1.1 The 2010 Spending Review set out plans for around £80 billion of savings in public expenditure. To achieve these, the Government will need to effect a step-change in spending control. On the one hand, this means strengthening arrangements for scrutiny and control of spending, both within departments and by the Treasury. On the other hand, it means focusing this enhanced scrutiny where it is most valuable. In line with these objectives, the Treasury has strengthened its project approval processes.
1.2 Alongside this, the Coalition's Programme for Government makes a clear commitment to achieving better value for money for public spending. This includes a strong will to improve the success and delivery of Major Projects. In line with this aim, the Prime Minister has written to Cabinet announcing the establishment of the Major Projects Authority (MPA) within the Cabinet Office's Efficiency and Reform Group (ERG). The MPA replaces the Major Projects Directorate in the Office of Government Commerce (OGC).
1.3 The aim of the MPA is to bring about the successful delivery of Major Projects across central Government by working with departments to ensure the fitness and quality of Major Projects throughout their life. This will be achieved by introducing revised procedures for the assurance and support of Major Projects, and ensuring they are integrated with strengthened Treasury approval processes. This guidance outlines these revised procedures and sets out how they will work together within an integrated assurance and approval framework.
1.4 The overall process that all Major Projects must follow from 1 April 2011 onwards is outlined in the Integrated Assurance and Approvals Flow Diagram at Annex A. Most of this should not be new; some departments are already following this basic approach. These guidelines will ensure that this good practice is applied consistently across government, and more clearly aligns assurance and approvals processes.
1.5 There is a strong belief within Government and the National Audit Office, that proportionate scrutiny and assurance that is deployed at the right times, will significantly improve Major Project performance.