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 …
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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 ‘mega’. This means a number of complex, strategically important projects, such as the Lower Thames Crossing and the Oxford-Cambridge arc, do not meet this definition. We were told that Euston station’s bespoke governance arrangements and many stakeholders mean it is an example of a project which could 3 become a mega project. The criteria exclude projects that are deemed to be repeatable and scalable, such as new hospitals, despite previous failures being experienced by these sorts of projects. Similarly, technically complex and innovative projects, such as digital transformation and artificial intelligence (AI), also do not fit the Treasury and OVFM definition of a mega project, despite government’s clear focus on these to deliver its ambitions for public service reform. recommendation Alongside its Treasury Minute response, the Treasury should write to us 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 billion cost threshold is not met.
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Government response AI summary
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.
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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 …
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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 of society and the economy. We were told that the Government intends to use the boards overseeing delivery of the government’s five missions to identify the links between projects where they collectively contribute to a mission. Government also intends to use the infrastructure strategy and pipeline to drive more “place-based” governance and co-ordination of projects which are dependent on each other to deliver outcomes in a specific area. These are in addition to the new arrangements being put in place for mega projects. However, we were unconvinced by witnesses’ explanation of how these separate yet overlapping structures would work in practice, raising the prospect of duplication of work and confusion in delivery without the right skills involved in decision-making recommendation Alongside its Treasury Minute response, the Treasury should write to the Committee with explanations–with worked examples–for how it will ensure major and mega project governance will align with Mission and place-based governance in the delivery of the infrastructure strategy.
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Government response AI summary
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.
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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 …
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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 Projects Portfolio (GMPP) which also need appropriate attention and scrutiny. NISTA currently divides projects on the 4 GMPP into tiers and decides whether to allocate resources to overseeing a project depending on the tier. However, its focus is likely to be on some of the larger projects, including the mega-projects, and overseeing delivery of the infrastructure strategy. Departmental oversight boards also need to have the right skills and capability to properly exercise their oversight role and lead major projects successfully. To address poor governance and decision-making culture, NISTA has been working on improving and growing the project delivery function and ensuring standards and training are consistent. It is not yet clear to us how it will reform governance of all projects on the GMPP, and how it will gain assurance about progress with those projects. recommendation In its Treasury Minute response, the Treasury should 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—to ensure oversight boards have the relevant skills mix, including what system-wide interventions it is planning to make.
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Government response AI summary
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 professionals and senior specialists.
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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 …
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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 staff, though it stated it can also draw on around 18,000 project professionals across government, and the Treasury told us that it envisages some efficiency in it being brought into the Treasury. NISTA is also responsible for improving the collection and use of data to drive government project delivery, and acknowledges there is more work to do in standardising and using the data provided by projects. Bringing NISTA fully into the Treasury requires a fundamental change in culture, thinking, and the way Government delivers mega projects as they will now have a direct stake in the success or failure of these projects. recommendation a. NISTA should outline milestones for achieving its strategic objectives, including how it will allocate its resources to deliver its objectives, and ensure it retains a focus on priority areas such as digital and transformation projects. b. NISTA should make better use of data on the performance of major projects to inform its assurance work. 5
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Government response AI summary
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 and AI.
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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 …
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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 situated inside government because the advice it received from the independent National Infrastructure Commission (NIC) was not always aligned with government policy. NISTA told us that it is retaining the NIC’s advisory council to ensure there is a strong voice from industry experts to influence government strategy. However, there is a risk that bringing the NIC’s strategic role into government could leave an absence of independent scrutiny over the effectiveness of the Treasury and NISTA’s delivery of the infrastructure strategy. recommendation In its Treasury Minute Response, the Treasury and NISTA should set out how they intend to report annually on progress against delivery of its strategy, as well as what arrangements it will make for this to be independently assured. 6 1 Changes to strategic governance of projects Introduction
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Government response AI summary
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 be updated every six months. …
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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
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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
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Government response AI summary
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.
