Incomplete Public Project Cost-Benefit Analysis

#14 —

Business and Trade Committee

Recommendation: 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 …

Response Pending

#34 —

Public Accounts Committee

Recommendation: 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 …

Response Pending

#33 —

Public Accounts Committee

Recommendation: 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 …

Response Pending

#31 —

Public Accounts Committee

Recommendation: 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 …

Response Pending

#30 —

Public Accounts Committee

Recommendation: 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 …

Response Pending

#7 —

Public Accounts Committee

Recommendation: 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 …

Response Pending

#49 —

Business and Trade Committee

Recommendation: 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 …

Response Pending

#45 —

Business and Trade Committee

Recommendation: 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 …

Response Pending

#53 —

Science, Innovation and Technology Committee

Recommendation: 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 …

Response Pending

#52 —

Science, Innovation and Technology Committee

Recommendation: 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 …

Response Pending

#22 —

Science, Innovation and Technology Committee

Recommendation: 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 …

Response Pending

#3 —

International Development Committee

Recommendation: 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 …

Gov response: As the Prime Minister noted in Parliament on 16 June, Australia, Canada and New Zealand all run generous and respected development programmes and foreign policy from one Ministry. Merging the departments allows us to bring …

Under Consideration

#20 —

Public Administration and Constitutional Affairs Committee

Recommendation: 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 …

Gov response: The IPA strives to build the best-performing project system of any country in the world and is taking bolder action to work towards this ambition and improve outcomes. This work is being done through the …

Under Consideration

#17 —

Public Administration and Constitutional Affairs Committee

Recommendation: 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 …

Gov response: including benefits being properly scoped and understood. Government agrees that benefits should be reported and the IPA encourages departments to publish their own data and provide information to Parliament and committees setting out forecasted and …

Under Consideration

#5 —

Public Administration and Constitutional Affairs Committee

Recommendation: 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 …

Gov response: The Government’s institutional framework for infrastructure and major projects has undergone significant change and improvement in recent years. The National Infrastructure Commission (NIC), IPA and HM Treasury are at the heart of this framework. The …

Under Consideration

#8 —

Public Accounts Committee

Recommendation: 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 …

Gov response: The government agrees with the Committee’s recommendation. Target implementation date: Spring 2022 The Home Office (the Department) has a significant programme of work underway to enhance its understanding of the illegal population within the UK. …

Not Addressed

#2 —

Public Accounts Committee

Recommendation: 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 …

Gov response: 2.1 The government agrees with the Committee’s recommendation. Ta rget implementation date: March 2021 2.2 The department’s priority is to ensure that the collection, use and analysis of data support the effective delivery of public …

Not Addressed

#22 —

Public Accounts Committee

Recommendation: 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 …

Gov response: 7.1 The government agrees with the Committee’s recommendation. Recommendation implemented 7.2 As requested by the Committee, the Permanent Secretary to the Treasury wrote to the committee on 20 January 2021 outlining how HM Treasury will …

Not Addressed

#6 —

Transport Committee

Recommendation: 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 …

Gov response: The Government accepts this recommendation and will publish the terms of reference for this work before the summer recess. The Government anticipates that work on the study will take around 18 months. Preparatory work has …

Accepted

#13 — Home Office underestimated large accommodation site set-up costs due to optimism bias and inadequate expertise.

Public Accounts Committee

Recommendation: 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 …

Gov response: 2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 A raft of measures has been implemented to address weaknesses. The programme was recently restructured to deliver smaller sites, requiring lighter touch refurbishment and …

Accepted

#10 — Home Office unable to explain significant additional escort training costs for Rwanda scheme.

Public Accounts Committee

Recommendation: 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 …

Gov response: 1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 The Home Office has already set out the funds paid to the Government of Rwanda as part of the Migration and Economic Development Partnership …

Not Addressed

#1 — Provide comprehensive cost estimates and actual expenditures for the new Office for Value for Money.

Treasury Committee

Recommendation: 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 …

No Published Response

#22 — Home Office failed to adequately assess acquisition risks and costs for Northeye site.

Public Accounts Committee

Recommendation: 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 …

Under Consideration

#15 — Home Office failed to complete a full business case for the Northeye site acquisition.

