15 The underlying trend of the Major Projects is reduced cost growth at the project level, even though in 2011 the total forecast cost of Major Projects rose by nearly £0.5 billion. This includes £113 million of capability enhancements. As a result of this in-year cost growth and previous cost increases, the Major Projects are now in total more than £6.1 billion (11.4 per cent) over the forecast cost from when the main investment decision was made. As well as decisions taken to enhance capabilities, a significant part of this year's increase has been due to action by the Department to balance its overall budget by delaying the Astute project.
16 The Department had limited options to manage a legacy of poor planning and performance on some past projects. These circumstances were largely, however, of the Department's making and the resulting cuts and delays to capability are not value for money. The Department acknowledges that its budgetary position is serious and has taken steps to reduce its budget deficit over the longer term. Both a balanced budget and a continuing focus on improving project performance are necessary to create the conditions for effective and sustainable acquisition in the future.