Incomplete Public Project Cost-Benefit Analysis
Omission of significant costs (e.g., customer costs) from cost-benefit analyses for major public projects.
Strongest theme matches
Mixed across source types and ranked by classifier confidence plus text match strength.
Committee recommendation
95match
#14 - Department conducted minimal analysis of future loan management costs beyond March 2025
The Department has conducted minimal analysis of the costs of managing the loans over their lifetime, with no assessment of the factors that might increase costs or reduce income. It forecast that it would spend £17.3 million over the three years to March 2025, which we calculated would already represent 22% of its total expected income from interest...
Matched on
terms: analysi, cost, public
Committee recommendation
95match
#2 - Publish comprehensive evaluation of Skilled Worker visa route’s costs, benefits, and impact on skill shortages.
The Home Office has not had a full understanding of how immigration has helped to address skill shortages or the unintended consequences of the much higher than anticipated use of the Skilled Worker route. More people have used the Skilled Worker visa route than the Home Office anticipated in 2020. It forecast that it would issue 360,000 Skilled...
Matched on
terms: benefit, cost, public
Committee recommendation
95match
#24 - Department lacks comprehensive analysis comparing cost-effectiveness of incentives against direct teacher pay increases.
We asked the Department if it has assessed whether spending on initiatives such the Early Career Framework (£131 million budget in 2024–25) provides better outcomes than simply increasing teachers’ pay. The Department did not confirm if it had undertaken this analysis but instead told us more generally that teaching quality would need to be considered alongside teacher numbers.68...
Matched on
terms: analysi, benefit, cost, public
Committee recommendation
90match
#20 - Third Report - Delivering the Government’s infrastructure commitments through major projects
Projects are hindered by over-optimistic estimates of cost and time schedules, and overstatement of early benefits. Ministers are too keen to commit to specific cost and timescales early in the process, and project managers become tied to these estimates. The early estimates can then shape the rest of the project delivery, sometimes leading to reductions in outputs or...
Matched on
terms: benefit, cost, project, public
Committee recommendation
90match
#17 - Third Report - Delivering the Government’s infrastructure commitments through major projects
Benefits must be prioritised and reported. The IPA should report against benefits plans consistently in its annual reports from 2021–22. Consistent reporting of benefits should include a standardised financial measure, reported as trend data (showing the benefit agreed at the outset, alongside any agreed changes at specific dates, up to current forecasts) alongside a narrative of transformational benefits...
Matched on
terms: benefit, project, public
Committee recommendation
90match
#5 - Third Report - Delivering the Government’s infrastructure commitments through major projects
Previous infrastructure strategies have not led to coherent and co-ordinated infrastructure spending. A scattergun approach to infrastructure investment might result in expensive infrastructure that does not benefit a local area either because it is not supported by complementary services (for example new houses without transport links); or it is not nationally co-ordinated and directed to areas of greatest...
Matched on
terms: benefit, project, public
Committee recommendation
90match
#3 - Assess the full CCUS programme's affordability for taxpayers and consumers amid cost of living pressures
The Department and HM Treasury have yet to assess the full financial impact of the CCUS programme on taxpayers and consumers. The costs of the CCUS programme are significant: in November 2024 the government announced £21.7 billion of funding over 25 years to cover only the first five CCUS projects. There are three more projects that are still...
Matched on
terms: cost, project, public
Committee recommendation
86match
#18 - Ministry of Justice has not assessed additional costs incurred for urgent prison place delivery
We asked MoJ if it has assessed the costs of needing to deliver prison places so urgently, such as paying contractors more to take on a higher level of risk.62 MoJ said it had not and indicated this could be difficult to disaggregate. It conceded that needing to do things quickly will likely cost more, but it also...
Matched on
terms: cost, project, public
Committee recommendation
86match
#10 - Department lacks robust value-for-money analysis for teacher recruitment initiatives and spending
We asked the Department how confident it was that the initiatives funded through the £700 million represented the best value for money. It told us it had allocated the funding in a way to make what is described as “as much progress as possible”.23 We challenged the Department on, for example, whether the £26 million annual spend relating...
