The Major Projects Report 2013
Published on:MOD’s procurement budget is now more stable, despite a £754m increase in the cost of the carriers, but there are still risks to the affordability of the equipment plan.
MOD’s procurement budget is now more stable, despite a £754m increase in the cost of the carriers, but there are still risks to the affordability of the equipment plan.
The Public Bodies Reform Programme is making good progress in abolishing or merging public bodies and reducing their costs, but triennial reviews of remaining bodies need to be much more effective.
Inadequate forecasting is an entrenched problem for government departments, leading to poor value for money and increased costs for the taxpayer.
The BBC Executive did not have a sufficient grip on its Digital Media Initiative programme. Nor did it commission a thorough independent assessment to see whether it was technically sound.
The DfT and Transport for London have done well to protect taxpayers’ interests in Crossrail but risks remain including delivery of the trains.
Treasury expects all departments to evaluate the ex post impacts and costs of all their interventions, including spending, taxation and regulation. This activity should provide valuable information on the cost-effectiveness of government interventions, for the purposes of accountability and to learn lessons to improve current and future policies.
Optimism bias in public sector projects is not a new phenomenon. But it is one that persists, frequently undermining projects’ value for money as time and cost are under estimated and benefits over estimated. This report uses our back catalogue to illustrate the consequences of over optimism. In doing so, we have identified some contributory factors – such as project complexity and an organisation’s culture of challenge.
The NAO welcomes the progress being made by the Northern Ireland Social Security Agency in reducing levels of fraud and error in benefit payments.
The Government’s first sale of shares in Lloyds Banking Group was managed very effectively by United Kingdom Financial Investments Limited.
Many new Free Schools have been established quickly and at relatively low cost but the DfE will need to tackle a rising cost trend and systematically learn lessons from problems in a few early wave schools.
The DWP has not to date achieved value for money in the development of Universal Credit and to do so in future it will need to learn the lessons of past failures.
Two government programmes aiming to help families with multiple challenges, such as unemployment and anti-social behaviour, are starting to provide benefits but considerable challenges remain.
BIS will not be well-placed to secure value for money on student loan repayments until it has a more robust strategy to improve collection performance.
HMRC and the Treasury do not know if incentives designed to increase charitable giving, at a cost to the taxpayer of £940 million in 2012-13, have resulted in more income for charities.
The NAO challenges government and its private sector contractors to work together more effectively in taxpayers’ interest and address the issues behind the current crisis of confidence in contracting out public services.
The NAO challenges government and its private sector contractors to work together more effectively in taxpayers’ interest and address the issues behind the current crisis of confidence in contracting out public services.
In March 2013, the Minister for Consumer Affairs, along with the Economic Secretary to the Treasury, confirmed in a statement in the House of Commons that the government has drawn on our analysis as it develops a new regulatory regime for consumer credit markets.
This NAO impacts case study represents one example where there has been some beneficial change, whether financial or non-financial, resulting from our involvement.
Older ICT systems critical for the delivery of key public services (‘legacy ICT’) expose departments to risks which must be understood and managed.
Universal Credit plans were driven by an ambitious timescale, and this led to the adoption of a new approach. The programme suffered from weak management and ineffective control.
The Border Force has successfully implemented full passenger checks and cut queuing times but at the cost of maintaining other aspects of border security.