Recommendation 11

We asked the Treasury and Cabinet Office what is being done to minimise optimism bias, particularly how they can ensure efficiency plans are subject to adequate challenge and properly evidenced.26 The Cabinet Office told us that government functions will help scrutinise efficiency plans, with experienced professionals able to assess project progress and provide challenge. Within the Major Projects Review Group, for example, the Treasury and Cabinet Office work weekly alongside the Infrastructure and Projects Authority (IPA) and functional experts to assess projects, which can help identify and minimise optimism bias as the business case develops.27 More generally, it told us the culture of accountability 19 Q 60 20 Q 61 21 Qq. 62–64 22 Q 65 23 Q65; C&AG’s Report, para 12 24 C&AG’s Report, para 18 25 Committee of Public Accounts, Tenth report of Session 2019–21, Defence capability and Equipment Plan, HC 247, conclusion 6; C&AG’s report, para 25, Figure 5. 26 Q 66 27 Q 66 Efficiency in government 11 within government plays an important role in challenging optimism bias as it incentivises programme leaders to be honest about whether or not they think they can deliver with the resources planned. The Cabinet Office said continuing to test plans for their realism following their implementation is also important, as is learning from past experience.28