Transparency data

A417 ‘Missing Link’: accounting officer assessment (April 2022)

Updated 27 November 2023

Background

This accounting officer assessment (AOA) was completed to align with the project’s updated outline business case (OBC).

The AOA was produced by National Highways (NH) (formerly Highways England) and the Department for Transport (DfT). The senior responsible owner for the A417 project sits within NH. The NH Chief Executive is the Accounting Officer for the project’s expenditure and DfT’s Investment, Portfolio and Delivery Committee (IPDC), to which the project reports, is chaired by the DfT Permanent Secretary who is the Principal Accounting Officer.

Overview

The upgrade of the A417’s 3.5-mile single carriageway section, known as the ‘Missing link’, was announced in the second Road Investment Strategy (RIS2): 2020-25, in March 2021.

The A417/A419 provides a 32 mile strategic link between Swindon, M4 (Junction (Jct) 15) and Gloucester/Cheltenham, M5 (Jct 11a) in the South West. It is also used as an alternative commuter route to the M4/M5 via Bristol.

The improved connection between 2 dual carriageway sections of the A417 at Brockworth and Cowley will support and facilitate economic growth across the sub-region, giving greater infrastructure resilience, reducing congestion and increasing journey time reliability.

Key project objectives are:

• transport and safety: to reduce delays, create a free-flowing, reliable road network and improve safety along this stretch of the A417
• environment and heritage: to reduce the impact on the landscape, natural and historic environment of the Cotswolds and, where possible, enhance the surrounding environment
• community and access: to reduce queuing traffic and pollution, improve access for local people to the strategic road network, and support residents and visitors’ enjoyment to the countryside
• economic growth: to help boost growth and prosperity by making journeys more reliable and improving connectivity.

Regularity

The development consent order process is being used to gain approval to build the scheme. The project’s delivery schedule was extended to give more time for the planning application preparations, and to accommodate a longer than originally forecasted construction phase duration. The latter was due to the location’s challenging environmental and engineering complexities.

The project’s cost estimate has seen some movement during the development phase. At the time of the AOA, the OBC related cost estimate factored in a number of design changes (including alternative crossings in new locations and design efficiencies) and a later open for traffic forecast date than the 2024 to 2025 public commitment. As such some funding will move from RIS2 to RIS3. However, the RIS2 works and spend remains affordable and within the overall RIS2 budget. The project will be included within RIS3 when it is developed and finalised.

Propriety

The project is working to the HM Treasury (HMT) Green Book, the European System of Accounts and within the policies set out in the “Managing Public Money” guidelines.

The project requires, and has, NH Board, DfT IPDC and HMT approval. The scheme was due to return to IPDC with a schedule update before the end of 2021, but this was delayed until after NH’s Delivery Partner is onboard in mid-2022.

At the time of the AOA, the project’s re-baselined trigger parameters for additional governance intervention was agreed by IPDC. These triggers require an earlier return to DfT and HMT if breached at any stage to seek advice with regards to whether to continue with the project.

Value for money (VfM)

The VfM category of this project was assessed as ‘Medium’ with an adjusted benefit cost ratio (BCR) of 2.51. While a BCR of 2.5 would represent ‘High’ VfM, the VfM in this case is sensitive to the scale of landscape impacts and cost risk.

Feasibility

At the time of the AOA, the project which follows NHs’ Project Control Framework (PCF), was in the Development Phase (Stage 3). A PCF Stage Gate Assessment Review is held at the end of each PCF Stage, with Independent Assurance Reviews at set milestones.

The project entered the Infrastructure Project Authority’s (IPA) Government Major Projects Portfolio in 2020 to 2021 and is therefore subject to additional assurance mandated by the IPA. The first IPA led review held in December 2020 was to ensure the original OBC was clear, accurate and robust. The IPA review also tested the project’s schedule and delivery confidence and readiness to progress to the next stage. The scheme received an IPA amber/green rating.

Conclusion DfT AOA

Bernadette Kelly, Permanent Secretary, DfT:

As accounting officer, I am content for work to proceed on this project. This is an appropriate use of public money.

The assessment should be read alongside the updated outline business case. If factors affecting the value for money or affordability of the scheme change a further assessment will be made.

As a Tier 1 project, it will return to National Highway’s Investment Committee and to DfT IPDC earlier than scheduled if factors affecting the value for money of the project change. A further assessment will be made ahead of entering into any further financial commitments.

19 April 2022

National Highways AOA

Nick Harris, CEO National Highways:

As the accounting officer for National Highways, I considered this assessment of A417 ‘Missing link’ at Air Balloon.

I am content that this departmental minute summarises the key points. If any of these factors change materially during the lifetime of this project, I undertake to prepare a revised departmental minute summarising my assessment of them.

19 April 2022