Public Accounts Committee Calls £3 Billion Overspend on Major Capital Projects Here 'Unacceptable'

In a new report published today, the Assembly’s Public Accounts Committee (PAC) has said the delays and overspends on major capital projects here are ‘unacceptable’.

The Committee has also queried why a series of recommendations it made in a report five years ago has not been fully implemented. 

‘Major capital projects’ are defined as those estimated to cost in excess of £25 million. Many involve major construction work including the Belfast Maternity and Children’s Hospital; the A5 and A6 and the Belfast Transport Hub.

Daniel McCrossan, chair of the Public Accounts Committee said: “Our follow-up work in this area was prompted by a Northern Ireland Audit Office (NIAO) report in early 2024 which said delays in current projects meant they could cost £2.45 billion more to complete than originally estimated.*  An updated position from NIAO last summer showed that the overspend has continued to rise and is now more than £3 billion** over original budgets - an escalation that is simply unsustainable.

“The Committee has been raising concerns in this area for years.  In 2020, our initial ‘Report on Major Capital Projects’ made 15 recommendations for improvement, relating to accountability mechanisms as well as time*** and cost overruns.  A number of those recommendations have not progressed as the Committee intended, and not all recommendations were accepted.

“Having revisited the Major Capital Projects Inquiry in September 2024, we have heard a lot in evidence sessions about ongoing, planned actions and future aspirations – but little in the way of real progress and how these projects could be delivered more efficiently and effectively. The Committee is extremely frustrated by the lack of action taken to address delays and overspends. 

“Since last Autumn, the Committee has heard from Jayne Brady, Head of the Northern Ireland Civil Service as well as senior officials from the Department of Finance; the Strategic Investment Board; the NICS Board and the Northern Ireland Audit Office. We have now made a further 12 recommendations to address the urgent and serious ongoing issues and resolve the root causes.” 

Cheryl Brownlee, deputy chair of the Public Accounts Committee continued: “Our view is that the current arrangements for delivering major capital projects are not fit for purpose and that the establishment of an independent oversight body in Northern Ireland must be considered. A review of leadership and governance is also urgently required. We also want to see an annual progress report published on the delivery of all major capital projects – and that the Department of Finance takes the lead role in monitoring this.

“Regrettably, the Committee is also repeating its recommendation that NICS urgently addresses the lack of professional and technical skills - to ensure project teams have the necessary capacity and capability to successfully deliver major capital projects.”

Ends

For further information please contact:

Felicity Templeton,
Communications Office,
Northern Ireland Assembly
felicity.templeton@niassembly.gov.uk
07977 635930

Notes to editors

*Major Capital Projects - Follow-up Report | Northern Ireland Audit Office (2024)

**A portfolio of 78 projects, with an original approved cost of £5.71 billion is now estimated to cost £8.74 billion. (See paragraph 33 PAC’s Report on Major Capital Projects: Follow-up Report (2025))

*** In 2015, the Northern Ireland Executive identified seven flagship infrastructure projects as its highest priority projects which were allocated funding over a five-year period, rather than the usual single year budget allocation. At the time of the 2024 NIAO report, only one of the flagship projects had been fully completed, with a second completed by the time of this PAC report.

•  PAC’s Report on Major Capital Projects: Follow-up Report (2025) can be found here

• The Inquiry into Major Capital Projects was the Committee’s fourth - and further information on it including minutes of proceedings and evidence, as well as correspondence and other reports can be found here: Inquiry into Major Capital Projects

• PAC’s Report on Major Capital Projects (2020) can be found here

• The Public Accounts Committee (PAC) is a Standing Committee. It is PAC’s statutory function to consider the accounts, and reports on accounts laid before the Assembly. Further information on the Committee Membership, its work and remit can be found here