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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 …
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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 time of our session, government approved an overall funding envelope for a mega-project’s whole-life cost, and then issued shorter-term commitments for a mega-project’s annual funding profile, often for a spending review period. Whole-life costs of large and complex projects can be significant and span years, even decades. However, annual budgets can be changed if a sponsor department needs to reprofile their spend.12
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Government response AI summary
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.
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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 …
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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 stage would be more substantial than it is currently, and we noted this could take months or even years.13 It also told us that there will be a staged approvals process as recommended by the OVFM, where funding will only be provided from the Treasury to get to the next stage of approval once the mega-projects decision panel is satisfied that the project is able to proceed.14 The Treasury told us that a “go slow to go fast” approach would encourage both faster and more reliable delivery of projects.15
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Government response AI summary
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.
Read full response →
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 …
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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 C&AG’s Report, paras 3.8-3.9, 3.11-3.12 11 GMP0006 12 C&AG’s Report, paras 2.4, 2.10 13 Qq 5-6 14 Q 12 15 Q 13 16 Q 4 9 Delivery Plans will be laid as Command Papers in Parliament at the start of the mega-project and at key milestones, including when ministers make material changes to mega-projects, such as to their scope or objectives.17
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Government response AI summary
The government agrees with the Committee’s recommendation and has implemented it.
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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 …
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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 that defines the stages it will go through. The OVFM and the Treasury also emphasised the importance of flexibility and that cost and schedule estimates should be very broad ranges in the early stages.18 NISTA told us that when there is uncertainty, projects will follow the NISTA guidance on cost estimating, which has a broad range at the start, then comes down as maturity develops.19 The Treasury told us that when the mega-project is ready it will enter a construction phase, which would have its own budget with flexibility within it where things are not expected to change, as a result of the work done during the feasibility stage. The OVFM added that for mega-projects categorised by their definition, the Prime Minister, Chancellor and the relevant Secretary of State will be responsible for making the final investment decision.20
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Government response AI summary
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.
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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 …
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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 accountability for the mega-project’s success.21 We also asked how risks and uncertainties at the beginning of a project would be better understood. NISTA told us that the mega projects decision panel that the OVFM recommended is being created. It said that the Permanent Secretary of the Cabinet Office, a director general within the Treasury and the CEO of NISTA will sit on this panel and advise the Chancellor, Chief Secretary and Prime Minister on the approval decision points. At these points a significant amount of assurance would be done, identifying the risks.22 17 HM Treasury, Value for Money (VfM) study on the governance and budgeting arrangements for mega projects, 19 June 2025 18 Q 11 19 Q 12 20 Q 5 21 Q 7 22 Q 12 10 Defining a mega project
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Government response AI summary
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.
Read full response →
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 …
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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 the first of their type. The benefits of these projects can affect many parts of society, the economy and the environment; therefore, they cut across the interests of multiple departments and agencies. The environment in which mega-projects are delivered is often highly complex and challenging–primary legislation may be required, they may have multiple stakeholders, be delivered over multiple electoral and economic cycles, and involve extensive supply chains. Also, they often have a combination of high cost, risk and uncertainty, so that cost increases can dominate the financial position of a department. Finally, mega-projects can require substantial time for value and benefits to materialise.23
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Government response AI summary
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.
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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, …
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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, you either do all the project or none of it.24 The Treasury told us that there are currently three projects in the government’s portfolio defined as ‘mega’: High Speed 2, Sizewell C and Dreadnought.25 The OVFM added that the Department for Transport is currently looking at delivery models and governance for Euston as a large and complicated project in its own right. NISTA stated that due to its size, complexity, and separate governance arrangements to HS2, Euston has the potential to become a mega-project.26
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Government response AI summary
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 billion cost threshold is not …
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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 …
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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 examined.28 Similarly, technically complex and innovative projects, such 23 C&AG’s Report, paras 1.1-1.7 24 Q 72 25 Q 7 26 Q 46 27 Q 72 28 Q 7; Committee of Public Accounts, The New Hospitals Programme, First Report of Session 2023–24, HC 77, 9 November 2023 11 as digital transformation and artificial intelligence (AI), also do not fit the OVFM and Treasury’s definition of a mega project, despite government’s clear focus on these to deliver its ambitions for public service reform.29 Developing a coherent strategic approach
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Government response AI summary
The Treasury has written to the Committee setting out the rationale for the £10 billion cost criterion for mega projects.
