Source · Select Committees · Public Accounts Committee
Recommendation 3
3
We welcome the IPA’s plans to strengthen how it assures government’s major projects and the...
Conclusion
We welcome the IPA’s plans to strengthen how it assures government’s major projects and the recent clarification of it roles and responsibilities, but it remains to be seen whether the IPA will be able to effectively ensure those delivering projects make the level of improvement required. In the past, we have raised concerns that the IPA is not sufficiently independent of government to confidently challenge it, being both a champion of government project delivery as well as being responsible for assuring it. The IPA recognises that while its gateway review process for assuring projects at key decision points is good, it has not always been applied with the rigour needed. Programmes with significant issues have proceeded through Gateways even when they were rated as amber/red. It is now resetting its assurance of the GMPP, to ensure that departments address issues identified at gateway reviews before a programme can proceed, and points to having already made meaningful impact on the Lower Thames Crossing programme. The IPA is working to have a systemic view of what impact it has on programme performance, though it also told us that it was implementing a system to do this when we spoke to them in 2016. We note that government has reinforced IPA’s mandate, alongside clarifying what the responsibilities of departments are in acting on the IPA’s recommendations. Recommendation: Within six months IPA must write to us setting out the changes it has made to its assurance of major programmes in its reset, and how this will improve project delivery. It should also set out what action it took in relation to those projects on the GMPP currently rated as red/red-amber, and what the result has been. The Cabinet Office and HM Treasury should also write to us detailing the actions taken to ensure that Departments act on the IPA’s recommendations.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2021 3.2 In 2020, the IPA worked across government to ensure that every project that meets the eligibility criteria is included in the GMPP, which has led to an increase in the size of the portfolio. The IPA encourages departments to notify it of prospective major projects as soon as possible in the policy formulation process. In doing so, the IPA has improved its ability to provide the right support and scrutiny of projects and embed deliverability principles early, including through the recently published Principles for Project Success and the Project Initiation Routemap. 3.3 The IPA recently separated its support and assurance functions to ensure evaluations of projects are consistently robust and impartial. From 2021, the GMPP RAG rating system will be simplified from five categories (Red, Red/Amber, Amber, Amber/Green, Green) to three (Red, Amber and Green). The focus of IPA assessment will shift from ‘overall delivery confidence’ to the singular question of whether a project is ready to progress through the next HM Treasury Approval Point. The IPA’s support will now be required for advancement, rather than being merely advisory. Projects ranked red will not be permitted to proceed until issues are managed to an acceptable level of risk. Projects ranked amber will proceed with conditions, including a duty to report back at an agreed date. Projects ranked green will proceed without conditions, subject to usual quarterly data returns and monitoring. 3.4 As of September 2019, 43 projects were assigned Red or Amber/Red. The reasons for this varied by project. The IPA will write to the Committee within six months to update it on the actions taken and progress made on these projects.