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BIS Government Major Project Portfolio data, September 2014 (CSV)

Updated 25 June 2015
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Project name BIS Shared Services Business Bank Project Further Education 24+ Learning Loans Programme ICR Monetisation Project Eagle (formerly Urenco Future Options) SLC Transformation Programme The Francis Crick Institute (formerly UKCMRI)
Department BIS BIS BIS BIS BIS BIS BIS
MPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) Amber Amber/Green Amber/Green Amber Amber/Red Amber/Red Amber/Green
Description / Aims (From GMPP data) A shared service solution for the BIS network will: deliver a structural reduction in the cost base; provide simpler, transparent and more integrated processes across the BIS family of organisations; and secure continuous cost and process improvement through innovation and the application of a professional business focus. It can underpin strategic management of BIS and its partners with timely, accurate, valued and well-aligned financial management information. In September 2012 the Government announced the creation of a business bank to address long-standing structural gaps in the supply of finance to SMEs and mid-sized corporates. The bank, which has been allocated £1bn of Government funding, will be tasked with supporting the development of diverse finance markets for business, tackling market failures in the provision of finance, and ensuring that businesses are aware of and can access the support provided by Government. The new institution will operate through the wholesale markets in order to unlock institutional investment to benefit small to medium sized businesses; it will not have any retail presence. Rather, it will facilitate the provision of loans, including long-term patient capital, to UK firms through banks and other financial institutions. The 'Business Bank' will be the single public identity and centre of expertise in government on all commercially-minded finance schemes for small and mid-sized businesses. These services will be managed as a single portfolio with operational and budget flexibility. The bank will commercially-focused, employing finance, investment, business and public sector professionals to pool the expertise of the relevant markets and efficiently build up and manage the bank's operations. It will be able to determine its own priorities, subject to high level objectives, budgets and operating principles set by Ministers. The 'Business Bank' will not seek to replace or compete with existing and future finance providers, but rather to ensure that there is a greater range of providers and products on offer to businesses. To Introduce loans for those aged 24 or over, undertaking provision at Level 3 and above from 2013/2014. The project will allow savings to be realised through the conversion of grant to loan funding while still allowing access to advanced and higher level provision . Introduction of loans should put greater power into the hands of learners, creating a more responsive system. System should be simple and non-bureaucratic , representing good value for money and making use of Higher Education (HE) infrastructure to minimise disruption and facilitate progression. HM Government is carrying out a programme of asset sales with the purpose of reducing Public Sector Net Debt (“PSND”). The Government has announced intentions to sell the pre-Browne Income Contingent Repayment (ICR) student loan book to contribute to this objective and to realise value to the taxpayer. This loan book will be sold in a series of tranches over a number of years. The first tranche of loans is expected to be sold by 2015-16. As is normal with transactions of this type, there will be a value for money assessment made before each sale. Each sale is required to meet the value for money assessment as well as other key project objectives to be considered a success. Failure to meet objectives will result in a decision not to sell. The Government has adopted a policy of asset disposal where there is no longer a good case in public policy terms for continued public ownership. On that basis, the Department of Energy and Climate Change (DECC), with commercial advice and support from the Shareholder Executive, was mandated by Number 10 to take forward preparations for a sale of HMG’s one-third shareholding in Urenco, a uranium enrichment company. A sale could realise significant proceeds. The project was transferred to BIS (in the Shareholder Executive) through a Machinery of Government change in February 2013. The objectives of the programme are: • Introduce a modern, integrated and flexible IT system to enable the safe delivery of HE reform (including changes to borrowers’ repayment terms including variable interest rates); • Enhance customer service and operational efficiency; and • Support the transformation of SLC’s business through introduction of a unified technology platform and the standardisation of processes. The Francis Crick Institute (formerly UKCMRI) is a joint venture between the UK's largest biomedical research and academic institutions: The Medical Research Council (MRC), Cancer Research UK (CRUK), the Wellcome Trust, University College London, Kings College, London and Imperial College, London. A new research Institution will be established involving the construction of a new facility located close to St Pancras station, London. This facility will accommodate 1,268 scientists when fully operational. The National Institute for Medical Research (NIMR) will be closed. This NIMR site at Mill Hill and the National Temperance Hospital site will be disposed of as part of this project. The project aims are: Sustain UK's position as a leader in biomedical research; Engagement with the most challenging research questions; Be on a scale to compete with major new overseas developments; Promote the health of the public and wider UK economy; Address key concerns of 2006 Cooksey review on publicly-funded healthcare research; Excellent training environment for biomedical research.
