Transparency data

Northern Powerhouse Rail programme SRO appointment letter

Updated 20 February 2024

Sender

Bernadette Kelly, Permanent Secretary of Department for Transport

Nick Smallwood, Chief Executive Officer of the Infrastructure and Projects Authority

Recipient

Nick Bisson, Senior Responsible Owner for the Northern Powerhouse Rail Programme

Letter

27 January 2023

Dear Nick,

Subject: Appointment as Senior Responsible Owner for the Northern Powerhouse Rail programme

We are writing to confirm your continued appointment as Senior Responsible Owner (SRO) of the Northern Powerhouse Rail (NPR) Programme which you started on 1st April 2020. This letter sets out your responsibilities and the support you can expect from your department and the Infrastructure and Projects Authority.

As SRO, you are directly accountable to David Hughes, Director General, Rail Infrastructure Group under the oversight of the Permanent Secretary as accounting officer for Department for Transport (DfT) and the Secretary of State.

Your programme forms part of the DfT’s tier 1 portfolio under the oversight of the Chair of the Investment Portfolio and Delivery Committee (IPDC) and are included in the Government Major Projects Portfolio (GMPP).

You have personal responsibility for the delivery of the various elements of the programme as defined and will be held accountable for the delivery of its objectives, with policy intent and outcomes expected. This encompasses securing and protecting its vision, ensuring that it is governed responsibly, reported on honestly, escalated appropriately and for influencing the context, culture, and operating environment of the programme. You are also responsible for ensuring the ongoing viability of the programme and recommending its pause or termination if appropriate. Where issues arise which you are unable to resolve, you are responsible for escalating these to IPDC.

You remain accountable to ministers, as set out in the Civil Service code, and should deliver the project in accordance with the objectives and policy intent as set by ministers.

In addition to your internal accountabilities, SROs for GMPP projects and programmes are personally accountable to Parliamentary select committees. This means that, from the date of your original appointment, you have been held personally accountable to and could be called by select committees to account for and explain the decisions and actions you have taken to deliver the Northern Powerhouse Rail programme.

It is important to be clear that your accountability relates only to implementation, within the agreed terms in this letter; it will remain for the minister to account for the relevant policy decisions and development.

More information on this is set out in Giving Evidence to Select Committees - Guidance for Civil Servants, sometimes known as the Osmotherly Rules. Information on the roles and responsibilities of the SRO are detailed in the Infrastructure and Project Authority’s guidance on the role of the Senior Responsible Owner. You should also make yourself familiar with the Government functional standard for project delivery, the requirements of the government project delivery framework, and the guidance and requirements for project delivery as set by DfT’s Central Portfolio Office and PD COE.

Time commitment and tenure

This role will require 50% of your time to enable effective delivery of the role and execute your responsibilities in full.

You are required to undertake this role until achievement of the NPR strategic outline business case, planned publication in 2023. Progress towards this will be reflected in your personal objectives. Any changes to the agreed time commitment or tenure of the role, as set out above, will require both departmental and Infrastructure and Projects Authority consent.

Objectives and performance criteria

The policy intent supported by this programme is to deliver improved rail connectivity between the main cities of the North of England and other significant economic areas, through a potential combination of new lines, upgrades to existing lines and other infrastructure interventions on the existing rail network and HS2 network.

Any proposed changes to scope which impacts on this intent or the realisation of benefits must be authorised by IPDC and may be subject to further levels of approval.

The vision for the programme is to help transform the economy of the North of England by significantly improving the connectivity, capacity, frequency, reliability and resilience of rail links between the region’s main economic centres. The objectives for this vision are:

• to enhance rail connectivity between key economic areas of the North of England, bringing northern cities closer together through a combination of increased capacity, more frequent services and shorter journey times
• to release capacity on the existing rail network and utilise spare capacity on the HS2 network
• to grow and level up the economy by creating opportunities for skills, employment, agglomeration and regeneration

It is recognised that passenger services are directly accountable for the timetable and rolling stock decisions which will realise the benefits of the programme through their governance structures.

Your personal objectives and performance criteria which relate to the programme are:

• to deliver the programme as confirmed in the Integrated Rail Plan, with the SOBC expected to be published in 2023

You are expected to run your project in accordance with the Government functional standard for project delivery, the other functional standards as applicable to this programme and the requirements of the government project delivery framework.

Extent and limit of accountability

Finance and Controls

HM Treasury spending controls will apply on the basis set out within the department’s delegated authority letter. Where the programme exceeds the delegated authority set by HM Treasury, the Treasury approval point process will apply, and the details of each approval process must be agreed with your HM Treasury spending team. You should consult departmental finance colleagues on how to go about this.

You should note that where expenditure is considered novel, contentious, repercussive, or likely to result in costs to other parts of the public sector, HM Treasury approval will be required, regardless of whether the programme expenditure exceeds the delegated authority set by HM Treasury. If in doubt about whether approval is required you should, in the first instance, consult departmental finance colleagues before raising with the relevant HM Treasury spending team.

The overall estimated budget, resourcing requirements and tolerances for your project/programme will be agreed as part of the approval process. You will be expected to deliver within these tolerances and report quarterly on these as part of GMPP reporting.

