Action to control the cost of HS2 and bring the project back on track has been announced by the transport secretary today [20 October 2024] after what the incumbent government terms as ‘years of failed delivery’.
The UK government has been clear it is not resurrecting Phase 2 of HS2, which was cancelled under the previous administration.
Although the government also acknowledged concerns about connectivity between Birmingham and Manchester, it has reiterated that its primary concern is the delivery of HS2 between Birmingham and London at the lowest reasonable cost.
To achieve this, the government is also reinstating ministerial oversight of the project to ensure greater accountability.
This will see regular meetings starting immediately, where both the transport secretary and rail minister, Lord Hendy, alongside the chief secretary to the treasury, will challenge delivery and remove obstacles to securing the full benefits of the railway more cost effectively.
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.
Separately, the incentives of the main HS2 contractors are also being reviewed, which could lead to some contracts being renegotiated or amended.
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.
“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.”
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