Friday, November 22, 2024

Transport Secretary orders probe into HS2 costs, rules out Northern extension

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The Transport Secretary, Louise Haigh has ordered an investigation into HS2’s costs as she also rules out recent rumours that the line will be extended north of Birmingham.

HS2 tunnel entrance next to the M25 motorway (c) ianVisits

Following concerns about cost controls at HS2, the Secretary of State has launched an independent review to ensure lessons are learned to support action and to ensure that the costs for HS2 are brought under control.

She has also stated that the government will not be resurrecting Phase 2 of HS2, which was cancelled under the previous administration, saying that HS2’s primary focus now is the safe delivery of th railway between Birmingham and London.

The government is also reinstating ministerial oversight of the project and will host regular meetings between HS2 and both the Transport Secretary and Rail Minister, Lord Hendy, alongside the Chief Secretary to the Treasury.

Separately, the incentives of the main HS2 contractors are also being reviewed, which could result in renegotiating or amending some contracts.

Transport Secretary Louise Haigh said: “One of my first jobs as Transport Secretary 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.”

The Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery adviser, James Stewart, and will present recommendations back 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 actions to deliver cost efficiencies. The review will primarily draw on experiences of HS2 to date to ensure recommendations and learnings are applied to its delivery as well as to future projects.

A spokesperson for HS2 Ltd said: “We welcome the Secretary of State’s priorities for HS2 Ltd and are committed to working with the new Government to improve delivery. We also fully support James Stewart’s governance review and look forward to his recommendations.

“HS2 Ltd recognises that there are many lessons to be learned from delivery to date and, under new leadership, are actively implementing the changes within our control to stablise costs. HS2 is a complex project of strategic importance to the UK’s rail network, which will not only provide better journeys, more services and fewer delays for rail passengers, but will unlock economic growth and tackle regional inequality.”

Updated 15:00 with HS2 statement

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