The Department for Transport (DfT) has denied misleading its own ministers about the worsening value for money of the Lower Thames Crossing (LTC) after it used figures that were two years out of date in its accounting assessment.
Anti-LTC campaigners accused civil servants and National Highways of misleading ministers about the business case for the planned £9bn tunnel under the Thames by using older, more positive business case figures rather than the latest assessments.
Thames Crossing Action Group (TCAG) pointed out that a new Accounting Officer Assessment (AOA) for the scheme cites a Benefit Cost Ratio (BCR) of 1.46, whereas the most recent assessment by National Highways shows the BCR for the scheme has shrunk to 1.22.
TCAG said it had written to the DfT in November and then to the chair of the Public Accounts Committee (PAC) and the Treasury officer of accounts in December highlighting that the AOA for the LTC had not been published.
The AOA, published last week, was signed by National Highways chief executive Nick Harris and the Department for Transport's (DfT) permanent secretary, Bernadette Kelly last October and November respectively.
TCAG pointed out that the BCR of 1.46 is based on the Outline Business Case (OBC) for the scheme, which has not been updated since 2020, while the scheme’s October 2022 Combined Modelling and Appraisal Report, submitted as part of National Highways’ development consent order (DCO) application, gives the lower BCR figure.
The group added that a recent report from the PAC had highlighted the failure of government departments to produce adequate AOAs.
TCAG chair Laura Blake said: ‘When it comes to decisions about spending huge amounts of taxpayers’ money, ministers should have adequate, accurate, and up-to-date info. Clearly, this is not the case with the proposed £10bn+ Lower Thames Crossing.
‘It is disgraceful that misleading info is being signed off and presented to ministers for a project that is neither fit for purpose nor value for money.’
The DfT said TCAG's claims were 'inaccurate' and that ministers continue to be updated on the project’s potential cost, benefits and value for money and have been notified of its most recent BCR.
It added that the BCR in the AOA forms part of the last formal investment decision for the project, which will continue to be reviewed if factors including the value for money of the scheme change.
The scheme is also reliant on the successful outcome of the DCO application and the Government’s final funding and investment decisions.
In November, the head of the National Audit Office called on ministers to rethink whether projects like the LTC and the £2.4bn A303 Stonehenge scheme, both low value for money, remain 'feasible'.
