Treasury unveils new cost programme

New initiative to replace cost review; new chair for Infrastructure Client Group that will support programme

The Treasury has launched a new programme to further reduce costs and improve the delivery of infrastructure.

Following the completion of its Infrastructure Cost Review programme, which ran from 2010 until its final report in July this year, Commercial Secretary to the Treasury Lord Deighton has now launched the refreshed ‘Infrastructure Cost’ programme.

The new initiative sets out a series of projects and actions to change the behaviour of government, clients and industry, building on the review programme that has already identified £3bn of annual savings since 2010.

The programme will address four key themes:
  • Improving pipeline visibility and certainty
  • Improving project initiation and procurement
  •  Whole life planning and cost control
  • Supply chain skills and construction delivery

Andy Mitchell, chief executive of Thames Tideway Tunnel, has taken over as chair of the Infrastructure Client Group, which will work with Lord Deighton and Infrastructure UK (IUK) on the new plan.

“The recently published IUK Cost Review report set out the government’s plans for a renewed attack on the drivers of high costs and barriers to innovation,” said Lord Deighton.