Recommendations & Conclusions
30 items
2
Conclusion
44th Report - Governance and decision-m…
Accepted
There are many strategically important projects that will not fall within the OVFM and Treasury’s definition of a mega project. The Treasury and the OVFM’s criteria for what constitutes a mega-project are focused on strategic importance, complexity and cost, with the latter needing to exceed £10 billion to be considered …
Government response. The government agrees with the recommendation and states that the Treasury has already written to the committee, implementing the request to set out the rationale for the £10 billion cost criterion and other circumstances for mega projects.
HM Treasury
3
Conclusion
44th Report - Governance and decision-m…
Accepted
We are not yet convinced there is a coherent approach to making decisions on major projects as part of wider plans for local areas and national missions. The ultimate responsibility for a large and complex project currently sits within one department despite the fact these projects can affect multiple sectors …
Government response. The government agrees with the recommendation and states that the Treasury has already written to the committee, implementing the request for explanations and worked examples on how major and mega project governance will align with Mission and place-based governance.
HM Treasury
4
Recommendation
44th Report - Governance and decision-m…
Accepted
NISTA still has work to do to ensure that it gains assurance about progress with all major projects and that they are governed and assured effectively. The government has been focused on mega- projects and the infrastructure strategy and pipeline but there are over 200 projects on the Government Major …
Government response. The government agrees, stating NISTA is refining data processes and will review the assurance framework. Crucially, the Treasury commits to strengthening departmental capability by linking higher Delegated Authority Limits to compliance with standards and requiring project boards to include accredited …
HM Treasury
5
Conclusion
44th Report - Governance and decision-m…
Accepted
NISTA has a broad and stretching range of responsibilities, which will require it to juggle many competing demands on its resources. NISTA is responsible for infrastructure strategy, major project assurance, project delivery capability and has six objectives covering these broad areas. To fulfil these, NISTA has approximately 200 members of …
Government response. The government agrees, stating NISTA is already making progress in connecting data sources, producing insights, and exploring ways to share performance data. NISTA is also working to implement Project Data Standards, a common reporting platform, and upskilling colleagues in data …
HM Treasury
6
Recommendation
44th Report - Governance and decision-m…
Accepted
It is not clear how NISTA and the Treasury will be held to account for delivery of their infrastructure strategy and pipeline. It is now critical that NISTA and the Treasury deliver on the commitments they have set out. NISTA believes that the role of setting infrastructure strategy is better …
Government response. The government agrees, stating it has already committed to reporting on progress and updating the 10-Year Infrastructure Strategy every two years. NISTA already reports annually on the Government Major Projects Portfolio, and the infrastructure pipeline, published in July 2025, will …
HM Treasury
1
Conclusion
44th Report - Governance and decision-m…
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury (the Treasury), the National Infrastructure and Service Transformation Authority (NISTA) and the Office for Value for Money (OVFM) on governance and decision-making on major projects.1
Government response. The government agrees, stating new bespoke budgeting and governance arrangements for mega projects were set out in June 2025 and will be implemented. The Treasury commits to writing to the Committee with an update on its effectiveness.
HM Treasury
7
Conclusion
44th Report - Governance and decision-m…
Deferred
We asked the Treasury about when major and mega projects are given the approval to proceed and who makes these announcements. The role the Treasury plays in decisions about whether and how to proceed with a mega- project, its purpose and how to fund it is particularly important. At the …
Government response. The government refers to the OVFM study published in June 2025, setting out a new bespoke approach to funding and governance for mega projects, and states the Treasury will provide an update on its effectiveness.
HM Treasury
8
Conclusion
44th Report - Governance and decision-m…
Deferred
The Treasury told us that, following from the OVFM’s report, for mega- projects it proposes to fund a feasibility stage which will be necessarily long enough to clarify objectives and go through the various business case processes, before setting out publicly what the project intends to do. It explained this …
Government response. The government refers to the OVFM study published in June 2025, setting out a new bespoke approach to funding and governance for mega projects, and states the Treasury will provide an update on its effectiveness.
HM Treasury
9
Conclusion
44th Report - Governance and decision-m…
Accepted
We noted the importance of transparency and asked what role this will play in the new process. The Treasury told us a strategy and delivery plan for a mega-project will be published, stating what the aim of the mega-project is and how this will be delivered.16 These Strategy and 10 …
Government response. The government agrees with the Committee’s recommendation and has implemented it.
