Previous efficiency programmes have over-promised and under-delivered. ‘Optimism bias’ is a long-standing problem within government where project plans are impractical and unrealistic, and do not always achieve the expected objectives. We have seen this across a range of programmes, such as Shared Service Centres and, more recently, the Defence Equipment Plan 2020–2030. These problems occur due to poor data on costs and performance, but also because departments and central government do not c...

Previous efficiency programmes have over-promised and under-delivered. ‘Optimism bias’ is a long-standing problem within government where project plans are impractical and unrealistic, and do not always achieve the expected objectives. We have seen this across a range of programmes, such as Shared Service Centres and, more recently, the Defence Equipment Plan 2020–2030. These problems occur due to poor data on costs and performance, but also because departments and central government do not consistently challenge existing plans. The Treasury and Cabinet Office told us that “test-and-learn pilots” gather programme data to give departments 6 Ef Type: conclusion | Number: 3 | Response status: accepted Government response: The government agrees with the Committee’s recommendation. Recommendation implemented HM Treasury recognises the need to underpin the planned efficiencies and savings agreed through SR21 with departmental plans for delivery. SR21 confirmed savings of 5% against day-to-