Select Committee · Public Accounts Committee

Delivering value from government investment in major projects

Status: Closed Opened: 10 Jan 2024 Closed: 29 May 2024 5 recommendations 17 conclusions 1 report

Both the Committee and the National Audit Office (NAO) scrutinise how major projects are delivered, including inquiries on resetting of Government programmes and lessons from major projects and programmes . As part of this theme, the NAO’s report on delivering value from Government investment in major programmes looks at a small selection of projects, including …

Reports

1 report
Title HC No. Published Items Response
Thirty-Second Report - Delivering value from government inv… HC 456 15 May 2024 22 Responded

Recommendations & Conclusions

22 items
2 Recommendation Thirty-Second Report - Delivering value… Not Addressed

Develop a plan to incentivise departments to conduct high-quality, independent major project evaluations.

Government departments still have few incentives to commission and carry out high-quality evaluations of major projects. High quality evaluation is an important means of providing evidence about what works, transparency about what value a project has produced, and making the case (or not) for further investment. As we pointed out …

Government response. The government agrees with the recommendation to develop a plan for incentivising evaluations, but its response discusses supplier and market engagement with SMEs and TechUK, which is irrelevant to the committee's specific request for an evaluation plan.
HM Treasury
3 Recommendation Thirty-Second Report - Delivering value… Not Addressed

Analyse and issue guidance on governance for effective cross-government major projects.

There are signs of improved cross-government working but government still struggles to establish effective governance and accountability arrangements on the most complex projects where multiple departments are involved. In our February 2024 report on cross-government working in general we concluded that “effective cross-government working is fundamental to delivering government’s 6 …

Government response. The government agrees with the recommendation to analyze governance structures for cross-government working and issue guidance. However, its response focuses on the existing Digital, Data and Technology Playbook for managing digital projects, rather than addressing the broader request for general …
HM Treasury
4 Recommendation Thirty-Second Report - Delivering value… Accepted

Submit analysis of skills shortage risks to government's infrastructure project portfolio.

Government departments and the broader economy lack the necessary skills and capacity to deliver the government’s ambitious portfolio of major infrastructure projects. The UK’s projected spend on infrastructure projects over the next five years is very high—unprecedented, according to the IPA—with the UK building more than it has ever built …

Government response. The government agrees to the recommendation and will provide further detail to the Committee in December, aligning with a target implementation date of December 2025.
HM Treasury
5 Recommendation Thirty-Second Report - Delivering value… Accepted

Outline plans to incentivise departments to populate IPA benchmarking hub with project data.

The IPA’s plans to improve the quality of government’s cost estimates of major projects have taken too long to implement. We have examined many projects Delivering value from government investment in major projects 7 where early cost estimates have proved to bear little resemblance to what a project will ultimately …

Government response. The government agrees with the recommendation and will provide further detail to the Committee in December, consistent with the target implementation date.
HM Treasury
6 Recommendation Thirty-Second Report - Delivering value… Not Addressed

Outline plans for embedding cross-government learning in future major projects.

Government departments do not routinely learn lessons from their own projects or those of other departments, so are missing opportunities to improve effectiveness and efficiency of future projects. Applying learning about what has been successful in major project delivery can bring great efficiency and reduced costs, particularly where standardisation of …

Government response. The government agrees with the recommendation to outline plans for embedding cross-government learning. However, its response outlines reviews of commercial and digital functional standards, development of a standard taxonomy, and reviews of controls and assurance frameworks, which are not direct …
HM Treasury
1 Conclusion Thirty-Second Report - Delivering value… Not Addressed

Committee took evidence from IPA and HM Treasury based on C&AG report.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Infrastructure and Projects Authority and HM Treasury.1

Government response. The committee item is a factual statement about taking evidence from the IPA and HM Treasury. The government responds by agreeing to the 'recommendation' and detailing actions related to digital functions, a Technical Design Authority, and strategic supplier relationship management, …
HM Treasury
7 Conclusion Thirty-Second Report - Delivering value… Not Addressed

High-quality evaluation essential for robust evidence, transparency, and delivering project value.