HM Treasury
10
Conclusion
44th Report - Governance and decision-m…
Deferred
We asked how government will prevent projects being announced too early, noting that politicians are a factor. The OVFM told us that this feasibility stage will try to address this by setting out how governance is going to work, with publication of the strategy and delivery plan for a mega-project …
Government response. The Treasury will write to the Committee with an update on the effectiveness of the new bespoke approach to funding and governance as set out in the Office for Value for Money (OVFM) study.
HM Treasury
11
Conclusion
44th Report - Governance and decision-m…
Deferred
We asked the Treasury to outline what its new supervisory role is going to be for mega-projects. The Treasury explained that it will have a greater role in the governance of mega-projects by requesting a seat at the board and, in its role as financial shareholder, will have far greater …
Government response. The Treasury will write to the Committee with an update on the effectiveness of the new bespoke approach to funding and governance as set out in the Office for Value for Money (OVFM) study.
HM Treasury
12
Recommendation
44th Report - Governance and decision-m…
Accepted
Mega-projects display several characteristics which, when taken together, make them more difficult to deliver than major projects. They often have the potential to be transformational to the economy or society and are scentral to the government’s efforts to achieve its priorities. They may involve high levels of innovation or be …
Government response. The Treasury will write to the Committee by September 2026 with an update on the effectiveness of the revised approach to governance of mega-projects, following the publication of the OVFM study in June 2025.
HM Treasury
13
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked how government will be defining mega-projects. The OVFM told us that its selection criteria is focused on strategic importance, complexity and size, using £10 billion whole-life cost as a threshold. The OVFM’s selection criteria also excludes all scalable projects with repeatable elements, explaining to us that with mega-projects, …
Government response. The government agrees to write to the Committee setting out the rationale for the £10 billion cost criterion for mega projects, and under what circumstances a project’s complexity and importance could justify it being a mega-project even where the £10 …
HM Treasury
14
Recommendation
44th Report - Governance and decision-m…
Accepted
The OVFM and Treasury’s selection criteria for mega-projects excludes a number of complex projects, such as the Lower Thames Crossing and the Oxford-Cambridge arc.27 The exclusion of repeatable and scalable projects also means that the New Hospitals Programme is not classified as a mega-project, a project this committee has previously …
Government response. The Treasury has written to the Committee setting out the rationale for the £10 billion cost criterion for mega projects.
HM Treasury
15
Recommendation
44th Report - Governance and decision-m…
Accepted
The ultimate responsibility for a large and complex project currently tends to sit within one department despite the fact these projects can affect multiple sectors of society and the economy. Delivering these projects can therefore require multiple departments, different tiers of government and other organisations to be involved in the …
Government response. The government agrees to write to the Committee with explanations and worked examples for how major and mega project governance will align with Mission and place-based governance in the delivery of the infrastructure strategy, alongside its Treasury Minute response.
HM Treasury
16
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked the Treasury how it will ensure that the governance of the infrastructure strategy and project pipeline will align with the governance of the five missions. It told us that the infrastructure strategy sets out how each project will support delivery of the missions and that for mega projects …
Government response. The Treasury wrote to the Committee alongside the report to explain how major and mega project governance will align with Mission and place-based governance in the delivery of the infrastructure strategy.
HM Treasury
17
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked the Treasury how it will ensure that projects, which are related to each other or are in the same area but sit within different departments, do complement each other and provide value for money. It told us that governance needs to be set up which has all the …
Government response. The government agrees to write to the Committee with explanations and worked examples for how major and mega project governance will align with Mission and place-based governance in the delivery of the infrastructure strategy, alongside its Treasury Minute response.
HM Treasury
18
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked about how changes to the Green Book will ensure that projects are effective place-based interventions. The Treasury outlined that the key objective of the place-based business case is to bring together all the different projects that will make a substantial difference to a particular place, and where these …
Government response. The government agrees to write to the Committee with explanations and worked examples for how major and mega project governance will align with Mission and place-based governance in the delivery of the infrastructure strategy, alongside its Treasury Minute response.