Public Accounts Committee

Recommendation: 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 …

Under Consideration

#2 — Set out changes to ensure Home Office investment decisions use comprehensive information and transparent consultation

Public Accounts Committee

Recommendation: 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 …

Under Consideration

#14 — Uncertainty remains regarding precise consumer/taxpayer funding balance for the £22 billion CCUS programme

Public Accounts Committee

Recommendation: 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% …

Gov response: 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 3.2 The department continuously assesses the affordability and value for money of government support for CCUS as part of key policy and …

Not Addressed

#7 — Department and Treasury agree CCUS funding limits but recognise substantial contingent liabilities

Public Accounts Committee

Recommendation: 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 …

Gov response: Introduction from the Committee Carbon capture, usage and storage (CCUS) technologies capture carbon before it is released into the atmosphere and store it permanently underground. They can be applied to a range of industrial applications, …

Not Addressed

#3 — Assess the full CCUS programme's affordability for taxpayers and consumers amid cost of living pressures

Public Accounts Committee

Recommendation: 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 …

Gov response: The government agrees with the Committee’s recommendation. government support for CCUS as part of key policy and decision-making processes to keep the UK on the least cost pathway to net zero, including Carbon Budget Delivery …

Accepted

#8 — HMRC significantly underestimated additional tax revenue from online marketplace VAT liability legislation.

Public Accounts Committee

Recommendation: 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 …

Gov response: 1a. PAC recommendation: HMRC should assess why the additional tax it now collects from online marketplaces is five times greater than it predicted. In particular, how much is due to underestimating the scale of evasion, …

Partially Accepted

#26 — HS2 Ltd fails to monitor total spending on environmental mitigation schemes.

Public Accounts Committee

Recommendation: 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 …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 4.2 The department intends to provide the Committee with a preliminary response in its letter to the Committee before the Summer recess …

Not Addressed

#28 — MoJ lacks confidence in securing resources for criminal justice reforms

Public Accounts Committee

Recommendation: We asked witnesses for a breakdown of the £477 million received in the 2021 Spending Review, and an outline of what it achieved. We were told that it “depends on what the counterfactual is”. Without that funding, MoJ told us …

Gov response: 6.1 The government agrees with the Committee’s recommendation. Recommendation implemented: April 2025 6.2 In response to this recommendation, the Ministry of Justice has written to the Committee alongside this Treasury Minute response.

Not Addressed

#27 — Ministry of Justice cannot quantify total spending on Crown Court backlog accurately.

Public Accounts Committee

Recommendation: As the NAO report found, MoJ cannot put a figure on how much has been spent on addressing the backlog in the Crown Court, as actions to address the backlog are spread over different parts of the criminal justice system.73 …

Gov response: 6.1 The government agrees with the Committee’s recommendation. Recommendation implemented: April 2025 6.2 In response to this recommendation, the Ministry of Justice has written to the Committee alongside this Treasury Minute response.

Not Addressed

#6 — Set out total spending and impact of investments on Crown Court backlog reduction.

Public Accounts Committee

Recommendation: 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 …

Gov response: The government agrees with the Committee’s recommendation. Committee alongside this Treasury Minute response.

Accepted

#18 — Ministry of Justice has not assessed additional costs incurred for urgent prison place delivery

Public Accounts Committee

Recommendation: 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 …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 As the Committee notes, there have been acute issues in responding to prison capacity which have also led to additional costs in the Criminal …

Accepted

#4 — Set out methodology to estimate Criminal Justice System costs due to prison capacity pressures.

Public Accounts Committee

Recommendation: 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 …

Gov response: The government agrees with the Committee’s recommendation. Recommendation implemented As the Committee notes, there have been acute issues in responding to prison capacity which have also led to additional costs in the Criminal Justice System, …

Accepted

#46 — MHCLG expects Building Safety Levy to have minimal impact on housing supply.

Public Accounts Committee

Recommendation: 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 …

Gov response: 7.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2025 7.2 The government will write to the Committee before the end of 2025 to provide an update on the interaction between remediation …

Accepted

#7 — Publish formal assessment of remediation policies' impact on housebuilding targets and identify mitigation actions.

