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 years of failed delivery.
Just months into the role, Louise Haigh has warned the extent of the challenge inherited on HS2 has become clear, with costs being allowed to spiral out of control and failure to deliver to budget.
Over the years, the cost of Phase One has soared, due to poor project management, inflation and poor performance from the supply chain, without sufficient explanation of what is to be done to deliver to budget.
In response, 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.
The government has been clear it is not resurrecting Phase 2 of HS2, which was cancelled under the previous administration. The government recognises concerns about connectivity between Birmingham and Manchester, but its primary focus now is the safe delivery of HS2 between Birmingham and London at the lowest reasonable cost, and the Secretary of State has made this objective clear to HS2 Ltd.
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.