Research and analysis

Value for Money (VfM) study on the governance and budgeting arrangements for mega projects

The conclusions of the study conducted by the Office for Value for Money (OVfM) on the governance and budgeting arrangements for mega projects

• From: HM Treasury
• Published: 19 June 2025
• Last updated: 24 April 2026 — See all updates

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Value for money study: governance and budgeting arrangements for mega projects

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Value for money study: governance and budgeting arrangements for mega projects

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This paper sets out the conclusions of the study conducted by the Office for Value for Money (OVfM), working in partnership with relevant government departments, on the governance and budgeting arrangements of mega projects. It includes the new bespoke approach to funding and governance that will be implemented for current and future mega projects.

Published 19 June 2025

Last updated 24 April 2026 + show all updates

1. 24 April 2026

   Correction needed to historic cost estimates for the HS2 programme. The 2019 prices equivalent of the upper bound estimate as per the 2014 David Higgins Review (anchored in 2011 prices) was indexed incorrectly. The value was overinflated by £4.4bn from £21.4bn in 2011 prices to £31.2bn in 2019 prices – this should have been inflated to £26.8bn in 2019 prices. This was a presentational error in the information provided by DfT to OVfM that had no material impact on the report as a whole.

2. 25 June 2025

   HTML accessible version added

3. 19 June 2025

   First published.