Public Accounts Committee

Recommendation: 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. …

Gov response: The government agrees with the Committee’s recommendation. update on the interaction between remediation policies and housebuilding ambitions. Specifically on the Building Safety Levy, the government will publish an impact assessment alongside the draft levy regulations …

Accepted

#15 — Department reviewing strategic options for loan book, including sale or consolidation with other loans

Public Accounts Committee

Recommendation: 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; …

Gov response: 3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 3.2 The department continues to keep its long-term strategic options under review. The department commissioned external advice on its strategic options in …

Not Addressed

#14 — Department conducted minimal analysis of future loan management costs beyond March 2025

Public Accounts Committee

Recommendation: 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 …

Gov response: 3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026 3.2 The department continues to keep its long-term strategic options under review. The department commissioned external advice on its strategic options in …

Not Addressed

#12 — Conduct urgent analysis on targeted HETV Audio-Visual Expenditure Credit uplift for domestic productions

Culture, Media and Sport Committee

Recommendation: 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 …

Gov response: The government has shown its commitment to keeping the UK’s Audio-Visual Expenditure Credit (AVEC) competitive by providing additional support for independent films at a rate of 53% and introducing a 5% uplift in relief for …

Not Accepted

#20 — Provide clarity on public expenditure for industrial strategy and Growth Mission through Spending Review.

Business and Trade Committee

Recommendation: 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 …

Gov response: 12.1. The government is investing billions to support the Industrial Strategy’s 8 growth driving sectors, including with £4bn of additional capital through the British Business Bank, and up to £4.3bn for Advanced Manufacturing. Through these …

Accepted

#29 — Government lacks precise data on digital procurement spend and future demand pipeline.

Public Accounts Committee

Recommendation: 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 …

Gov response: 5.1 The government agrees with the committee’s recommendation. Target implementation date: December 2025 5.2 The GCF Digital & Data Team will set out the process to leverage commercial insights from data held across the eco-system, …

Accepted

#5 — Set out how to ensure data and capability for informed technology supplier spending decisions.

Public Accounts Committee

Recommendation: Government’s ability to get the best deals with technology suppliers is being hampered by its lack of knowledge of what it is spending or its future needs. Government estimates that it spends over £14 billion each year on digital commercial …

Gov response: The government agrees with the committee’s recommendation. from data held across the eco-system, which will include the development of a standard framework for procurement platforms as well as the delivery of the central digital platform, …

Accepted

#18 — Ministerial decisions on industry support trade-offs lack explicit, detailed methodology

Public Accounts Committee

Recommendation: We asked the Department how it balances trade-offs when making decisions about support, and how it makes this explicit. Officials told us that it assesses interventions using HM Treasury’s five principles. Proposals are then put to Ministers who make decisions …

Gov response: 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2026 4.2 The government is aligning industry support with strategic priorities, including the Industrial Strategy. Following the Green Book Review 2025: Findings and …

Not Addressed

#23 — Estimated lifetime value of T Levels based on uncertain assumptions.

Public Accounts Committee

Recommendation: The Department’s current “best judgement” is that T Levels will be 25% more valuable than other level 3 qualifications (around £23,000 per student over their lifetime, in 2019–20 prices).71 It will get a better understanding of this uplift as the …

Not Addressed

#2 — Publish comprehensive evaluation of Skilled Worker visa route’s costs, benefits, and impact on skill shortages.

Public Accounts Committee

Recommendation: 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 …

Gov response: The government agrees with the Committee’s recommendation. Immigration White Paper on 12 May. Skilled worker evaluation. The evaluation of the Skilled Worker route found that visa holders were primarily motivated to come to the UK …

Accepted

#24 — Department lacks comprehensive analysis comparing cost-effectiveness of incentives against direct teacher pay increases.

Public Accounts Committee

Recommendation: 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 …

Gov response: 6.3 Evidence suggests that pay can be an effective lever at scale; for example, the National Foundation for Educational Research (NFER) estimates that a 1% improvement in competitiveness of school teacher pay increases recruitment by …

Not Addressed

#10 — Department lacks robust value-for-money analysis for teacher recruitment initiatives and spending

Public Accounts Committee

Recommendation: 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 …

Gov response: 2.3 The department is investing in analysing and evaluating policies to understand impact, maximise value for money and ensure focus on our best evidenced levers. The department’s strategy is underpinned by a robust and expanding …

Accepted

#6 — Assess effectiveness and value-for-money of teacher pay against other recruitment initiatives

Public Accounts Committee

Recommendation: 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. …

Gov response: The government agrees with the Committee’s recommendation. inform which actions best ensure schools and colleges have sufficient high-quality teachers. Evidence suggests that pay can be an effective lever at scale; for example, the National Foundation …

Accepted

#23 — Treasury prioritises private finance for incentivised risk management and expert due diligence.

Public Accounts Committee

Recommendation: 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 …

Gov response: 5.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2026 5.2 Identifying where the private sector is better placed to identify, assess, price and manage risks – and structuring contracts to reliably …

Accepted