9 Different government departments have different approaches to who delivers major programmes. For some, the department is the 'sponsor body', responsible for setting requirements, budget and benefits. The programme itself is delivered by a 'delivery body' that has the technical expertise to develop the cost, schedule and designs, and to oversee the programme through its lifetime. The delivery body often contracts private sector suppliers to develop more detailed plans, and then to deliver the programme. Alternatively, some departments choose to take on both the sponsor and delivery body roles in-house, contracting with suppliers directly. Figure 2 shows the top 10 largest government programmes by value.
Figure 2 Top 10 major projects and programmes in the Government Major Projects Portfolio (GMPP) by value, as at July 2020 The government has invested in a variety of major programmes across many departments | ||
Programme name | Department | Whole life cost on Government Major Projects Portfolio as at 9 July 2020 (£m) |
High Speed Two Rail programme | Department for Transport | 55,700 |
Heathrow Expansion Programme | Department for Transport | 32,608 |
Dreadnought | Ministry of Defence | 30,100 |
Complex Weapons | Ministry of Defence | 28,717 |
Nuclear Warhead Capability Sustainment Programme | Ministry of Defence | 20,901 |
Smart Metering Implementation Programme | Department for Business, Energy & Industrial Strategy | 20,137 |
Crossrail programme | Department for Transport | 17,631 |
Geological Disposal Facility Programme | Department for Business, Energy & Industrial Strategy | 12,743 |
Universal Credit Programme | Department for Work & Pensions | 12,717 |
Land Environment Tactical Communication and Information Systems | Ministry of Defence | 11,400 |
Notes 1 The whole life cost is from the Infrastructure and Projects Authority's 2020 Annual Report data and may not reflect other government announcements, for example on High Speed Two. 2 Costs are whole life costs, and include non-government funding. This means that some programmes, such as the Heathrow Expansion programme, are included even though the government expects the costs to be met by the private sector. Source: National Audit Office analysis of Infrastructure and Projects Authority 2020 Annual Report, published July 2020 | ||
10 HM Treasury sets the government's approval process for programmes that are above departmental delegated spending limits or which are novel, contentious or significantly repercussive for future public finance.1 Figure 3 on pages 10 and 11 sets out the government's framework for approving and managing major programmes, including the activities that commonly take place at each stage.
11 The Infrastructure and Projects Authority (IPA) is the government's centre of expertise for infrastructure and major projects. The IPA provides expert project delivery advice, support and assurance to government departments, and works with industry to ensure that projects are delivered efficiently and effectively, and to improve performance over time. It leads the project delivery and project finance profession across government, and the embedding of lessons learned, such as those in their Lessons from Transport for the Sponsorship of Major Projects (produced jointly with the Department for Transport).2 It also oversees the GMPP which aims to improve the delivery of the government's biggest and riskiest projects by increasing transparency and providing independent assurance.
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1 HM Treasury, Treasury approvals process for programmes and projects; available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/567908/Treasury_approvals_process_guidance_final.pdf, November 2016
2 Available at: www.gov.uk/government/publications/lessons-from-transport-for-the-sponsorship-of-major-projects