Matched on
terms: analysi, cost, public
Committee recommendation
81match
#3 - Fourth Report - Effectiveness of UK aid: potential impact of FCO/DFID merger
In the light of developments since the publication of this Committee’s interim findings on the effectiveness of UK aid, we restate the recommendation we made in that report about significant reorganisations of UK aid: that the Government should present a statement to Parliament setting out an evidence-led rationale for any change; quantifying expected costs and how intended benefits...
Matched on
terms: benefit, cost, public
Committee recommendation
81match
#22 - Thirty-fourth Report - Covid-19: Support for jobs
The condensed timetable for introducing the schemes meant that a lot of the standard documentation that would accompany such a major policy initiative—business cases, options appraisal and detailed cost-benefit analysis—wasn’t undertaken back in the spring.57 HM Treasury asserted that the potential economic costs and human cost of large-scale unemployment if the schemes had not been introduced meant that...
Matched on
terms: analysi, benefit, cost, public
Committee recommendation
81match
#2 - Set out changes to ensure Home Office investment decisions use comprehensive information and transparent consultation
In its haste to purchase the Northeye site, the Home Office ignored opportunities to properly understand the risks and costs of developing it, leading to poor value for money for the taxpayer. The Home Office asserts it did a “fair amount” of due diligence before acquiring the Northeye 4 site, but the NAO highlighted significant shortcomings. The Home...
Matched on
terms: cost, incomplete, project, public
Committee recommendation
78match
#13 - Home Office underestimated large accommodation site set-up costs due to optimism bias and inadequate expertise.
We were concerned by the Home Office’s assessment of the set-up costs to convert the two former RAF bases to accommodation. At the outset, the Home Office estimated that such costs would be £5 million for each site, but the costs increased to £49 million at Wethersfield and £27 million so far at Scampton. We asked the Home...
Matched on
terms: cost, public
Committee recommendation
78match
#10 - Home Office unable to explain significant additional escort training costs for Rwanda scheme.
The Home Office has estimated that it would cost £11,000 to fly each relocated individual to Rwanda. Witnesses told us that this was an internal estimate and actual costs would depend on a number of variables. The Home Office will also need to pay additional costs to escort people to Rwanda but did not provide an estimate of...
Matched on
terms: cost, public
Committee recommendation
78match
#22 - Home Office failed to adequately assess acquisition risks and costs for Northeye site.
When the Chief Secretary to the Treasury approved the acquisition of the Northeye site on 25 March 2023, he noted that the value-for-money case was marginal and based on assumptions that were highly uncertain.71 The cost of remediating the building of asbestos and removing contaminated ground estimated at £20 million did not feature in the Accounting Officer’s advice.72...
Matched on
terms: cost, public
Committee recommendation
77match
#14 - 4th Report - UK-EU relations a decade on
We welcome the UK re-joining the Erasmus+ scheme. To support transparency, we recommend that the Government set out the underlying data to support the UK’s decision to rejoin, a full cost- benefit analysis of long-term membership of Erasmus+, and its view on continued UK association as part of the 2028–2034 budgetary cycle. (Recommendation, Paragraph 39)
Matched on
terms: analysi, benefit, cost
Committee recommendation
77match
#33 - 6th Report - The Access to Work scheme
We asked the Department about cost-benefit analysis of the Access to Work scheme relative to other schemes including, if a robust case-controlled study was not possible, whether it had done any sort of modelling.63 We suggested, for example, that, if someone had been refused Access to Work support and was not able to work, the counter might be...
Matched on
terms: analysi, benefit, cost, public
Committee recommendation
77match
#7 - 6th Report - The Access to Work scheme
The Department has not done enough to generate evidence on the value for money of the scheme. The Department acknowledges that it does not know whether the scheme provides value for money. It undertook qualitative research some time ago—in 2009 and 2018—to gather the views of individuals and employers. This found that the scheme has a range of...
