HS2’s failures under spotlight as £153 million to be spent on reset process
Revised plans for the HS2 high-speed rail project should not be implemented until there is confidence in their delivery, according to the UK’s public spending watchdog. The ambitious rail plan needs to be put on a solid foundation to avoid a repeat of previous failures, the National Audit Office (NAO) has said in a new report.
The warning follows Transportation Secretary Heidi Alexander’s announcement last month of a larger cost estimate and extended timeline for the project. HS2 Ltd chief executive Mark Wild is currently leading the “reset” of the scheme, which is due to be completed in 2027 with a new detailed plan for the remaining works. The NAO acknowledged that a “cautious approach” was being taken to this reset, but warned that “significant work remains” before the process is concluded.
The report said: “DfT (Department for Transport) and HS2 Ltd are aiming to complete the reset by spring 2027, but after past failures it is crucial they get it right this time.
“They should ensure that they do not put plans into action until they are satisfied that everything is in place against them.”
He added that in the autumn the DfT and HS2 Ltd should review how “realistic” the timetable for completing the reset is and revise it if necessary.
The NAO said the estimated cost of the reset was £153 million.
Ms Alexander revealed in May that HS2 could cost more than £100bn and might not open until 2039.
Building HS2 from London to Birmingham (plus stages to the now-derelict Leeds and Manchester) was initially estimated to cost £32.7bn (in 2011 prices).
The latest cost estimate is roughly double the 2020 figure.
The services were originally planned to launch this year.
The NAO said most of the cost increases were due to “cost underestimation, inefficient delivery and scope changes.”
NAO chief executive Gareth Davies said: “After facing historic challenges including significant cost increases and delivery delays, HS2 Ltd and the DfT are taking a considered approach so far in their latest reset. HS2 program.
“However, these previous issues highlight the importance of DfT and HS2 Ltd. is doing the right thing this time to ensure the future success of the program.
“It is necessary to create a fully robust cost and schedule estimate, complete commercial negotiations, and bring the right talent on board before completing the reset.”
A DfT spokesman said: “After years of mismanagement, this Government HS2 To ensure the safe delivery of the line between Birmingham and London at the lowest cost.
“The reset enables construction to be faster and more efficient, with six key milestones in construction being reached ahead of schedule last year.”
a spokesperson HS2 Ltd said: “It’s fundamentally resetting HS2 It was the only way to regain control of the project and break the cycle of poor delivery, delays and cost overruns.
“This is an extremely complex task requiring a huge amount of external industry expertise and has been carried out in parallel with productivity growth across all sectors. HS2‘s extensive 140-mile construction program.”
He added: “Any costs associated with the reset will ultimately pay for themselves through improved management and efficiency.”