HM Treasury
19
Recommendation
44th Report - Governance and decision-m…
Accepted
On the 31 March 2024, the Government Major Projects Portfolio (GMPP) included 227 projects at a combined whole-life cost of £834 billion. NISTA needs to gain assurance about progress with major projects as this helps it to challenge projects to take corrective action and gives sponsors confidence in how they …
Government response. NISTA will review and consult on the assurance framework holistically, and the Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to standards compliance, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have …
HM Treasury
20
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked NISTA how the gateway and business case process will be strengthened to give better assurance on project affordability and value for money. NISTA told us there is now a distinction between mega projects and major projects with new governance arrangements being put in place for mega projects.39 The …
Government response. The Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to upholding standards, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
HM Treasury
21
Recommendation
44th Report - Governance and decision-m…
Accepted
We noted that the concept of mega projects could take away from the proper supervision of major projects and asked how NISTA will have the bandwidth to be able to keep across all these major projects. NISTA told us that the GMPP projects are tiered and prioritised, with the prioritisation …
Government response. The government agrees to set out what it and NISTA will be doing to improve governance and assurance of all major projects in the future, particularly at a Departmental level, and will review and consult on the assurance framework holistically.
HM Treasury
22
Recommendation
44th Report - Governance and decision-m…
Accepted
We noted the importance of governance culture and asked how NISTA will address recurring themes around poor governance and decision- making. NISTA highlighted the importance of reporting and assurance to make the right decisions at the right time. NISTA told us it has been working on improving and growing the …
Government response. The Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to upholding standards, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
HM Treasury
23
Recommendation
44th Report - Governance and decision-m…
Accepted
NISTA is combining strategy and delivery of infrastructure and will be responsible for overseeing the implementation of the 10-year infrastructure strategy, supported by a project pipeline, with industry, regulators and departments.44 NISTA told us that merging the Infrastructure and Projects Authority (IPA) and National Infrastructure Commission (NIC) into NISTA and …
Government response. The Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to upholding standards, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
HM Treasury
24
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked NISTA how it was going to ensure it has the necessary resources and capacity to deliver its scope. NISTA told us it is confident it can resource the six objectives through its staff of over 200, and also has access to the 18,000 project delivery professionals across government.46 …
Government response. The Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to upholding standards, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
HM Treasury
25
Recommendation
44th Report - Governance and decision-m…
Accepted
NISTA’s remit covers service transformation and so we asked NISTA about its role with transformation projects. NISTA told us it has an experienced team in transformation and digital projects and said that if a project meets the requirements to be part of the GMPP it will get the relevant support.48
Government response. The government agrees and plans to outline milestones for NISTA's strategic objectives by Summer 2026, including resource allocation and focus on priority areas like digital and transformation projects.
HM Treasury
26
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked how the IPA’s previous data collection could continue to be used across projects to aid costing and identify effective early warning indicators for project delivery. NISTA told us its intention is to continue to publish updates and collect quarterly data on project performance and acknowledged that there was …
Government response. The government agrees and states NISTA has made progress connecting individual systems and bringing performance data together, with plans to produce project-level insights to better target assurance and intervention.
HM Treasury
27
Recommendation
44th Report - Governance and decision-m…
Accepted
The infrastructure strategy sets out government’s intention to provide long-term stability needed to attract investment, boost supply chains and jobs, and take a joined-up view to improve planning and delivery across infrastructure.50 We noted that the infrastructure strategy and pipeline will provide investor certainty and less pressure on suppliers, by …
Government response. The government agrees that NISTA should outline milestones for achieving its strategic objectives, including how it will allocate its resources, with a target implementation date of Summer 2026.
HM Treasury
28
Recommendation
44th Report - Governance and decision-m…
Accepted
NISTA told us that the aim of the strategy is to improve project delivery by bringing government thinking into what it is going to do and fund over a 10-year period. NISTA said previous strategies were over a shorter five-year period, which was not long enough to improve project delivery. …
Government response. The government agrees that NISTA should outline milestones for achieving its strategic objectives, including how it will allocate its resources, with a target implementation date of Summer 2026.
HM Treasury
29
Recommendation
44th Report - Governance and decision-m…
Accepted
We asked NISTA how it will ensure it has sufficient independence to fulfil its function to develop, deliver and challenge the 10-year infrastructure strategy, as part of the Treasury. NISTA told us that moving the NIC’s independent strategic advisory role inside government is more powerful because now the advice will …
Government response. NISTA will outline milestones for achieving its strategic objectives, including resource allocation to deliver the objectives, ensuring a focus on priority areas such as digital and transformation projects by Summer 2026.
HM Treasury
30
Recommendation
44th Report - Governance and decision-m…
Accepted
We noted that we had previously heard that projects on the GMPP would have their summary business cases published following final approval and evaluations.56 We asked what difference the publications of these could make to project governance. The Treasury told us that it set an expectation that all business cases …
Government response. NISTA will outline milestones for achieving its strategic objectives, including resource allocation to deliver the objectives, ensuring a focus on priority areas such as digital and transformation projects by Summer 2026.
HM Treasury