Oral Answers to Questions

Marco Longhi Excerpts

Thursday 14th July 2022 Commons Chamber

[Kit Malthouse]

I have learned over my years in government, national and local, that one of the key factors that we should have in mind is balance. While the hon. Lady is right that we should always have in mind the ability to assist those who are struggling most in our society, we have to balance that against the health of the economy and our ongoing ability to provide exactly that assistance. North of the border, as far as I can see, the Scottish Government concentrate on one and neglect the other. I am sure that there are many people who drive the wealth creation effort in Scotland who rue the day that the SNP Government took office, because Scotland has undoubtedly performed worse economically than other parts of the United Kingdom over the past 10 years.

[Marco Longhi (Dudley North) (Con)]

5. What progress his Department has made on reducing the cost of Government projects to help ensure value for money in public spending.

[Felicity Buchan (Kensington) (Con)]

8. What progress his Department has made on reducing the cost of Government projects to help ensure value for money in public spending.

[The Minister for Brexit Opportunities and Government Efficiency (Mr Jacob Rees-Mogg)]

Before I reply, I want to make it clear that the figure is 1.4 million envelopes at the DVLA—I misheard a helpful heckle.

I gave part of the answer to this question on 12 July, in reply to written parliamentary questions 29939 and 30195. The Infrastructure and Projects Authority provides expert advice and independent assurance on the Government major projects portfolio. Working alongside HM Treasury, which is responsible for value for money, it develops robust project cost estimates and builds capacity and capability to deliver effectively. The 2022 IPA annual report will set out progress made on the GMPP.

[Marco Longhi]

As a civil engineer, I was never an enthusiastic supporter of HS2 as the cost-benefit analysis of the project was never completely clear to me. One thing I know as a civil engineer is that project creep, and its related costs, is a very real thing. The Transport Secretary announced—in March—£1.7 billion of potential future cost pressures, so what steps is the Minister’s Department taking to ensure that cost pressures are managed pre-emptively rather than reacted to?

[Mr Rees-Mogg]

My hon. Friend is wise to raise these important points, because taxpayers’ money must always be dealt with carefully. The Department for Transport is closely monitoring the rate of increase of potential contingency spend on HS2, together with any opportunities to realise cost savings through the monthly ministerial taskforce meetings. The £1.7 billion of potential future cost pressures reported in March is manageable within the phase 1 target cost of £40.3 billion given the level of remaining contingency, noting that that represents less than 4% of the overall budget.