Posted 21st October 2024 | 3 Comments

Government announces major review of ‘dire’ HS2

The Government has dismissed reports that construction of HS2 could be going ahead between the West Midlands and Crewe, and is launching an independent review of the costs of Phase 1 between London and Birmingham with the intention of learning lessons from the troubled history of the high speed line.

Former London Underground managing director and Crossrail CEO Mark Wild has been named as the new chief executive of HS2 Ltd, while some of the construction contracts are to be reviewed and could be amended.

Transport secretary Louise Haigh said the extent of the challenge inherited on HS2 has become clear, with ‘costs being allowed to spiral out of control and failure to deliver to budget’.

The Government is attributing the soaring costs of HS2 to ’poor project management, inflation and poor performance from the supply chain, without sufficient explanation of what is to be done to deliver to budget’.

It has also made it clear that it will not be reversing last year’s decision to cancel Phases 2A and 2B, although it ‘recognises concerns about connectivity between Birmingham and Manchester’. Even so, ministers say the primary focus is now the completion of HS2 Phase 1 between London and Birmingham ‘at the lowest reasonable cost’.

The Government is also reinstating ministerial oversight of the project to ensure greater accountability. This will involve regular meetings from now on, where both the transport secretary and rail minister Lord Hendy will be joined by the chief secretary to the Treasury. They plan to ‘challenge and remove obstacles to securing the full benefits of the railway more cost effectively’.

Transport secretary Louise Haigh said: ‘One of my first jobs has been to urgently review the position I have inherited on HS2.

‘It has long been clear that the costs of HS2 have been allowed to spiral out of control, but since becoming transport secretary I have seen up close the scale of failure in project delivery – and it’s dire.

‘Taxpayers have a right to expect HS2 is delivered efficiently and I won’t stand for anything less.   

‘I have promised to work fast and fix things and that's exactly why I have announced urgent measures to get a grip on HS2’s costs and ensure taxpayers’ money is put to good use.  It's high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.’

The independent Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery advisor James Stewart, and will make recommendations to the Government this winter.

It will investigate the oversight of major transport infrastructure projects, including the effectiveness of forecasting and reporting of cost, schedule and benefits, as well as ways to make savings.

Reader Comments:

Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.

  • david C smith, Bletchley

    From what I read, it appears that purchase of properties that need to be taken out of the paths of new high speed tracks is more generously compensated than in GB, but also more dictatorially applied.

    Which way should we jump ?

  • Alan Saddington, Canvey Island

    NIMBYS have contributed massively to the costs of this project and the last government have let it get away with it. the amount of tunnelling and bridges on this relatively short route is far too costly

  • Steve J Alston , Crewe

    Crewe station itself is a major obstacle to both classic and high speed rail. One solution for Crewe is complete demolition and move anything of heritage value to a museum. The road above needs diverting 100m north via Tommy's Lane and everything flattening.

    LSL's mostly heritage depot needs removing from the WCML and resiting up the Salop or south of LNWR to allow a non-squashed six line approach to the station. Transport for Wales' Cardiff service should be on low level platforms on the independent lines and perhaps the only thing left standing, the beautiful building on platform 12, hollowed out and rebuilt as a respectable main entrance & ticket office to the station with a new approach road built over the Horselanding.

    Nantwich Road bridge should be demolished with a foot & cycle bridge replacing it, with including two new link bridges to both retail parks - Grand Jn and Dorothy Flude (Lidl) which will also serve as a shorter route to the town centre.

    There's so much land available currently wasted. These heritage groups must understand Crewe is a working station and their repeated control over this dump of a station will cause it's ultimate demise - either modernise or it should be shut & be bypassed with a new station built further down.