Matched on
terms: benefit, cost, public
Committee recommendation
77match
#49 - 1st Report - Investing in the UK economy
Based on analysis of comparator countries, the Government should set a more ambitious long-term goal for growing the financial capacity of the British Business Bank. As a priority, HM Treasury should publish a cost benefit analysis of quadrupling the funding for loan guarantee products offered by the British Business Bank, to determine the business case for expansion. (Recommendation,...
Matched on
terms: analysi, benefit, cost
Committee recommendation
77match
#14 - Uncertainty remains regarding precise consumer/taxpayer funding balance for the £22 billion CCUS programme
The Department told us it expects around three quarters of the allocation of financial support of almost £22 billion will be from levies on consumers (such as those using power generated by the Net Zero Teesside project).46 The remaining 25% will come from the Exchequer.47 However, the Department does not yet know the precise balance of funding between...
Matched on
terms: cost, project, public
Committee recommendation
77match
#7 - Publish formal assessment of remediation policies' impact on housebuilding targets and identify mitigation actions.
We are not convinced that MHCLG is taking the potential impact of its remediation plans on wider housebuilding targets seriously enough. The government has pledged to build 1.5 million homes during this Parliament. The construction sector is reporting workforce shortages. There is a risk that MHCLG’s approach to remediation could negatively impact the delivery of this target, and...
Matched on
terms: cost, project, public
Committee recommendation
77match
#23 - Treasury prioritises private finance for incentivised risk management and expert due diligence.
We asked the Treasury how it decides on which private finance model to use, and how it assesses the additional cost of private finance against the benefits of risk transfer. The Treasury told us that the benefit of private finance is that the private sector is incentivised to take on and manage risk. It explained that the private...
Matched on
terms: benefit, cost, project, public
Committee recommendation
74match
#4 - Set out methodology to estimate Criminal Justice System costs due to prison capacity pressures.
The prison capacity crisis has led to decisions and inefficiencies which represent poor value for money. Maintaining and making best use of the existing prison estate represents better value than building new places. However, capacity constraints mean that MoJ and HMPPS are unable to make cost–effective decisions. For example, HMPPS needs cells to be empty to undertake essential...
Matched on
terms: cost, public
Committee recommendation
74match
#12 - Conduct urgent analysis on targeted HETV Audio-Visual Expenditure Credit uplift for domestic productions
We recommend the BFI urgently conducts analysis on the potential design and return on investment of a targeted uplift to HETV Audio-Visual Expenditure Credit for domestic productions with budgets of £1 million to £3 million per hour. The Government should commit to introducing the measure at the next fiscal event if the projected return on investment and impact...
Matched on
terms: analysi, project
Committee recommendation
69match
#7 - Department and Treasury agree CCUS funding limits but recognise substantial contingent liabilities
A major factor in the failure of the second CCUS competition was the lack of agreement between the Department and HM Treasury on funding limits.15 The Department told us that this time it had agreed an affordability envelope with HM Treasury which has developed as the projects have matured.16 HM Treasury announced up to £20.0 billion of funding...
Matched on
terms: project, public
Committee recommendation
69match
#29 - Government lacks precise data on digital procurement spend and future demand pipeline.
Government lacks data on spend and the pipeline of supply and demand. Available estimates from third parties suggest that government spends at least £14 billion annually on digital procurement, but government has not been able to provide a more precise figure. There is also insufficient information about the pipeline of demand from departments for digital services.50 The Cabinet...
Matched on
terms: cost, public
Committee recommendation
65match
#34 - 6th Report - The Access to Work scheme
The Department told us that it was “quite unlikely” that the scheme paid for itself fiscally, but it did not know that for certain. It explained that, from an Accounting Officer’s point of view, the value of the scheme was over and above the fiscal and economic considerations – it was about the scheme’s benefits to society and...
Matched on
terms: benefit, public
Committee recommendation
65match
#31 - 6th Report - The Access to Work scheme
We asked the Department about the value for money of Access to Work, including how the cost compares with other government employment schemes and how it compares with other nations. The Department told us that, while it had not undertaken any quantitative assessment of the scheme’s effectiveness, it did have qualitative evidence.59 It said that the difficulty was...
