Summary
The difference between the estimated cost of new roads and how much it eventually costs, or is now expected to cost, would be much higher but for a change by the Treasury in calculating estimates.
Introduced in 2003, the change means that VAT, inflation and an "optimism" bias have to be factored into estimates.See the full content of this document
Extract
Politics: Costs On the Road to Nowhere
Optimism bias is a tendency of those appraising a new projec...
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