Annetts key
Established Member
This is why these budget systems don't work. I've experienced the same. Not all the money for a year has been spent, or a project has not been finished. But in "two weeks" that money will disappear. So overtime and rest day working is thrown at the job to (a) use up the money (budget) before it disappears and (b) to make sure that the project / department doesn't come in under budget.And here you show perfectly why the current set-up disincentivises saving money. It's not limited to railways, my sector does this too. The most feared thing is a budget underspend, and if it looks like there could be money left over, ways are found to ensure every last penny is spent. If you don't, not only do you lose* the money you didn't spend this year, but it is cut from your budget for all future years.
It guarantees there will never be an underspend, while doing nothing to prevent an overspend.
*Usually this is expressed as "those insert expletive in central management will take our money away"
In more recent times, I've seen that the budget has been set far too low such that an overspend is predicted just three months into the year (that's financial year). So no surprise then, that at the end of the year, there's a massive overspend.
Such budget systems are not fit for use. Underspends should be rewarded not punished.
And the bean counters in the Treasury need dragging out of their offices to get their hands dirty in the real world of engineering (along with their lords and masters in Government, and I don't mean a day out for a photo opportunity). It's surprising what happens when a top level boss gets to see the real world (I've seen this, it actually resulted in some positive action that improved reliability on an important main line).
Shock! A politician / government / the Treasury changing the parameters of a project and then the costs change. NeverBy the sounds of it, Scotland has brought costs back to normal levels, but by applying methods that will never be allowed by the treasury (and politicians) in England, such as not repeatedly cancelling, reinstating, and redesigning project.
Interference or delays to projects / schemes is known to be a prime reason for increased costs. As is setting unrealistic budgets or expectations. Or not doing enough to find out how much it would cost before starting. Especially as companies that put in bids know all this ("if we tell them how much it will really cost, we won't win the bid" kind of thing). I believe there may be a Yes, Minister or Yes, Prime Minster episode on this very subject.