Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Accepted
Mega-projects possess unique characteristics making them inherently more challenging to deliver successfully.
Recommendation
Mega-projects display several characteristics which, when taken together, make them more difficult to deliver than major projects. They often have the potential to be transformational to the economy or society and are scentral to the government’s efforts to achieve its priorities. They may involve high levels of innovation or be the first of their type. The benefits of these projects can affect many parts of society, the economy and the environment; therefore, they cut across the interests of multiple departments and agencies. The environment in which mega-projects are delivered is often highly complex and challenging–primary legislation may be required, they may have multiple stakeholders, be delivered over multiple electoral and economic cycles, and involve extensive supply chains. Also, they often have a combination of high cost, risk and uncertainty, so that cost increases can dominate the financial position of a department. Finally, mega-projects can require substantial time for value and benefits to materialise.23
Government Response Summary
The Treasury will write to the Committee by September 2026 with an update on the effectiveness of the revised approach to governance of mega-projects, following the publication of the OVFM study in June 2025.
Government Response
Accepted
HM Government
Accepted
1. PAC conclusion: It is welcome that the Treasury is implementing stronger governance, and taking more responsibility and accountability for planning and delivering mega projects. 1. PAC recommendation: The Treasury should write to the Committee in 12 months with an update on the effectiveness of the revised approach to governance of mega- projects. 8 1 1 The government agrees with the Committee’s recommendation. Target implementation date: September 2026 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.