Source · Select Committees · Public Accounts Committee

Recommendation 29

29 Accepted

DHSC acknowledges "extremely disappointing" lack of records for past HIP scheme selection process.

Conclusion
We asked DHSC how this serious failure could have occurred and what it was doing about it. DHSC’s Second Permanent Secretary confirmed that there was no record from that time which was “extremely disappointing” and said she had improved record keeping in DHSC and hoped a similar omission would not occur now. She told us there were a lot of discussions about scheme selection for HIP. Her predecessor told her he was satisfied that the decisions were made on an appropriate basis. We asked whether interventions in respect of ministers’ or special advisors’ political priorities might have caused the evidence- based shortlist to change in a way that was not appropriate. The Second Permanent could only say that she was “pretty confident” that her predecessor would have been “pretty confident” in calling out such behaviour.66
Government Response Summary
The government accepts the implicit recommendation for improved record-keeping and transparency in major capital program selections, acknowledging a past omission. It commits to ensuring future practices allow for providing evidence on decision outcomes, while balancing this with the need to protect sensitive information.
Government Response Accepted
HM Government Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The department accepts that there was an omission in record keeping around the final selection of schemes that would be included in the Health Infrastructure Plan in 2019. However, the process was based on clear criteria and the department, NHSE, HM Treasury and No10 Downing Street agreed that the final list of schemes was the right one. 2.3 The government regularly sets out the selection process for major capital programmes before bids are invited and decisions are made. Selection criteria for schemes to take forward will vary but will consistently consider the strategic context, economic impact and risks, commercial factors, financial factors and deliverability; in line with HM Treasury’s Five Case Model as recommended by the Green Book. Scheme selection decisions in major capital programmes are inherently complex, requiring comparison between different criteria and consideration of their relative value. The department also considers the advice of NHSE when allocating funding for major capital programmes. 2.4 The department is committed to ensuring its practices, procedures, and advice result in rational decisions made through an appropriate process that take account of the right criteria. As a result, the department will be able to provide evidence on decision outcomes as needed, balanced against its responsibilities to protect certain types of information, such as commercially sensitive information.