Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Deferred
Treasury assumes greater supervisory role for mega-projects with NISTA panel advising approval.
Conclusion
We asked the Treasury to outline what its new supervisory role is going to be for mega-projects. The Treasury explained that it will have a greater role in the governance of mega-projects by requesting a seat at the board and, in its role as financial shareholder, will have far greater accountability for the mega-project’s success.21 We also asked how risks and uncertainties at the beginning of a project would be better understood. NISTA told us that the mega projects decision panel that the OVFM recommended is being created. It said that the Permanent Secretary of the Cabinet Office, a director general within the Treasury and the CEO of NISTA will sit on this panel and advise the Chancellor, Chief Secretary and Prime Minister on the approval decision points. At these points a significant amount of assurance would be done, identifying the risks.22 17 HM Treasury, Value for Money (VfM) study on the governance and budgeting arrangements for mega projects, 19 June 2025 18 Q 11 19 Q 12 20 Q 5 21 Q 7 22 Q 12 10 Defining a mega project
Government Response Summary
The Treasury will write to the Committee with an update on the effectiveness of the new bespoke approach to funding and governance as set out in the Office for Value for Money (OVFM) study.
Government Response
Deferred
HM Government
Deferred
1.2 The Office for Value for Money (OVFM) published its study on the governance and budgeting arrangements for mega projects in June 2025. This set out a new bespoke approach to funding and governance that will be implemented for current and future mega projects. The Treasury will write to the Committee with an update on the effectiveness of this revised approach.