Project delivery functions to be transferred from Cabinet Office to the Treasury

The merger of the National Infrastructure Commission (NIC) and Infrastructure and Projects Authority (IPA) will take effect from the start of April, the prime minister has announced.

The combined body, which will be known as the National Infrastructure and Service Transformation Authority (NISTA), will be a joint unit of the Treasury and Cabinet Office, with Darren Jones named as the responsible minister for the body.

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Source: HM Treasury / Flickr

Chief secretary to the Treasury, Darren Jones

Jones, a rising star in the Labour party who is second in command at the Treasury after chancellor Rachel Reeves, has been at the forefront of the government鈥檚 plans for infrastructure and first announced the plans for NISTA last May, before the general election.

In a written statement to the House of Commons, Keir Starmer announced the upcoming 鈥渕achinery of government change鈥.

鈥淭his change will bring infrastructure strategy and delivery together to address systemic challenges to growth, and combine the expertise and functions of the Infrastructure and Projects Authority and the National Infrastructure Commission,鈥 he said.

As part of the changes, the IPA鈥檚 functions and responsibilities, including the Government鈥檚 project delivery expertise and functions, and assurance reviews for the Government鈥檚 largest projects, will moved from the Cabinet Office to HM Treasury.

The chief secretary to the Treasury, currently Jones, will be the lead minister for NISTA, while the department鈥檚 permanent secretary will be the principal accounting officer.

Last September, Jones hit out at the previous government for having a dismissive attitude towards the NIC.

Speaking at the launch of the Labour Infrastructure Forum, he said the NIC had done a 鈥渂rilliant job鈥 but the Conservatives were 鈥渘ot really listening or taking it seriously鈥.

鈥淭he NIC was doing a brilliant job on strategy,鈥 he said.

鈥淚 think everybody agrees that their outputs are actually great, but let鈥檚 be frank, the government wasn鈥檛 really listening or taking it seriously. So it produced great reports but it wasn鈥檛 informing decisions.鈥

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He also argued that the IPA had also been reduced to a 鈥渃ompliance function鈥 and it needed to be 鈥渕ore about speeding up delivery and focusing on delivery鈥.

The chair of the NIC, John Armitt, recently questioned the benefits of greater ministerial oversight of major public projects. 

Speaking at a House of Commons transport committe, he said that 鈥渢ransport is an intensely political area鈥 which he said made it 鈥渧ery difficult for ministers to stand back鈥.

鈥淭hey鈥檙e the ones who, at the end of the day, have to stand up here and defend what鈥檚 happening,鈥 he said.

鈥淥n the other hand, that is bound to lead to delays, it鈥檚 bound to lead, I fear at times, to too much desire to actually meet every concern and objection and requirement for extra facilities within a scheme.