UK.gov decides tech projects worth billions are major but not 'mega'

Ministers concerned Treasury governance team may be distracted about supervising vital efforts

UK ministers have questioned the government's decision to seemingly downgrade huge public sector tech projects as HM Treasury takes a greater role in so-called "mega-projects."

UK major projects, including a string of nationally important tech roll-outs in central government, have in recent years been tracked by the Infrastructure and Projects Authority, a joint unit between the Treasury and Cabinet Office.

In April 2025, the Labour government, elected in July 2024, combined the IPA and the National Infrastructure Commission (NIC) to create the National Infrastructure and Service Transformation Authority, which is under Treasury control. Its planned role combines strategy and delivery of infrastructure as well as overseeing the implementation of the 10-year strategy.

At the same time, it has created a new definition of mega-projects — such as the much delayed HS2 high-speed rail plan – which was supposed to build a speedy line from London to the West Midlands – and the nuclear power building program. Digital transformation does not qualify as "mega" in this case.

Parliament's Public Accounts Committee (PAC) - a spending watchdog - has raised concerns that the new definition threatens to sideline "major" projects, more than 200 of which were previously tracked by the IPA in the Government Major Projects Portfolio (GMPP). In total, spending on these projects amounts to hundreds of billions of pounds.

"We noted that the concept of mega projects could take away from the proper supervision of major projects and asked how NISTA will have the bandwidth to be able to keep across all these major projects. NISTA told us that the GMPP projects are tiered and prioritized, with the prioritization reviewed quarterly," the report said.

The MPs on the PAC called on the Treasury to set out what it and NISTA will be doing to improve governance and assurance of all major projects in the future, particularly at a departmental level.

The GMPP includes a number of high-profile IT projects which are critical to the continued functioning of government. They include an overhaul of ERP system across nearly ever central government department which has already been hit by delays. For example, the £500 million ERP replacement project for national tax collecter His Majesty's Revenue & Customs was already rated "red" on the IPA's risk list. It is one of five such projects involving nearly all governmental departments.

Other major projects tracked by the IPA include the replacement of the NHS finance system responsible for funneling taxpayers' money into the health service and the Home Office's case management system for asylum seekers.

The Register has asked HM Treasury to comment. ®