Under the Scheme, the Treasury guarantees that lenders to infrastructure projects will be repaid in full and on time, irrespective of project performance. The NAO is calling for the Treasury to be rigorous and objective in assessing whether the guarantees, which transfer risk to the public sector, are genuinely needed.
This review of five major rail projects highlights lessons the Department for Transport should apply to current and future rail programmes.
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.
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.
Inadequate forecasting is an entrenched problem for government departments, leading to poor value for money and increased costs for the taxpayer.
The DfT and Transport for London have done well to protect taxpayers’ interests in Crossrail but risks remain including delivery of the trains.
Thameslink aims to reduce overcrowding and journey times. Initial progress has been good but a 3 year delay in awarding the train contract puts the 2018 programme deadline at risk.
The strategic case for HS2, in terms of increasing rail capacity and generating regional growth, has still to be demonstrated clearly.
Our financial audit reports contain audit opinions on accounts across the public sector.
There are signs MOD has begun to make trade-offs with cost, time and technical requirements. But some major projects still suffer cost rises and delay.
The competition to let this franchise lacked oversight. The full cost to the taxpayer is unknown, but likely to be significant.
The Better Regulation Executive is currently reviewing controls on regulation. This document is the National Audit Office’s submission to that review. It is based on a combination of our previous work and new work with five case study departments earlier this year.
The HS1 project has delivered a high performing line, which was subsequently sold in a well-managed way. But international passenger numbers are falling far short of forecasts and the project costs exceed the value of journey time saving benefits.
The Olympic Delivery Authority remains on course to deliver its work on the Olympic Park successfully. But almost all of the Public Sector Funding Package is likely to be required, with little scope for unforeseen costs to emerge in the eight months left.
The MOD supply chain is currently not value for money. It would be much more efficient if directed by a modern information system.
The Department for Transport protected the taxpayer and secured value for money in the termination of National Express’s InterCity East Coast franchise.
Comprehensive Spending Review 2007 covering the period 2008-2011
Review of the data systems for Public Service Agreement 5: ‘Deliver reliable and efficient transport networks that support economic growth’
With projected demand falling and costs of carriages rising, there are risks to value for money from plans to increase capacity on the rail network.
The National Audit Office has been unable to conclude that the Ministry of Defence has achieved value for money from the procurement phase of its £10.5 billion private finance deal for the Future Strategic Tanker Aircraft (FSTA), according to a report released today. Despite managing the later stages of the procurement well, the MOD’s ability […]
Venues and infrastructure for the 2012 London Olympic and Paralympic Games are on track to be delivered on time for the Games and the cost is currently forecast to be within the £9,325 million budget for the Games announced in March 2007, according to a progress report to Parliament by the National Audit Office. However, […]