Source · Select Committees · Public Accounts Committee
Recommendation 3
3
It is not clear to passengers and businesses when the Elizabeth line will open or...
Conclusion
It is not clear to passengers and businesses when the Elizabeth line will open or what services will be available. The Elizabeth line services will open in stages. Services have been running on the eastern and western ends of the line (under the brand name ‘TfL Rail’) since June 2017 and May 2018, respectively. Opening of the central section, known as stage 3, is expected in the first half of 2022. It will operate a shuttle service between Abbey Wood and Paddington. Commuters must change to other Elizabeth line services to continue their journeys on the eastern and western ends. Full east-west services, without an interchange, are not expected until December 2022 or May 2023 as these need to be aligned with National Rail timetable changes which occur in May and December each year. However increased services, such as from the eastern ends through the central section and terminating at Paddington, may open by September 2022. Crossrail Ltd has not yet publicly announced an exact opening date. However, with the opening of central section potentially as soon as February 2022, and the staged opening of different routes, commuters and businesses will need increased certainty to better plan for Crossrail opening. Recommendation: Crossrail Ltd, TfL and the Department should develop a clear communication strategy to the public to explain when and what Elizabeth line services will be open.
Government Response
Acknowledged
HM Government
Acknowledged
agree with the Committee’s conclusion. The department recognises the importance of managing supplier performance including the apportionment of financial and programme risk. CAAS (Cost Assurance & Analysis Service) Approvals Team help define specific estimating and scheduling evidence requirements to underpin business cases in accordance with HMT Aqua Book Guidance2. This is delivered throughout the lifecycle of programmes continually developing and improving the accuracy of estimates as the project becomes more mature, and its risks fully identified. 3.3 The department accepts that supplier underperformance has been a factor on some programmes, but the use of Firm Price contracts, Liquidated Damages, Single Source regulation reform and other measures have been effective in limiting exposure to cost increases. These measures have resulted in the financial liability for cost over-runs being borne by suppliers. Industry has posted significant losses on contracts (for example the development and production contract for A400M aircraft) as a result of work delivered by MOD programme teams to best understand where financial risk and liabilities rightfully sits between the department and supplier. The practice of government funding the development costs of new capability is well-established across the world. Demanding that most of the upfront development costs are funded by industry before a commitment is made to buy equipment would reduce investment in cutting-edge capability, damage UK industry competitiveness, and runs counter to the policy set out in the DSIS. 3.4 In addition to delivering military capability to the Armed Forces, Equipment Plan investment brings economic benefit, supporting over 200 thousand UK jobs and generating intellectual property (IP) that can be exploited by UK industry in exports. The generation of HMT Accounting Officers Assessment Guidance (2021) page 8 cutting-edge IP naturally leads to technically challenging and higher risk programmes as the Department strives to maintain operational advantage, while industry also seeks to offer market-leading equipment both for domestic export use. 3.5 The Department will write to the Committee by the end of May 2022 setting out evidence of how it holds its suppliers to account and fairly and responsibly apportions risk and reward across its contracts.