Search results

Managing assets and liabilities

A key aspect of good financial management is the effective management of those assets and liabilities that are of strategic importance to the UK, which often have decades-long life-spans. These range from infrastructure assets such as flood defences and transport, to long-term liabilities such as incentives for electricity generation. The scale, complexity and long time-frames make managing these assets and liabilities highly challenging, especially as different Governments must maintain them and account to taxpayers.

To take a strategic approach, government needs to collect accurate information (eg about asset deterioration) and build effective relationships with key suppliers. It needs to make long-term plans when determining infrastructure finance, forecasting future demand, and valuing liabilities and long-term guarantees.

Key NAO publication:

Lessons from cancelling the InterCity West Coast franchise competition (Dec 2012)

Optimising the defence estate

This report examines the Ministry of Defence’s progress in optimising its estate and disposing of sites that are not needed.

Sector(s): Infrastructure

Performance Improvement area(s): Cost reduction and affordability, Financial and service sustainability, Major project delivery, Managing assets and liabilities, People and Operational Management

Department(s): Ministry of Defence

Published:
11 Jun 2021

Managing PFI assets and services as contracts end

This report provides information on managing PFI contracts when they end and considers whether government is preparing for expiry appropriately.

Sector(s): Central Finance and Treasury, Local services, Regulation, consumers and competition

Performance Improvement area(s): Contract lifecycle, Financial and service sustainability, Infrastructure finance, Local service delivery, Major project delivery, Managing assets and liabilities, Oversight of service delivery, Performance measurement

Department(s): Cabinet Office, HM treasury

Published:
5 Jun 2020

Delivering the defence estate

The MoD has developed a strategy that identifies the estate it needs and the 25% of its estate it can dispose of by 2040. However, the strategy and current funding levels allow only for a partial reversal of the decline in the condition of the remaining estate. There is a significant risk that the poor condition of the estate will affect the Department’s ability to provide the defence capability needed.

Sector(s): National security

Performance Improvement area(s): Financial and risk management, Major project delivery, Managing assets and liabilities

Department(s): Ministry of Defence

Published:
15 Nov 2016

Progress on the Sellafield site: an update

The NAO has today published an update for the Public Accounts Committee, detailing developments in the management of the Sellafield site, the UK’s largest and most hazardous nuclear site, and the extent to which progress has been made in decommissioning and cleaning it up.

Sector(s): Energy and environment, Parliament

Performance Improvement area(s): Commissioning, Major project delivery, Managing assets and liabilities

Department(s): Department for Business, Energy and Industrial Strategy

Published:
4 Mar 2015

Strategic flood risk management

The Environment Agency has improved the cost effectiveness and prioritization of its flood risk spending but current spending is insufficient to meet many flood defence maintenance needs.

Sector(s): Energy and environment

Performance Improvement area(s): Environmental sustainability, Managing assets and liabilities

Department(s): Department for Environment Food and Rural Affairs

Published:
5 Nov 2014

Procuring new trains

Long-standing issues in the rail industry and the scale of the procurements led to the DfT’s decision to lead the procurements itself, despite not having led a major rolling stock procurement before.

Sector(s): Infrastructure, Transport

Performance Improvement area(s): Contract lifecycle, Major project delivery, Managing assets and liabilities

Department(s): Department for Transport

Published:
9 Jul 2014

Maintaining strategic infrastructure: roads

The lack of predictability of funding for highways authorities has practical implications for road networks and may lead to increased costs in the long term.

Sector(s): Infrastructure, Local services, Transport

Performance Improvement area(s): Infrastructure finance, Major project delivery, Managing assets and liabilities

Department(s): Department for Transport

Published:
6 Jun 2014

Lessons from cancelling the InterCity West Coast franchise competition

The competition to let this franchise lacked oversight. The full cost to the taxpayer is unknown, but likely to be significant.

Sector(s): Infrastructure, Transport

Performance Improvement area(s): Contract lifecycle, Major project delivery, Managing assets and liabilities

Published:
7 Dec 2012

The creation and sale of Northern Rock plc

The Treasury’s 2009 decision to split Northern Rock in two was reasonable at the time but the final net cost to the taxpayer could be some £2 billion.

Sector(s): Central Finance and Treasury

Performance Improvement area(s): Asset sales and privatisation, Managing assets and liabilities

Published:
18 May 2012

The mortgage rescue scheme

The Mortgage Rescue Scheme, launched in January 2009 by the Department for Communities and Local Government, achieved fewer than half of the rescues expected. The Department helped 2,600 households avoid repossession and homelessness at a cost of in excess of £240 million – but it originally expected to help 6,000 households for £205 million.

Sector(s): Local services

Performance Improvement area(s): Managing assets and liabilities

Published:
25 May 2011