High quality evaluation is an important means of providing evidence about what works and transparency about what value a project has produced. In our May 2022 report on government’s use of evaluation and modelling, we stated: “Without the right incentives, improvements to oversight and culture, and addressing challenges such as …

Government response. Despite stating agreement, the government's response details its efforts to encourage international collaboration on antimicrobial products and antibiotic innovation, including commissioning an evaluability assessment from July 2025 to early 2026. This does not address the committee's conclusion on the importance …
HM Treasury
8 Conclusion Thirty-Second Report - Delivering value… Not Addressed

Insufficient evaluations of government major projects, with significant departmental gaps remaining.

There are too few evaluations of government’s major projects. As we pointed out in our May 2022 report on the use of evaluation and modelling in government, in 2019, only 8% of £432 billion of spend on major projects had robust impact evaluation plans in place, and 64% of spend …

Government response. Despite stating agreement, the government's response focuses entirely on making public health a statutory objective for water companies, regulating sludge, and tackling antimicrobial resistance (AMR) in wastewater, with a White Paper planned for Autumn 2025. This does not address the …
HM Treasury
9 Conclusion Thirty-Second Report - Delivering value… Not Addressed

Persistent barriers, including political disengagement, continue to hinder effective departmental project evaluations.

In our May 2022 report on evaluation, we pointed out that the same barriers to departments doing more evaluations had been in place since 2013. These include a lack of political engagement and a lack of incentives for departments to produce evaluations. HM Treasury told us that it still has …

Government response. Despite stating agreement, the government's response details actions related to monitoring healthcare-associated infections and antimicrobial resistance (AMR) in humans and animals, including a new data dashboard from UKHSA by Autumn 2025 and novel AMR surveillance pilots in animals until 2029. …
HM Treasury
10 Conclusion Thirty-Second Report - Delivering value…

Success of major government projects depends on multi-organisation collaboration and shared stakeholder vision.

Although it is often the case that a single government department has ultimate accountability for delivery of a major project, it is often the case that multiple departments as well other stakeholders and organisations will be involved in delivery and in ensuring that value is delivered. Indeed, success depends on …

HM Treasury
12 Conclusion Thirty-Second Report - Delivering value…

Departments still struggle to naturally achieve effective cross-government working and consistent stakeholder involvement.

In our February 2024 report on cross-government working we concluded that “effective cross-government working is fundamental to delivering government’s priorities but there is a lot of work to do to make it more than just a ‘nice to have’”. However, the IPA told us that ensuring that stakeholders are involved …

HM Treasury
13 Conclusion Thirty-Second Report - Delivering value…

Broad stakeholder engagement and independent non-executive presence enhances successful major project delivery.

The IPA gave us examples where the involvement of stakeholders has been working well. For example, the East-West Rail project’s growth board that brings together local authority and government department and the A303 and Lower Thames Crossing projects have built support from controversial projects. The IPA also told us that …

HM Treasury
15 Conclusion Thirty-Second Report - Delivering value…

Major projects confront significant skills shortages and international competition, risking higher costs and delays.

However, the IPA told us that it is already seeing evidence of current and future skills shortages and stiff competition from other countries with their own major investment programmes for scarce skills. The IPA gave specific examples of skills shortages in trades such welders for building frigates on behalf of …

HM Treasury
21 Conclusion Thirty-Second Report - Delivering value…

Learning lessons from diverse major projects is challenging given poor data sharing and specific objectives.

In our February 2024 report on cross-government working we highlighted that a lack of routine data sharing between departments and poor arrangements for sharing best practice and learning. Learning lessons from major projects can, however, be a challenge because of the nature of some projects. It may not be immediately …

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
20 Mar 2024 Conrad Smewing · HM Treasury, Nick Smallwood · Infrastructure and Projects Authority View ↗

Correspondence

1 letter
DateDirectionTitle
15 Apr 2024 Correspondence from Nick Smallwood, CEO at the Infrastructure and Projects Auth…