion 1

Conclusion · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Concluded (the committee's words)
Subject to devolved responsibilities, the National Infrastructure Strategy’s top-level objectives of supporting the UK economy after coronavirus, addressing regional inequalities and facilitating adaptation to climate change are welcome. However, the Government is yet to articulate the detail on how it will achieve those objectives.

Link to this item · Read this item

Recommendation 2

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
The Government may need to amend the National Infrastructure Strategy to account for the evolution of the coronavirus pandemic in the 10 months since the strategy’s publication. To assess whether and how the strategy requires revision, the Government must examine whether the major transport projects in the strategy will still deliver their intended strategic benefits and the Government’s policy objectives, particularly in the context of declining public transport usage, higher levels of home-working and resulting shifts in travel patterns.

Link to this item · Read this item

Recommendation 3

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To allow Parliament and the public to judge the effectiveness of the Government’s infrastructure plans, the Government must publish detailed metrics that define and measure the “levelling up” concept.

Link to this item · Read this item

Conclusion 4

Conclusion · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Concluded (the committee's words)
We are concerned that the Department did not explain how the construction of major transport infrastructure projects can support the “levelling up” policy agenda. We would be reassured if the Department were to set out a worked example illustrating how investment in major transport infrastructure projects drives growth and productivity.

Link to this item · Read this item

Recommendation 5

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
The Government must utilise accurate, sensitive analytical tools to ensure that the projects that best support connectivity, growth and productivity are the ones that get built. In that context, benefit-cost ratios are useful, but they fail to capture regional inequalities and environmental and social factors. The Government must replace benefit-cost ratios with a “benefit-cost plus” system, which not only takes account of costs and benefits and therefore ensures value for money for the taxpayer, but captures regional inequalities and environmental and social factors.

Link to this item · Read this item

Recommendation 6

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To facilitate transparent, honest and constructive public and political engagement with the economic and engineering realities of delivering major infrastructure projects, the Government should establish floors and ceilings for project costs and timescales defining the range within which projects are scheduled for delivery rather than setting single specific targets, which are invariably unhelpful and inaccurate. Any breach of a project’s cost and/or time ceilings should be communicated to the appropriate Select Committee by a formal mechanism, which should trigger intense parliamentary scrutiny to protect the public purse and to support effective project delivery.

Link to this item · Read this item

Conclusion 7

Conclusion · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Concluded (the committee's words)
Government agencies have repeatedly delivered major transport infrastructure projects that exceeded the specified cost and/or delivery date. Senior management of those Government agencies were apparently unaccountable for such overruns. Senior management of Government agencies with ultimate responsibility for project delivery must be incentivised to avoid cost and/or time overruns. The senior management of Government agencies with responsibility for delivering major infrastructure projects should be subject to a formal duty immediately to notify the relevant Select Committee in cases in which cost and/or time ceilings will be exceeded.

Link to this item · Read this item

Conclusion 8

Conclusion · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Concluded (the committee's words)
A discussion paper is an insufficient response to the challenge of ensuring that the UK has the skills to deliver the Government’s ambitious infrastructure agenda. A detailed skills strategy is required. As part of the refresh of the Transport Infrastructure Skills Strategy, the Department must develop a future skills plan in consultation with public and private sector employers to identify and address skills gaps that might delay major projects. Such a strategy should be accompanied by a financial commitment from the Government aimed at addressing specific skills gaps, such as in transport engineering and project management, through apprenticeships and training programmes.

Link to this item · Read this item

Recommendation 9

Recommendation · Second Report - Major transport infrastructure projects · Addressed to Department for Transport

Recommended (the committee's words)
To ensure that the National Infrastructure Strategy supports (a) the “levelling up” agenda, (b) achieving net zero emissions by 2050 and (c) economic recovery after the coronavirus pandemic, the Government must publish by 25 November 2021 a delivery plan setting out how its transport infrastructure commitments will be implemented to support the National Infrastructure Strategy.

Link to this item · Read this item

Reports

2 reports

Oral evidence sessions

3 sessions

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Date Session and witnesses Source
7 Jul 2021
Oral evidence session
Nick Joyce · Department for Transport, Rt Hon Grant Shapps MP · Ministry of Defence
View ↗
12 May 2021
Oral evidence session
Alistair Baldwin · Institute for Government, Elliot Shaw · Highways England, Graham Richards · Office of Rail and Road, Jon Loveday · NISTA, Mrs Ruth Humphrey · Siemens, Nick Smallwood · Infrastructure and Projects Authority, Simon Statham · Midlands Connect
View ↗
17 Mar 2021
Oral evidence session
Bridget Rosewell CBE · National Infrastructure Commission, James Heath · National Infrastructure Commission, Jonathan Spruce · Institution for Civil Engineers, The Rt Hon. the Lord Hammond of Runnymede, Tony Meggs CB · Crossrail Ltd
View ↗

Who gave evidence

14 witnesses

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WitnessOrganisationSessions
Alistair Baldwin · Author Institute for Government 1
Bridget Rosewell CBE · Commissioner National Infrastructure Commission 1
Elliot Shaw · Executive Director for Strategy and Planning Highways England 1
Graham Richards · Director of Planning Office of Rail and Road 1
James Heath National Infrastructure Commission 1
Jon Loveday · Director of Infrastructure, Enterprise and Growth NISTA 1
Jonathan Spruce · Fellow Institution for Civil Engineers 1
Mrs Ruth Humphrey · Head of Business Development and Strategy Siemens 1
Nick Joyce · Director General, Corporate Delivery Group Department for Transport 1
Nick Smallwood · CEO Infrastructure and Projects Authority 1
Rt Hon Grant Shapps MP · Secretary of State Ministry of Defence 1
Simon Statham · Chief Technical Officer Midlands Connect 1
The Rt Hon. the Lord Hammond of Runnymede Not recorded 1
Tony Meggs CB · ex-Chairman Crossrail Ltd 1

Correspondence

2 letters

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