February 28th 2025.
A group of influential Members of Parliament (MPs) recently released a harsh report on the High Speed 2 (HS2) railway project. The report, which was highly critical of the project, stated that it serves as an example of how not to manage a major project. HS2 has faced numerous challenges, such as delays and rising costs, and even the cancellation of its northern leg. The fate of the London Euston extension was also uncertain for a while, but it was eventually confirmed in the autumn budget.
The project has been under intense scrutiny by the Commons Public Accounts Committee, who have called for a complete "reset" of the project due to alleged failures. One such failure was the spending of £100,000,000 on a bat protection tunnel in Buckinghamshire. The committee did not hold back in their report, stating that the Department for Transport (DfT) has failed in its oversight and financial control of the high-speed rail project. This harsh criticism has raised concerns about the project's impact on the UK's reputation.
The cross-party group of MPs responsible for overseeing government expenditure expressed their disappointment in the management of HS2, stating that it serves as a "casebook example" of how not to run a major project. They also stressed the importance of not wasting the latest opportunity to reset the project and maximize its benefits for taxpayers.
The cost of HS2 has been a major point of contention, with the MPs warning that it could reach as high as £80,000,000,000 if 2019 figures were adjusted for inflation. However, the estimates provided by the DfT and HS2 Ltd are much lower. According to the DfT's November 2023 estimates, the project could cost between £45,000,000,000 and £54,000,000,000. HS2 Ltd, on the other hand, estimated in June that the project would cost between £54,000,000,000 and £66,000,000,000.
The committee also highlighted the lack of effective collaboration between the DfT and HS2 Ltd, which is evident in their disagreement over the project's costs. Even the new CEO of HS2, Mark Wilde, acknowledged the seriousness of the situation and called for a fundamental reset of the project when he took on the job in December.
Sir Geoffrey Clifton-Brown, the Conservative MP who chairs the committee, stated that HS2 serves as a cautionary tale for future governments on how not to manage a major project. He expressed skepticism about the government's ability to successfully deliver even a scaled-down version of the project, which they already know will provide poor value for money. The main concern now is what benefit the government can salvage for taxpayers from this mess, which poses a real risk to the UK's reputation.
The future of the London leg of HS2 from Old Oak Common to Euston has also been uncertain. In October 2023, then-Prime Minister Rishi Sunak scrapped the HS2's northern route from Birmingham to Manchester, casting doubt on the project's continuation to Euston. The section to Leeds had already been cancelled two years prior. However, after a year of uncertainty, Chancellor Rachel Reeves confirmed in the autumn budget that HS2 would indeed run to Euston.
Tunnelling work from Old Oak Common to Euston is expected to take around 18 months to complete, and the DfT is currently working on a master plan to bring the new HS2 Euston terminus and National Rail services at Euston station under one concourse. However, the committee has raised concerns about the feasibility of DfT's goal to privately fund the Euston redevelopment.
HS2 Ltd has stated that they agree with the committee's conclusion that there have been management failures in the project's cost and schedule. They also mentioned that Mark Wilde is taking decisive action to get the project back on track at the lowest feasible cost. The High Speed Rail Group, an industry body, has shown its support for Mark Wilde and HS2 Ltd, acknowledging the need to reset the project.
Metro reached out to the DfT for a comment, but they have not yet responded.
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