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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 …
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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 decision-making process and their governance structures. The complexity of cross-cutting delivery can lead to complicated and confused governance structures, resulting in ineffective decision-making, poor engagement and a lack of joined- up thinking, responsiveness and the co-ordination required to deliver value. However, well designed governance can provide the necessary co-ordination, clarity and effective decision making that complex and cross-cutting projects need.30
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Government response AI summary
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.
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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 …
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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 there will be bespoke governance arrangements. It cited the Oxford-Cambridge arc as an example of a project with specific governance arrangements for a mega-project, which is separate from the growth mission board which covers governments efforts to drive up prosperity and living standards across the UK. The Treasury outlined how for mega projects it would like to replicate the approach to the Olympics where there was a particular body responsible for delivery.31
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Government response AI summary
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.
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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 …
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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 people round the table and that projects such as the Oxford-Cambridge arc are not just seen as a transport project. The Treasury highlighted that mission boards are designed to look at cross-cutting government issues.32 We noted that these arrangements sounded quite ad hoc and the Treasury told us that 29 Qq 59, 62, 69 30 C&AG’s Report, paras 2.6-2.7, 2.9 31 Q 42; Question for Treasury, Written questions and answers UK Parliament, UIN 20927, 18 December 2024 32 Q 43 12 the five missions “have very clear governance structures”.33 We asked how this works in practice when there are different departments and agencies working on related projects. It told us that the mission boards meet regularly and talk these interrelationships through, and that missions cover the vast majority of what the government is trying to achieve.34
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Government response AI summary
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.
Read full 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 …
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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 projects are greater than the sum of their parts. It said that this approach would not necessarily apply to mega projects but would be important for a number of individual projects or programmes to bring out the benefits that would perhaps not be seen on an individual basis.35 33 Q 44 34 Q 45 35 Q 37 13 2 NISTA’s new role Ensuring that HM Treasury and NISTA gains assurance about progress with all major projects
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Government response AI summary
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.
Read full 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 …
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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 are progressing. Those involved in governance need to think through what internal and external assurance they need, when they will need it, what skills and experience this will require, and how the various types of assurance fit together in an integrated assurance plan. If assurance is designed badly, there is a risk that it becomes ongoing non- expert commentary which could cause delay and confuse accountability.36 We have repeatedly raised concerns over the Department for Transport (DfT) and HS2 Ltd having the skills and capability they need to lead the High Speed Two programme effectively and credibly.37 The Stewart Review found that HS2 Ltd and DfT as the Sponsor have been consistently underpowered in performing their roles. HS2 Ltd has lacked the capability to deal with the size and complexity of the project and DfT Sponsor team lacking the commercial and delivery experience as a client on major infrastructure projects.38
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Government response AI summary
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 the right experience and support.
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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 …
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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 new arrangements for mega projects involve decisions at each stage gate being made by the Prime Minister, Chancellor and 36 C&AG’s Report, paras 1, 4.9, 4.11 37 Committee of Public Accounts, HS2: Update following the Northern leg cancellation, Tenth Report of Session 2024–25, HC 357, 28 February 2025 38 James Stewart, Stewart Review: Major Transport Projects Governance and Assurance Review, 18 June 2025 39 Q 55 14 relevant Secretary of State, advised by a new decision panel involving the Treasury, NISTA and Cabinet Office officials, itself informed by independent assurance.40
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Government response AI summary
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.
Read full response →
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 …
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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 reviewed quarterly. NISTA said it changes and moves resources around, depending on the needs of the projects. NISTA expects an advantage of its new role will be the ability to improve the overall project delivery system and said that that whilst a lot of its focus may be on the larger projects, quite often the broader challenges, and opportunities for efficiencies relate to how individual projects fit into broader programmes such as the school or hospital building programmes.41
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Government response AI summary
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.
