Pause HS2 reset until you are confident it can be delivered, NAO tells ministers | HS2

Revised plans for HS2 should not be introduced until the government is confident they can be delivered, according to the public spending watchdog.

The project to build high-speed rail must be placed on a solid foundation to avoid a repeat of past failures, the National Audit Office (NAO) said in a report.

Last month, transport minister Heidi Alexander announced the scheme would now cost up to £102.7bn and that trains would not start running between London and Birmingham until 2039 – £70bn more and 13 years later than originally promised. He said the project would not be fully completed until 2043.

Mark Wild, chief executive of HS2 Ltd, has drawn up a new detailed plan for the remaining works following a 15-month review.

The NAO added that a “considered approach” had been taken to reset HS2 but that “significant work” remained before the project was completed.

The report said the Department for Transport (DfT) and HS2 Ltd were aiming to complete the reset by spring 2027, but added: “After past failures, it is crucial they do the right thing this time.

“They should ensure that they do not put plans into action until they are satisfied that everything is in place against them.”

The NAO said DfT and HS2 Ltd should review how “realistic” the new timeline is in the autumn and revise it if necessary. The cost of the reset is estimated to be £153 million.

Building HS2 from London to Birmingham, as well as the now-derelict stages to Leeds and Manchester, was initially estimated to cost £32.7bn at 2011 prices. The latest cost estimate is roughly double the figure estimated in 2020. Services were originally planned to begin this year.

The Manchester HS2 leg was canceled in October 2023 by then prime minister Rishi Sunak.

The NAO said most of the cost increases were due to “cost underestimation, inefficient delivery and scope changes.”

NAO chief executive Gareth Davies said: “Establishing a fully robust cost and schedule estimate, completing commercial negotiations and deploying the right talent will [DfT and HS2 Ltd] I can complete the reset.”

A DfT spokesman said: “After years of mismanagement, this government has taken decisive action to reset HS2 and ensure the line between Birmingham and London is delivered safely at the lowest reasonable 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 spokesman for HS2 Ltd said: “Fundamentally resetting HS2 was the only way to regain control of the project and break the cycle of poor delivery, delays and cost overruns.

“This is a hugely complex task, requiring a huge amount of external sector expertise and being carried out in parallel with the increase in productivity across HS2’s extensive 140-mile construction programme.

“Any costs associated with the reset will ultimately pay for themselves through improved management and efficiency.”