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Warnings over flagship government projects Warnings over flagship government projects
(about 2 hours later)
More than 30 of the coalition's flagship schemes, including Universal Credit and the West Coast Main Line scheme, are at serious risk of failure, a government annual report has warned. More than 30 of the coalition's flagship schemes, including Universal Credit and high-speed rail, are at serious risk of failure, a report says.
The Major Projects Authority (MPA) has given 32 projects a red or amber/red rating, meaning they are deemed unachievable or in doubt. The government's Major Projects Authority (MPA) has given 32 schemes a red or amber/red rating, meaning they are deemed unachievable or in doubt.
Red projects include two £7bn aircraft carriers dogged by delays. Red projects include two £7bn aircraft carriers dogged by delays, and a new passport applications system.
The Cabinet Office welcomed the report and said it would lead to improvements.The Cabinet Office welcomed the report and said it would lead to improvements.
The MPA was established in 2010 in a bid to turn around the civil service's "lamentable record" of delivering large schemes.The MPA was established in 2010 in a bid to turn around the civil service's "lamentable record" of delivering large schemes.
Its report warns that billions of pounds of public money could be at risk because of delays and inefficiencies in delivering key projects. Documents setting out the status of projects worth £350bn were released on Friday, and the MPA is warning that large portions of that public money could be at risk because of delays and inefficiencies.
Documents setting out the status of projects worth £350bn were released on Friday. 'Unachievable'
'Urgent action'
Eight red projects - meaning those deemed unachievable as a result of budget, schedule or delivery problems - include the West Coast Main Line scheme.
In October, the government scrapped its decision to award the £5bn franchise to FirstGroup.
The mistakes in the West Coast process came to light after rival bidder Virgin Trains launched a legal challenge against the decision.
Virgin will continue running the service until November 2014, when a new long-term franchise will begin.
Some 23 schemes given an amber/red rating, meaning their successful delivery is in doubt and urgent action needs to be taken, include some of Work and Pensions Secretary Ian Duncan Smith's welfare reforms and the HS2 high-speed rail network.
Of 191 programmes assessed, 32 were given the green all-clear rating with 49 classed as amber/green.Of 191 programmes assessed, 32 were given the green all-clear rating with 49 classed as amber/green.
Some 58 were amber and 21 were exempt from ranking.Some 58 were amber and 21 were exempt from ranking.
Cabinet Office Minister Francis Maude said the MPA had helped to save more than £1.7bn. Eight red projects - meaning those deemed unachievable as a result of budget, schedule or delivery problems - include the refranchising of the West Coast Main Line scheme.
In October, the government scrapped its decision to award the £5bn franchise to FirstGroup, meaning Virgin Trains will continue running the service until November 2014, when a new long-term franchise is due to begin.
Also among the red projects were: Watchkeeper, a new unmanned aerial vehicle for the Army; a new computer system for the Ministry of Justice; and a new system for the Home Office to manage passport applications.
Some 23 schemes were given an amber/red rating, meaning their successful delivery is in doubt and urgent action needs to be taken.
They include some of Work and Pensions Secretary Ian Duncan Smith's welfare reforms, such as the introduction of the Personal Independence Payment - the replacement for Disability Living Allowance - and the controversial benefit cap, limiting the maximum amount any household can receive.
In a number of cases highlighted by the MPA - including Universal Credit - the government said the data used to rate the projects was now six to 12 months old and things had improved considerably since then.
The HS2 high-speed railway line, linking London with Birmingham and Manchester at a current estimate of £33bn, was also designated amber/red.
Last week, the National Audit Office warned the economic benefits of the vast project were unclear.
'Off track'
Cabinet Office Minister Francis Maude said the MPA had already helped to save more than £1.7bn.
He said that, when he came into government, there was "a relaxed approach to managing projects worth hundreds of billions of pounds" with problems "swept under the carpet where they festered at the taxpayers' expense".He said that, when he came into government, there was "a relaxed approach to managing projects worth hundreds of billions of pounds" with problems "swept under the carpet where they festered at the taxpayers' expense".
"Since the general election we have got things back on track and are equipping the civil servants with the skills they need," he said."Since the general election we have got things back on track and are equipping the civil servants with the skills they need," he said.
He added: "There's much more to do but thanks to the work of excellent officials we now expect to double the success rate of major projects, compared with the figures from 2010."He added: "There's much more to do but thanks to the work of excellent officials we now expect to double the success rate of major projects, compared with the figures from 2010."
But shadow Cabinet Office minister John Trickett said the report offered "yet more proof that David Cameron's government has no answers to the challenges facing this country" But shadow Cabinet Office minister Gareth Thomas told the BBC: "The most striking thing is just how many huge government projects are off track and are at risk of not being delivered, and the sheer scale of public money that's at risk."
"The economy is flatlining, prices are going up faster than wages, almost one million young people are unemployed and there's a crisis in A&E - yet all David Cameron offers is failure and more of the same," he added. Mr Thomas also accused the government of trying to hide the MPA's findings.
"It was slipped out at five o'clock on a Friday, when Parliament wasn't sitting, so preventing Members of Parliament from getting to grips with the detail in this report," he said.
And Matthew Sinclair, chief executive of the Taxpayers' Alliance, said: "The fact that this report was quietly slipped out on a Friday evening will only add to suspicions that the government was trying to bury bad news.And Matthew Sinclair, chief executive of the Taxpayers' Alliance, said: "The fact that this report was quietly slipped out on a Friday evening will only add to suspicions that the government was trying to bury bad news.
"Alarm bells will now be ringing yet again for taxpayers over central government's ability to deliver value for money on some of its multi-billion pound projects.""Alarm bells will now be ringing yet again for taxpayers over central government's ability to deliver value for money on some of its multi-billion pound projects."