Source · National Audit Office

Lessons learned: Governance and decision-making on mega-projects

Published: 14 Mar 2025 Recommendations: 5 Type: Value for Money NAO confirmed: 5

NAO report detail with recommendations, government responses, and any Public Accounts Committee follow-up.

Recommendations

5 items
5 accepted 4 implemented 1 in progress
Rec Recommendation Addressee Acceptance Implementation
1
HM Treasury and NISTA should develop how they categorise major projects according to their risk and strategic importance. In particular, they should define a category for ?mega-projects? that may require a different approach to governance and specify the criteria for giving a project ?mega-project? status
Ref Page 6, recommendations, a · Implemented Q3 2025-26
HM Treasury; National Infrastructure and Service Transformation Authority Accepted Implemented ✓ NAO
2
HM Treasury and NISTA should consider using alternative governance approaches for the projects it determines are mega-projects to ensure those who have the authority to make decisions are accountable for the impact of those decisions on the project. This could include, for example, HM Treasury or NISTA having greater involvement in a mega-project during its development ? such as a formal position on a project board ? to provide it with executive authority and certainty, and to improve alignment between the funder and delivery organisation during the critical early stages of a mega-project.
Ref Page 6, recommendations, b · Implemented Q3 2025-26
HM Treasury; National Infrastructure and Service Transformation Authority Accepted Implemented ✓ NAO
3
Any alternative governance approach should also ensure that: ? roles and responsibilities are clear across those charged with governance and those involved with decision-making; this is particularly critical where decisions and accountabilities stretch across a system or set of organisations;
Ref Page 7, recommendation, c, bullet 1 · Implemented Q1 2026-27
HM Treasury; National Infrastructure and Service Transformation Authority Accepted In progress ✓ NAO
4
the roles and responsibilities of those who may not be directly involved in governance but are part of the broader government decision-making landscape, such as HM Treasury, cross-government or departmental programme boards, mission and leads, and NISTA, are clear and understood
Ref Page 7, recommendations, c, bullet 2 · Implemented Q3 2025-26
HM Treasury; National Infrastructure and Service Transformation Authority Accepted Implemented ✓ NAO
5
For mega-projects, HM Treasury and NISTA should strengthen the project gateway and business case approval processes to ensure that government has assurance about the affordability, value for money and feasibility of the project before it is given final approval to proceed. This might include only providing funding to take the project to the next stage of development and maturity. Each decision stage should provide governance bodies and funders with assurance that the project?s development should continue. NISTA and those charged with governance should advise government to stop a project if early work indicates that the project is too risky and/or costly, or that successful delivery of the benefits is too uncertain to proceed.
Ref Page 7, recommendations, d · Implemented Q3 2025-26
HM Treasury; National Infrastructure and Service Transformation Authority Accepted Implemented ✓ NAO