Departmental commentary on actions planned or taken on the MPA RAG rating. The Amber status reflects the challenges faced with the continued movement of partner organisations within this period (Green Investment Bank and British Business Bank). There has been significant development and progress of a HR resource plan, Transfer of Undertakings of Employment (TUPE) plan, a comprehensive transition plan and the Go-Live Schedule which tracks critical systems. In addition there was senior engagement at Chief Executive Officer (CEO) and Chief Financial Officer (CFO) levels with suppliers to ensure the integrity of the Finance, HR and Payroll systems ahead of go-live. There has also been an increase in the capacity and capability in the Finance function. A growth plan for loans was agreed to address the risk of underspend in the budget. The key activity of the growth plan was to expand the provider base, inviting expressions of interest in having a loans facility and explaining the requirements that would need to be met. This brought new providers into the loans system. The inclusion of key words around 'funding advice' in the National Careers Service national campaign in summer 2014 led to an increase in the number of people viewing the 24+ Advanced Learning Loans page on the National Careers Service. We know from our evaluation that loans are understood and learners are happy to take them on. However, wider changes in the Further Education sector may be impacting on the take-up of 24+ Advanced Learning Loans. Work is on-going to inform Government’s decision on a potential first sale from the loan book but there are no plans for a sale in this Parliament. The sale of HMG's stake in Urenco has material risks which ultimately lie outside the control of HMG. A/R RAG remains appropriate based on the key project risks that remain and the volume of work yet to be completed. Following a review of the programme the Board approved a re-set. Action was initiated to revise the Roadmap, Business Case and benefits realisation plan. Governance has been reshaped. The numerous workstrands continue including the Crossrail 2 planning, the marketing of surplus sites, the due diligence and planning for legal launch.
Project - Start Date (Latest approved start date) 04/05/2011 24/09/2012 30/11/2010 01/03/2010 01/02/2010 19/03/2012 01/10/2006
Project - End Date (Latest approved end date) 01/04/2015 01/11/2014 31/10/2013 31/12/2018 01/10/2015 31/03/2017 21/12/2017
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The initial programme is to close in October 2014. The BBB is forecast to go live on as an operationally independent, Government-owned financial institution on 1 November 2014 achieving a major milestone. They are now based on separate premises and are subject to agreed Corporate Governance Frameworks, with ShEx providing Shareholder oversight. The project was closed in October 2013 as planned and is now in Business as Usual running and a Gate 5 review is being planned. Work is on-going to inform Government’s decision on a potential first sale from the loan book but there are no plans for a sale in this Parliament As noted above the timeline may be delayed as it depends on external factors. As a result of the changed priorities in the reset programme, planned schedule, benefits and costs will be impacted In conjunction with all JV partners it was agreed to extend the construction contract completion date to November 2015 to enable the Building Contractor to undertake science related accommodation changes. There was no adjustment to the project completion date. This was more economical than undergoing post completion works. The MRC funding requirements and construction budget for the Crick remains the same.
2014/2015 Budget (£million) £1.90m £312.00m £242.66m £6.96m £5.30m £46.29m £18.00m
2014/2015 Forecast (£million) £1.90m £322.40m £122.55m £3.88m £3.65m £46.46m £18.00m
2014/2015 Variance (£million) £0.00m £10.40m -£120.11m -£3.08m -£1.65m £0.17m £0.00m
2014/2015 Variance %age 0% 3% -49% -44% -31% 0% 0%
Total budgeted whole life costs (£million) (including non-government costs) £26.19m £495.70m £303.00m £29.48m £23.73m £139.13m £753.00m
Departmental narrative on budget/forecast variance for 2014/15 (if variance is more than 5%) n/a n/a There has not been the increased take up in the second year of delivery as anticipated. Due to this budgets and forecasts have reduced significantly during 2014-15. The project will spend less than originally forecast in 2014/15 due to the Ministerial decision not to proceed with the sale this year. 14/15 forecast represents the estimated cost of administering the sales process, including use of expert advisers for the FY14/15 year. n/a n/a
Departmental narrative on budgeted whole life costs Data not provided by department The forecast cost for this project include: Operational costs (running BBB programmes whilst in BIS, interim structure and set up of BBB); SULCo and financial guarantees; and all other BBB programmes e.g. Business Finance Partnership (BFP), Enterprise Capital Funds (ECF), Investment programme. For the reasons explained above, the total forecast whole life cost budget is now £164.93m Data not provided by department Whole life costs represent the cumulative total of the annual allocated budgets for administering the sales process, including the use of external advisers. The actual spend to date may be materially lower, as a significant portion of each year's allocated budgets may be unused, and consequently rolled over. The Whole Life Costs will be updated through formal change control following the approval of the revised Business Case. The Whole Life Costs represent the total construction costs including the contributions from all the participants.