UK Govt acts to control rising HS2 costs.
The Secretary of State for Transport has recently unveiled a series of new measures aimed at reining in the costs of delivering HS2, whilst also steering the project back on course.
For years, the expenses associated with the first phase of this high-speed rail line have been mounting due to a combination of factors such as ineffective project management, inflation, and underperformance within the supply chain. This troubling trend prompted the Transport Secretary to initiate an independent review to identify the necessary steps to bring the costs back under control, all the while ensuring that valuable lessons are duly noted.
The Major Transport Projects Governance and Assurance Review has been set in motion to investigate the oversight of major transport infrastructure projects, with a special emphasis on the prediction and reporting of costs. This comprehensive review, overseen by senior infrastructure delivery advisor, James Stewart, will present its recommendations to the government in the winter.
Furthermore, a thorough examination is underway to evaluate the incentives accorded to the primary HS2 contractors, potentially resulting in the renegotiation or amendment of certain contracts.
To bolster the delivery of the first phase of HS2, the government has opted to reintroduce ministerial oversight of the project, thereby fostering greater accountability through regular meetings wherein the Transport Secretary, Rail Minister, and Chief Secretary to the Treasury will collectively scrutinize progress and eliminate any hindrances.
In a statement, Transport Secretary Louise Haigh remarked:
“One of my initial undertakings as Transport Secretary has been to promptly assess the situation surrounding HS2.
It has long been evident that the costs associated with HS2 have spiralled out of control, but since assuming this role, I have witnessed firsthand the extent of the failings in project delivery – and it is indeed grave.
Taxpayers rightfully expect HS2 to be delivered efficiently, and I am committed to nothing less.
I have pledged to act swiftly and rectify the situation, which is why I have introduced urgent measures to rein in HS2’s costs and ensure that taxpayers’ funds are optimally utilised. It is imperative that we derive meaningful lessons from this experience and prevent the errors of HS2 from recurring in the future.”
The preceding administration had taken the decision to scrap the second phase of the HS2 line, which aimed to connect Birmingham and Manchester, and despite ongoing speculations about its revival, the government has officially declared that this leg of the journey will not be reinstated. Nevertheless, acknowledging concerns regarding connectivity between the North and the Midlands, the government has acknowledged their significance.
Image credit: HS2 Ltd