The NAO reported that DfT aims to spend 拢1.1bn on innovation between 2022/23 and 2029/30, focused on projects including maritime decarbonisation and sustainable aviation fuel. But, the office says, it must establish a clearer risk appetite to guide its decisions and provide better support to bring concepts into practical use.
A new report, , by the independent public spending watchdog finds that DfT does not have a strong process for prioritising its innovation funding to support its three departmental priorities.聽In comparison, DfT鈥檚 three highest-spending arm鈥檚-length bodies, Network Rail, National Highways and HS2 Ltd, have clearer processes for prioritising and managing their respective portfolios. DfT also has limited strategic oversight of its innovation activity, leading to potential missed opportunities for coordination across different modes of transport.
DfT has not, NAO, set out a clear risk appetite to guide its decisions to invest in innovation. Doing so would help it decide what level and types of risk to take in its projects and manage high-risk activity.
Gareth Davies, head of the NAO, said, "DfT has taken positive steps to raise the profile of innovation within the department and widen the type of interventions it makes in this area. To achieve good value for money, DfT should better define how its innovation activity can help deliver its priorities鈥攊ncluding clarifying how much risk it is willing to take鈥攁s well as collect the data it needs to manage and assess this activity.鈥�
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