Corporate report

Accounting Officer Assessment Summary: HMRC Infrastructure Programme

Published 1 June 2021

It is normal practice for Accounting Officers to scrutinise significant policy proposals or plans of major projects, and then assess whether they measure up to the standards set out in Managing Public Money.

From April 2017, the government has committed to make a summary of the key points from these assessments available to Parliament when an Accounting Officer has agreed an assessment of projects within the Government Major Projects Portfolio (GMPP).

Background and context

The Infrastructure Programme is working across government to deliver and operate a network of Inland Border Facilities (IBF) to provide Customs checks, Border Control Posts and traffic management solutions, to maintain the flow of goods with the EU, now the UK has left the Customs Union and Single Market.

These IBFs are predominantly to support strategic crossings (Eurotunnel, Dover and Holyhead), where they do not have the practical ability to accommodate the checks on port.

The Infrastructure Programme is delivering IBF in 2 releases with Release 1 successfully delivered on 31 December 2020 following the end of the Transition Period.

The 11 IBFs delivered included Warrington, Birmingham Airport, Manston Airport, Ebbsfleet International, Ashford Waterbrook, North Weald, Stop 24, Dover Western Dock and 2 lite sites at Rotherham and Rugby. All 11 IBFs are fully operational.

Release 2 will be delivering a new Inland Border Facility in North Wales to serve the port of Holyhead and enhancements to Sevington.

The programme adheres to HM Treasury’s Managing Public Money guidance. The programme has been awarded GMPP status and has completed Q2 and 3 reporting for 2020 to 2021 in accordance with the GMPP timeframes.

Clear governance processes have been established between internal stakeholders and these will continue to drive both programme management and funding. As part of GMPP the programme will report quarterly to the GMPP Portfolio Office on progress and utilise the Infrastructure Project Authority programme assurance.

Regularity

The programme is part of HMRC’s work to implement the EU Withdrawal Agreement Act 2020 and ensure the UK complies with the requirements under the Free Trade Cooperation and Common Transit Convention (CTC).

The programme does not require any additional legislation and complies with Parliamentary requirements for the control of expenditure, with programme funds being applied only to the extent and for the purposes authorised by Parliament. The programme spend has received relevant HM Treasury approvals.

Propriety

The programme continues to comply with Parliamentary requirements for the control of expenditure, with funds being applied only to the extent and for the purposes authorised by Parliament.

Value for money

Value for money has been assessed in an options appraisal in the programme business case. Several suitable sites were identified, and these were assessed against set criteria which included proximity to the port, traffic volume, deliverability, costs, etc. before selecting best suitable sites.

The government has committed to providing support to UK traders by providing Inland Border Facilities to offer ATA Carnet, offices of transit, offices of destination and Departure services where Port Authorities are unable to provide border facilities and ensuring the flow of imports and exports between UK/EU border.

Supporting the continued flow of trade will support the UK economy and by facilitating trade with the EU. Therefore, based on the benefit to the wider economy and given this is a priority for government, I deem this expenditure to be value for money.

To secure value for money, contracts for current site operators were procured through competitive tender process under an open procurement exercise carried out in accordance with public procurement rules. Leases and contracts have been negotiated to provide an appropriate level of security and the flexibility to exit affordably.

The Inland Border Facilities are also of a temporary nature, as the longer-term expectation is that most CTC demand will be met by the commercial sector over time. HMRC will monitor usage of the IBFs to support decisions on the continued need for each site.

In addition, there will be parking charges for HGV drivers who remain on the sites for an extended period and for unloading/loading vehicles. These charges will be administered by the site operators and paid to HMRC to off-set against operating costs.

Feasibility

The programme procured external contractors to lead on site designs and construction, provide advice and services on project and costs management, site operation and facilities management.

The programme leadership, supported by delivery partners, has the skills and experience needed to achieve the project deliverables within the required timeframe. The initial 11 Inland Border Facilities went live from 1 January 2021 and will provide full CTC and transit services to UK importers and exporters.

The site for North Wales is pending Ministers’ decision and is scheduled to complete before end of staged customs controls in January 2022.

The programme is subject to the requirements of the GMPP and is subject to review by the Infrastructure and Projects Authority (IPA). The programme was assessed in an IPA gateway review in October and December 2020, which provided an independent view regarding feasibility. Further IPA review is planned in May/June 2021.

Conclusion

As the Accounting Officer for HMRC, I have considered the programme and assessed the proposal as value for money and deliverable. Consequently, I have approved it as of 4 May 2021. I have prepared this summary to set out the key points which informed my decision.

If any of these factors change materially during the lifetime of this programme, I undertake to prepare a revised summary, setting out my assessment of them. This summary will be published on the government’s website (GOV.UK). Copies will be deposited in the Library of the House of Commons and sent to the Comptroller and Auditor General and Treasury Officer of Accounts.

Accounting Officer’s name: Jim Harra, First Permanent Secretary and Chief Executive, HM Revenue and Customs.

Date of signing: 4 May 2021