You should operate at all times within the rules set out in Managing public money. In addition, you must be mindful of, and act in accordance with, the specific HM Treasury delegated limits and Cabinet Office controls relevant to the programme. Information on these controls can be found here: Cabinet Office controls.

Delegated authority

The programme budget is managed at a portfolio level and SROs are remitted funding in line with the Rail Network Enhancements Pipeline (RNEP) policy and is governed by the enhancement portfolio board and where relevant DfT’s tier 1 investment board.

You are responsible for:

• agreeing with the enhancement portfolio board and the relevant DfT investment board project funding at each investment decision gateway
• agreeing with the enhancement portfolio board and the relevant DfT investment board any changes to your remit, including changes to funding, schedule or scope
• recommending to the enhancement portfolio board and the relevant DfT investment board the need to pause, delay or terminate the programme where necessary and in a timely manner

All taskings of HS2 Ltd are to be issued via the HS2 sponsor board.

Where issues arise which take you outside of these authority limits which you are unable to resolve, you are responsible for escalating these issues to the enhancement portfolio board and/or where relevant a DfT investment board including IPDC.

Appointments

You have appointed two full time programme directors to support you in the management of these programmes and make other appointments as required for the control and delivery of your programme within your delegated authority.

Governance and assurance

You should pay attention to ensuring effective governance for your programme, including the establishment of a programme board with appropriate membership and clear terms of reference.

As primary owner, you must ensure that the programme secure business case approval from IPDC including CO and HMT. You should also ensure that the programme remains aligned to the strategic outcomes, costs, timescales, and benefits in line with the approved business case as well as monitoring the context within which the programme is being delivered to ensure it remains valid.

Where a change impacts the scope, costs, benefits, or planned delivery milestones agreed as part of an agreed business case, you are responsible for following the agreed change request approval process and setting a new, approved, business case baseline.

You should ensure that an accounting officer assessment is completed alongside the approval of the outline business case and that this is published on GOV.UK as part of the government’s transparency requirements on major projects. You are responsible for bringing to the attention of the accounting officer any material changes in the programme which could require a new accounting officer assessment to be completed and published. Guidance on completing accounting officer assessments for major projects is available from HM Treasury.

Although you are directly accountable for this programme you are also expected to support delivery of the department’s overall strategic objectives. This means that you are expected to work collaboratively with passenger services and other SROs and project directors in adjacent projects and programmes and with the RNEP portfolio management office and portfolio director to manage dependencies, resources, schedules, and funding to support delivery of the overall change the department needs to achieve its strategic objectives.

You should ensure that appropriate and proportionate assurance is in place and agree on the level and frequency of assurance reviews through the maintenance of an integrated assurance and approvals plan. You should develop this plan and its maintenance in collaboration with the Departmental Assurance Coordinator and the Infrastructure and Projects Authority.

Programme status, reporting and transparency requirements

The programme status at the date of your appointment is reflected in the most recent quarterly return on the programme to the Infrastructure and Projects Authority and is the agreed position as you assume formal ownership of the programme.

You are responsible for ensuring the honest and timely reporting on the position of the programme to the Infrastructure and Projects Authority while it remains on the GMPP and for providing reports and information to the department’s Major Project Portfolio Office as required. Where relevant, reporting should include carbon measurement, and other sustainable development goals demonstrating evidence that the project contributes to an overarching environmental strategy and is aligned with defined net zero pathways. Information on the programme will be published annually by the Infrastructure and Projects Authority.

As part of the government’s commitment to transparency on major infrastructure projects, you are responsible for publishing on GOV.UK:

• a summary of the accounting office assessment completed in line with the approval of required business cases and summaries of any subsequent assessments should they be required
• a summary of the HM Treasury approved full business case
• a close out report after the programme has completed

Development and support

As a graduate of the Major Projects Leadership Academy, you are expected to maintain your continuing professional development as a project leader, including your status as an accredited assurance reviewer. To maintain your accreditation, you will be required to participate in a review at least once every 12 months.

The department will assist you in securing the necessary resources to support the programme, and will set clear guidance, requirements and standards, which align to the Government functional standard on project delivery, to enable good governance and effective delivery. You will be part of the department’s cohort of major project leaders who will be expected to support each other, share good practice and lessons learned and to collectively develop solutions. You should liaise with the department’s Head of Profession for project delivery to discuss the maintenance and development of your delivery and leadership skills.

The Infrastructure and Projects Authority will be available to you for support, advice, and assurance throughout the programme’s time on the GMPP.

Following entry onto the department’s tier 1 Portfolio, the IPDC will provide ongoing oversight and support and will take steps to help resolve and escalate risks, issues or constraints that are acting as a blocker to successful delivery.

We would like to take this opportunity to wish you every success in your continued role as SRO.

Yours sincerely,

[Signed]

Dame Bernadette Kelly DCB

Permanent Secretary, Department for Transport

[Signed]

Nick Smallwood

Chief Executive Officer, Infrastructure and Projects Authority

Confirmation of acceptance of appointment

I confirm that I accept the appointment of Senior Responsible Owner for the Northern Powerhouse Rail Programme, including my personal accountability for implementation, as set out in the letter above.

[Signed]

Nick Bisson

27 January 2023