Recommendation 3

We are concerned that the 17 departmental groups had to write off close to £7 billion in total during 2024–25 for spending that did not achieve intended objectives. In addition to writing off £6.6 billion during 2024–25, the 17 departmental groups also made special payments outside their normal activities that totalled over £293 million. It is possible some of this expenditure may have been in the public interest, however it may also indicate where bodies did not exercise proper control or oversight on spending. We particularly consider losses incurred from cancelling projects after large sums have already been invested to be very poor value for money. recommendation HM Treasury should analyse the root causes of recent large reported losses, to identify what lessons can be learned and avoid such wasted funds in future investment decisions, and report back to the Committee by the end of the year.