Matched on
terms: cost, public
Committee recommendation
65match
#30 - 6th Report - The Access to Work scheme
One of the Department’s principles for awarding Access to Work grants is that any approved support must be value for money.57 However, the Department acknowledges that it does not know whether the scheme provides value for money – it has little evidence on the difference that the funding has made and does not check whether the support was...
Matched on
terms: benefit, public
Committee recommendation
65match
#52 - 1st Report - Rewiring the state: Delivering digital government
Uncertainty over the eventual cost of the digital ID scheme make it impossible to take an informed view on whether it will prove a worthwhile undertaking, even if the operational and security challenges examined in this report were to be resolved. The government was, however, right to say that the digital ID should be built in-house, from the...
Matched on
terms: cost, public
Committee recommendation
65match
#2 - Seventeenth Report - Immigration enforcement
The Department relies upon a disturbingly weak evidence base to assess the impact of its immigration enforcement activity. The lack of reliable evidence on what works prevents it from planning and prioritising its activities effectively. The Department accepts that it cannot easily use data to measure the impact of the £400 million it spends each year in Immigration...
Matched on
terms: analysi, public
Committee recommendation
65match
#15 - Home Office failed to complete a full business case for the Northeye site acquisition.
The Small Ministerial Group, established around November 2022, implemented concessions to the process of acquiring sites, including dispensing with the requirement for a full business case before approving acquisitions. The Home Office began drafting an outline business case for the acquisition of the Northeye site, dated 1 March 2023, but never completed it.42 When asked why a full...
Matched on
terms: cost, public
Committee recommendation
65match
#26 - HS2 Ltd fails to monitor total spending on environmental mitigation schemes.
HS2 Ltd does not monitor how much in total it spends on environmental mitigation. For example, we asked HS2 Ltd how much it was spending on wildlife migration schemes such as for the great crested newt at Halse Copse. In its follow–up letter, HS2 Ltd told us that it was not able 38 Qq 15–16, 18; Letter from...
Matched on
terms: cost, public
Committee recommendation
65match
#6 - Set out total spending and impact of investments on Crown Court backlog reduction.
MoJ could not tell us which of the actions it funded from nearly £500 million of additional funding it received through the 2021 Spending Review had the biggest impact on reducing the backlog, nor could it quantify what it expects the cost to be of dealing with the backlog now, raising concerns over MoJ’s ability to put a...
Matched on
terms: cost, public
Committee recommendation
65match
#46 - MHCLG expects Building Safety Levy to have minimal impact on housing supply.
We asked MHCLG about the potential impacts of the Building Safety Levy on housing provision. MHCLG said it had not published any impact assessment or produced specific numbers, but believed the impact would be relatively small. It told us that it had deliberately designed the Levy to take into account factors to protect housing supply. It explained that...
Matched on
terms: cost, public
Committee recommendation
65match
#15 - Department reviewing strategic options for loan book, including sale or consolidation with other loans
We therefore asked the Department how, if it did not have estimates of future costs beyond 2025–26, it was modelling the expected balance of costs against income in future years. It replied that it was conducting 24 Qq 62, 73; C&AG’s Report, paras 10 and 2.9 25 Qq 67, 71, 72 26 Q 80; C&AG’s Report, paras 10...
Matched on
terms: cost, public
Committee recommendation
65match
#6 - Assess effectiveness and value-for-money of teacher pay against other recruitment initiatives
The Department recognises pay as important in recruiting and retaining teachers, but is less clear on how it considers pay alongside other initiatives and how schools and colleges can afford pay rises. Pay is important in recruiting and retaining teachers. The Department’s influence on pay differs between schools and colleges, for schools, it sets pay ranges and then...
Matched on
terms: benefit, public
Committee recommendation
62match
#1 - Provide comprehensive cost estimates and actual expenditures for the new Office for Value for Money.
The Treasury must provide an estimate of how much the OVfM will cost including the cost of any external consultants it intends to procure, and then provide the actual cost of OVfM after it completes its initial work. (Recommendation, Paragraph 6) Duplication
Matched on
terms: cost
Committee recommendation
62match
#20 - Provide clarity on public expenditure for industrial strategy and Growth Mission through Spending Review.
