The government says the £12bn National Programme for NHS IT (NPfIT) is making progress, despite a stinging report from MPs that questions if it will ever be a success.

The Public Accounts Committee (PAC) report published on Tuesday points to supplier problems and major delays in developing electronic health records at the heart of the scheme.

It questions the overall price of the programme and calls on the Department of Health (DH) to produce an annual statement outlining the costs and benefits.

The report also criticises the central programme’s engagement with NHS staff and recommends the involvement of a larger number of software suppliers to offset the delays.

‘There is a question mark hanging over the National Programme – urgent remedial action is needed if the long-term interests of patients and taxpayers are to be protected,’ said PAC chairman Edward Leigh.

‘The programme is not looking good: the electronic record is two years late, suppliers are struggling to deliver, scepticism is rife among clinicians and the costs and benefits for the local NHS are unclear,’ he said.

But the government says that the PAC is relying on out-of-date evidence and is ignoring the considerable progress that has been made in the past year, including rollout of the N3 broadband network, electronic X-ray systems and multiple initiatives to address the lack of clinical involvement and local control.

Health minister Lord Hunt also says the costs of the programme remain unchanged.

‘Costs have not escalated. In fact, the National Audit Office acknowledged that costs were under control and the strength of the third-party contracts means that payment is not made until systems are delivered, which protects the taxpayer,’ he said.