New hospitals programme set to fail, IPA warns


The New Hospital Programme has been rated as unachievable in the latest official audit of UK infrastructure.

In its annual review for the financial year 2023-24, the Infrastructure and Projects Authority (IPA) gave a red rating to the £20bn plan to build 40 new hospitals by 2030.

This means that the programme “appears to be unachievable” due to problems such as project definition, schedule, budget and quality that “do not appear to be manageable or resolvable”.

The programme received a green rating in last year’s report, meaning that the IPA thought successful delivery of the project in terms of time, budget and quality appeared “highly likely”.

Last year, a National Audit Office investigation said the scheme had not been good value for money up until that point.

A government review of the programme is due to be published this year.

The IPA also concluded that the HS2 high-speed rail scheme still has problems that may not be resolved.

Its report, published on Thursday (16 January), also gave HS2 phase one a red rating for the second consecutive year.

In a statement, a spokesperson for HS2 Ltd said: “We recognise that the programme faces serious challenges and our new CEO Mark Wild is now leading a comprehensive review which will be delivered to government later in the year.

“This will lead to a full reset of the project, ensuring that HS2 is delivered safely, efficiently and to the lowest reasonable cost.”

Other major construction or infrastructure projects received a red rating. These included the Nature for Climate Fund, the Replacement Analytical Project at Sellafield and the UK Holocaust Memorial.

Also in the classification were the Emergency Services Mobile Communications Programme and – for the third year running – the Public Health England Science Hub.

In addition, the Building Our Future Locations and Clyde Infrastructure programmes went from green to amber.

An amber rating signifies that a project’s delivery is feasible “but significant issues exist, requiring management attention”.

The £1.8bn His Majesty’s Naval Base (HMNB) Clyde Infrastructure Programme has been established to manage the design, delivery and transition into operational use of new-build and updated infrastructure facilities at HMNB Clyde, including berthing, waste management, training facilities and personnel accommodation.

Also rated red on the list – but not classified as infrastructure by the Cabinet Office – is the Manston Transformation Project. This will upgrade the current temporary infrastructure including buildings for processing people who arrive in the UK by small boat crossings.

A Home Office spokesperson said: “This government is working hard to review projects initiated under the previous administration, to ensure we are delivering impactful and cost effective projects to protect our borders and keep our streets safe.”

In a statement to Construction News, a Cabinet Office spokesperson said: “The ratings and data used in this report relate to the previous government.

“We are delivering our Plan for Change with investment and reform that will rebuild Britain as part of a decade of national renewal. From railways and roads, to energy and defence, we are committed to delivering exceptional public services for people across the country.”



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