Source · Select Committees · Public Accounts Committee

Recommendation 25

25

We noted that the number of projects rated as red has increased from four to...

Conclusion
We noted that the number of projects rated as red has increased from four to eleven in the IPA’s most recent annual report and questioned the IPA on how we should measure its success going forward.49 The IPA stated that one would expect to see more issues being raised in a more robust assurance regime, and if a programme was badly developed in the past it is not necessarily possible for the assurance regime to bring it fully back on track. The IPA stated that its performance should be measured more systemically and that there will be a number of elements needed to improve overall system delivery.50
Government Response Acknowledged
HM Government Acknowledged
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.