We recommend that through the Spending Review the Government provides clarity about the sum of public expenditure that will be allocated to the industrial strategy and the wider Growth Mission over the remainder of this Parliament. (Recommendation, Paragraph 91) Pro-business environment
Matched on
terms: public
NAO recommendation
59match
Progress with the merger of the Foreign & Commonwealth Office (FCO) and the Department for International Development (DFID)
The Cabinet Office should ensure there is proper consideration of the costs and benefits of major MoG changes and provide longer-term support and guidance to departments facing significant organisational change. Once the decision has been taken to implement a MoG change, the Cabinet Office should: ? provide guidance on a consistent method of tracking costs, including some measure...
Matched on
terms: benefit, cost
Inquiry recommendation
59match
RHI-39 - Ministerial Familiarity with Legislation
Any Minister presenting the Assembly with legislation for approval should sufficiently read and familiarise themselves with that legislation and ensure an adequate evidence base is publicly available to demonstrate that the benefits justify any attendant costs.
Matched on
terms: benefit, cost, public
PFD report
57match
Mark Welsh
Transport for London displayed an inordinate delay in implementing pedestrian crossings at a dangerous junction, using flawed decision-making based on incomplete accident statistics that omitted overall incidents and near misses.
Matched on
terms: incomplete
Committee recommendation
57match
#8 - HMRC significantly underestimated additional tax revenue from online marketplace VAT liability legislation.
In January 2021 government introduced legislation making online marketplaces liable for VAT from overseas sellers, resulting in £1.5 billion of additional tax a year. This is five times greater than HMRC estimated at the time.15 We asked HMRC why this was, and it explained that the volume of online sales had increased but also that it had imperfect...
Matched on
terms: public
NAO recommendation
56match
Specialist skills in the civil service
The Cabinet Office should work with all functions to develop and report consistent and well-evidenced data on functions’ performance, costs and benefits, building on assurance work done to date.
Matched on
terms: benefit, cost
NAO recommendation
56match
Digital transformation in the NHS
c) Collect more data to enable a better understanding of the full cost of delivering digital transformation and prioritise the work programme. Essential work to lay the foundations of digitisation and interoperability (including data standardisation) should be done before investment in newer technologies. There should be robust assessment of the whole-life costs and benefits of different approaches to...
Matched on
terms: benefit, cost
Committee recommendation
53match
#45 - 1st Report - Investing in the UK economy
We welcome the changes to the Financial Transaction Control Framework to facilitate greater investment into the UK private sector by its public finance institutions. It is now essential that ministers start collecting the data needed on the value, risk and performance of its investments to establish the return they generate. We agree with the NAO’s conclusions about the...
Matched on
terms: public
Committee recommendation
53match
#53 - 1st Report - Rewiring the state: Delivering digital government
The announcement of the government’s final decision on digital ID should be accompanied by full costings and a full impact assessment, as well as details of controls to ensure the scheme, if it is taken forward, does not exceed its delivery timetable or agreed budget. (Recommendation, Paragraph 143)
Matched on
terms: cost
Committee recommendation
53match
#22 - 1st Report - Rewiring the state: Delivering digital government
The new digital centre (GDS) should commission an independent economic analysis for each of the planned activities set out in the roadmap for modern digital government, giving a range of possible financial and economic outcomes for each commitment. (Recommendation, Paragraph 69) Barrier two: Legacy systems
Matched on
terms: analysi
Committee recommendation
53match
#8 - Seventeenth Report - Immigration enforcement
We asked the Department about the financial impact of providing public services to people who should not be receiving them. It could not provide a figure for this.13 We heard that the Department had no data on the harm suffered by people who were victims of organised immigration crime or the distinction between those victims and other immigration...
Matched on
terms: public
Committee recommendation
53match
#6 - Second Report - The Integrated Rail Plan for the North and Midlands
Without having completed a full analysis of the wider economic impacts, it is difficult to see how the Government has fully assessed the levelling-up agenda and the case for different NPR options. Leaving out these key elements of analysis means that the value for money and economic return cannot be compared and validated.
Matched on
terms: analysi