Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
New mega-project governance involves top-level political decisions informed by official panels.
Recommendation
We asked NISTA how the gateway and business case process will be strengthened to give better assurance on project affordability and value for money. NISTA told us there is now a distinction between mega projects and major projects with new governance arrangements being put in place for mega projects.39 The new arrangements for mega projects involve decisions at each stage gate being made by the Prime Minister, Chancellor and 36 C&AG’s Report, paras 1, 4.9, 4.11 37 Committee of Public Accounts, HS2: Update following the Northern leg cancellation, Tenth Report of Session 2024–25, HC 357, 28 February 2025 38 James Stewart, Stewart Review: Major Transport Projects Governance and Assurance Review, 18 June 2025 39 Q 55 14 relevant Secretary of State, advised by a new decision panel involving the Treasury, NISTA and Cabinet Office officials, itself informed by independent assurance.40
Government Response Summary
The Treasury will strengthen departmental skills by tying higher Delegated Authority Limits to upholding standards, requiring accredited project professionals and senior specialists on project boards, and ensuring SROs have the right experience and support.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: NISTA still has work to do to ensure that it gains assurance about progress with all major projects and that they are governed and assured effectively. 4. PAC recommendation: In its Treasury Minute response, the Treasury should set out what it and NISTA will be doing to improve governance and assurance of all major projects in the future - particularly at a Departmental level - to ensure oversight boards have the relevant skills mix, including what system-wide interventions it is planning to make. 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 9 4.2 NISTA currently arranges and manages independent assurance reviews that provide recommendations on the readiness of individual projects to progress to the next stage. These also help identify thematic or common issues facing major projects and support the development of system level interventions or the development of guidance – for example the recent publication Improving Governance (for their website members) sets out the common challenges facing major projects and offers practical advice to address these, including strengthening oversight boards. NISTA is also refining its data management processes to make this analysis more systematic in future. Following recent developments, including publication of the Teal Book, 10 Year Infrastructure Strategy, OVFM and Stewart recommendations, NISTA will be reviewing and consulting on the assurance framework holistically to address these. Further information on next steps will be available once this review is complete to address these. Further information on next steps will be available once this review is complete. 4.3 The Treasury will strengthen the capability and skills of departments to govern and assure major projects by tying higher Delegated Authority Limits to departments upholding and evidencing compliance with standards. Working through the finance, commercial, digital and project delivery functions, the Treasury will require departments and ALBs to ensure that project and portfolio boards include accredited project professionals and senior specialists, and that SROs have the right experience and support.