HMRC's project to create its 'One Click' tax service for businesses has been identified as one of 89 major government projects which risk going off the rails, according to a Cabinet Office review.

The Major Project Authority (MPA) has published its first review of around 200 projects covering infrastructure, education, IT and government change programmes, costing £353.7bn. Each scheme is assessed using a traffic light warning system which sees 58 ranked as 'amber' meaning successful delivery is 'feasible', but 'significant issues already exist, requiring management attention'.

MPA says its assessment is based on the situation as at Q2 2012/13, which covers June-September 2012, and notes that both the RTI and Wider Coverage programmes have improved their governance and scrutiny and are on track to deliver the promised benefits.

However, HMRC's One Click initiative is one of 23 projects rated as 'amber-red' meaning successful delivery is in doubt. One Click is designed to bring all business services together in one place online. MPA says costs for this work are now forecast to be £26.04m in 2012/13, more than twice the £10.1m originally budgeted.

MPA says the overspend is down to failure to include the costs associated with the final tranche of work relating to the VAT Registration Transformation project. The budget has now been revised, and the delivery of the VAT Registration Transformation has been re-scheduled.

The government's Universal Credit project is also rated amber-red in the report, while there are eight schemes coded as 'red', where successful delivery appears 'unachievable'. These include the rail franchising programme for the West Coast mainline, and a planned upgrade to the online application system for passports.

Publishing the data, Cabinet Office minister Francis Maude said that reviews of major projects had helped save taxpayers more than £1.7bn since the MPA was formed in 2011.