Experts warn agreement needed and skills lacking in HMRC-led project
The UK’s major government projects experts have warned a programme to overhaul ERP systems in three central government departments is undeliverable in its current state.
Although named Unity, the £214 million ($276 million) shared services SAP-based ERP project, which is between tax collector HM Revenue & Customs (HMRC), Department for Transport (DfT) and Department for Levelling Up, Housing and Communities (DLUHC) Programme, has “a number of key design decisions outstanding, which all three departments must agree” for the project to remain on its critical path, according to information published alongside Infrastructure and Project Authority’s recent report [PDF].
“The programme also lacks a number of critical skills and dedicated resources, which further puts progress at risk,” it said.
The IPA – the government’s centre of expertise for infrastructure and major projects working across the Cabinet Office and HM Treasury – found that successful delivery of Unity to transform HR, finance and procurement across its three government departments “appears to be unachievable.”
According to the IPA’s definition of a red rating – which Unity received [PDF] – there may be “major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable”. This means the project “may need re-scoping and/or its overall viability reassessed.”
In information submitted to the IPA, HMRC, which leads the Unity project, said the programme costs for the 2022/23 financial year had fallen by 33 percent against the forecast because the outline business case was not approved until November 2023, “which was much later than anticipated and meant that the delivery phases of the programme were pushed back.