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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 …
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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 project delivery function and ensuring standards and training are consistent.42 NISTA also told us it has put 1,376 people through the Major Projects Leadership Academy (MPLA), nearly 3,000 people in the project leadership programme, and 135 directors general through Orchestrating Major Projects training. NISTA highlighted that 81% of Senior Responsible Owners across the GMPP have completed or are part way through the MPLA training.43 NISTA’s stretching range of responsibilities
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Government response AI summary
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.
Read full response →
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 …
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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 making it part of the Treasury means NISTA will be greater than the sum of its parts with strategy, delivery, decision making and the money side all in one place. NISTA told us it has a much broader remit in terms of sectors compared to the NIC and IPA. It has six initial objectives, which include 40 Q 12 41 Q 58 42 Qq 16-17 43 Q 18 44 C&AG Report, para 3 15 overcoming barriers to delivery, enhancing and simplifying assurance, being head of function and profession for project delivery, publishing the pipeline, and spatial planning.45
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Government response AI summary
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.
Read full response →
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 …
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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 The Treasury told us that including NISTA’s 200 staff is a substantial increase to the Treasury’s 2,000 staff, and that it envisages some efficiency in bringing organisations together. As a result, the Treasury said it was confident it had the resources needed for NISTA “to do a really great job.” 47
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Government response AI summary
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.
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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
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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
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Government response AI summary
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.
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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 …
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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 more work to do in terms of standardisation of the data across projects and Departments. NISTA told us that it had recently published a data standard but this was a minimum viable product, and it needed to look further into project controls to get a better set of indicators. NISTA said it does not have the ability to look at the monthly performance of projects or as projects are evolving.49 Accountability for the delivery of the infrastructure strategy and pipeline
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Government response AI summary
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.
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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 …
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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 ensuring there are not lots of projects going on at the same time which require the same contractors. We reported on the need for the infrastructure strategy 45 Q 47 46 Q 49 47 Q 50 48 Qq 59-60 49 Qq 64-65 50 HM Treasury, UK Infrastructure: A 10 Year Strategy, CP 1344, June 2025 16 and pipeline in our recent report on private finance for infrastructure, highlighting how a lack of a credible pipeline in previous years has made it challenging for organisations and investors in the sector to plan for the longer term.51
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Government response AI summary
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.
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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. …
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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. NISTA said the strategy is the first step in enabling a clearer picture, where everything is far more visible and organisations and people can be held to account much more clearly.52 In written evidence submitted to us, the Institution of Civil Engineers (ICE) recommended that independent oversight of government delivery should be part of NISTA’s governance structure, so that it has a clear role to proactively challenge the government and not shy away from difficult conversations. ICE also recommends that NISTA holds government accountable for developing and committing to a prioritised, stable pipeline of investible projects aligned with society’s needs.53
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Government response AI summary
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.
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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 …
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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 be aligned with government’s intentions and will directly contribute to decision-making.54 We asked what options and actions were open to NISTA if NISTA concluded it did not have sufficient independence to fulfil its role. NISTA told us it has retained the expert advisory council from the NIC, with previous Commissioners transferring to NISTA. NISTA told us how the advisory council will provide advice directly to the CEO of NISTA and the Chief Secretary to ensure there is a strong voice from industry experts.55
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Government response AI summary
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.
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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 …
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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 are published four months after they have received their final sign-off. It said that publication is an important part of improving 51 Committee of Public Accounts, Government’s use of private finance for infrastructure, Thirty-Ninth Report of Session 2024–25, HC 821, 11 July 2025 52 Q 25 53 GMP0006 54 Q 52 55 Q 53 56 Committee of Public Accounts, Lessons from major projects and programmes, Thirty-Ninth Report of Session 2019–21, HC 694, 29 January 2021 17 transparency, setting out the parameters and expectations on which a project is being delivered.57 NISTA highlighted that the publications demonstrated a level of accountability and visibility over what the intention is. It also said that the 10-year infrastructure strategy and the pipeline would become more relevant, noting that there would be annual NISTA updates on performance against the strategy.58 The OVFM told us that publishing a strategy and delivery plan will help to address planning requirements and address transparency to the public.59 57 Qq 66-67 58 Q 66 59 Q 4 18
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Government response AI summary
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.
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HM Treasury