Commons Sense

House of Commons · Ministers' Questions

Government Projects: Cost

Thursday 22 June 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Greg Smith asked about steps to reduce costs in Government projects.
  • The response mentioned the launch of the Infrastructure and Projects Authority's benchmarking data service.
  • Smith highlighted the need for a new private sector viability approach to prevent budget overruns.

Topics (select to filter)

Questions & Answers

Q1 Greg Smith Con Mid Buckinghamshire
Economy
Context

The MP is concerned about the high costs of government projects and their impact on public finances.

Question

What steps his Department is taking to reduce the cost to the public purse of Government projects?

Answer from Jeremy Quin

The Infrastructure and Projects Authority's standards, tools and training for Government projects and its expert advice and cost estimation guidance helps to ensure that Government projects are set up for success. I am pleased to announce that the IPA is launching its benchmarking data service later this year, which will significantly improve the pricing of Government projects through access to a detailed dataset of realised unit costs, delivering much more confidence to cost estimation.

Answered
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Q2 Greg Smith Con Mid Buckinghamshire
Economy Transport
Context

The MP is concerned that government projects blow their budgets because the private sector does not take responsibility and taxpayers bail them out. He uses HS2 as an example.

Question

In reducing costs, the challenge for my right hon. Friend is the way that Government projects are set up in the first place. They blow their budgets because the people set up to deliver them always know that the taxpayer will bail them out. Will he look at introducing a new private sector viability test for Government projects, where a lack of private sector interest would be the warning light that the project is wrong? For example, the total lack of interest from any private sector investor should have been the flashing red beacon for the financial catastrophe that is High Speed 2?

Answer from Jeremy Quin

We take infrastructure challenges seriously. It is incredibly important to bear down on inflation for a whole range of reasons, including the impact on our capital projects. Clearly, inflation has had a dramatic impact over the last 18 months. The IPA is a force for challenge in Government projects. It supports HS2 delivery through advice and assurance, particularly through the annual assurance updates, which help to provide external challenge to the Department when it makes its regular reports to Parliament, which it will do this month.

Partly answered

Not addressed: Introducing a new private sector viability test for Government projects

How: We Take Infrastructure Challenges Seriously, The Ipa Is A Force For Challenge In Government Projects

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Q3 Patrick Grady SNP
Immigration Taxation
Context

No one knows the cost to the public purse of the Nationality and Borders Act 2022 and the Illegal Migration Bill because the government refuses to publish their economic impact assessment.

Question

Of course, no one knows what the cost to the public purse of the Nationality and Borders Act 2022 and the Illegal Migration Bill will be, because the Government are refusing to publish their economic impact assessment. Will the Minister speak to his colleagues in the Home Office to get that economic impact assessment published, not least because if it will not do that, it will face freedom of information requests and complaints to the Information Commissioner's Office, which themselves are going to cost the taxpayer more money?

Answer from Jeremy Quin

The hon. Gentleman has made his point in his normal way and I am certain it will be picked up by my colleagues in the Home Office.

Not addressed: Speaking to colleagues in the Home Office about publishing an economic impact assessment for immigration bills

How: The Hon. Gentleman Has Made His Point In His Normal Way

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