Posted 31st July 2024 | 4 Comments
Losses on cancelled HS2 phases top £2 billion
The cost of abandoning HS2 north of the West Midlands has topped £2 billion, according to HS2 Ltd.
In its latest annual report, for 2023-24, the government’s developer said it had written off costs of £1,003 million which had been spent on Phases 2A to Crewe, Phase 2B to Manchester and the new station at London Euston.
This total consisted of £713 million on Phase 2A, £137 million on Phase 2B West and £153 million on Euston station. In addition, there was a further £1,074 million in costs previously incurred on Phase 2, plus almost £95 million spent north of Birmingham since the Crewe and Manchester sections were cancelled, giving a total of approximately £2,172 million.
The £95 million spent since Prime Minister Rishi Sunak cancelled Phases 2A and 2B last October included ‘remediation, reinstatement, and costs of exiting the phase with an orderly, regular, and safe cessation of activities’, according to the report.
The changes at London Euston, which have yet to be confirmed or funded, reduce the size of the proposed station from 10 to six platforms. The report explains: ‘The company is no longer expected to gain an economic benefit from the specific design work already completed on the 10-platform station. Accordingly, the company has impaired the value of the work that can no longer be used by reducing the asset value and declaring the expenditure [£152.9 million] as a loss.’
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david C smith, Bletchley
An interesting situation - what to do with the HS2 that is already there, including contractual issues , etc.
The original reason for HS2 was congestion on WCML , particularly south of Rugby. This must largely now be solved ? There was never a sound reaon for speeds of 225 mph, with the higher cost involved. We live in a country with distances too short for such radicalism to be fully effectual.
The best we can now hope for, it seems is that any future needs that are covered by new infrastructure construction do not end up as badly designed , and vastly over budget ( a British tendency, i 'm afraid ).
Graham Wood, Swindon
Treasury orthodoxy always wins. After three weeks it has already defeated Starmer. Wilson Blamed the 'Gnomes of Zurich'. It wasn't, it was the treasury Mandarins. Their grandsons are still in control.
Michael T., Reading
We HAVE a New Government in the UK. I know they have only been in office for three weeks but they must get their house of cards in order to get ALL their Legislative and Policy Agenda launched, in the daily discourse of media and social media... all within the first 100 days. Anything that is not announced and actions started on Infrastructure Projects by end of Next Week... it will be too late. You have a Blair Majority but you Lack the Blair VISION of a better tomorrow each day after day after day. Other than King's Speech... there have been Zero Policy Agenda Items that have filtered down to the likes of your or me.
FACT is, New Govt, can easily Nullify the cancellation of HS2 part Deux!
WHY is the Land entering the SALE Process?
It is already owned. If it is Safe Guarded (Protected)... even IF Labour miss this opportunity to INVEST in Infrastructure... a future government or Regional Governments would have the land 'at the shovel ready' to start construction of the rest of HS2 and expand to HS3, HS4, HS...10, 20, 30...
Proper High Speed Railway connecting all urban conurbations in UK, Eire, BeNeLux/North France with no two being more than 2.5 hours apart.
STOP this SALE now. You have the number of MPs to do whatever you want. JFDI!
You won the Election so DO something that Emulates China in Infrastructure Construction Projects so we can Grow our economy out of the Dire Mess state from the Tory R APE of the UK Nations for their own financial gain.
I hear rumours of tax rises. The Rest of the world has Lower interest rates. The higher prices of products due to Brexshitastrophe (not Keynes supply/demand) so the BoE base rate should be dropped to 1% of less... and the government should BORROW, BORROW, BORROW... at a "FIXED RATE" of 1% of 0.5% for 50 to 75 years and then emulate the EU/US/Japan etc... Inflate the economy to where the debt is insignificant. Borrow and Park it for decades!
WW2, UK - England was bankrupt and with reconstruction there was Money that had to be borrowed. It was such a MASSIVE Amount the IMF and World Bank had to be created to loan the money to the UK. UK made final payment (at 1% in 2006/7). The MASSIVE Unheard of amount in 1945 was £250 MILLION gbp!
Today that is the price of a personal yacht, plane, house in parts of London, football transfer fee, etc... in another 20 to 30 years, it will be a child's daily Pocket money. The rest of the Developed world is going to Inflate away the debts of the previous 40 years.... the UK will be inflated so get your house of cards in order and get on the Train before 23:59 for Once!
Neil Palmer, Waterloo
Take it out of Rishi Sunak's future MP pension?