Latest Rail News

16.10.18

Delays to Crossrail could ‘push HS2 off track’

Delays and cost overruns on the Crossrail project could have a significant impact on HS2, according to the Construction Products Association (CPA).

The nine-month delay could “exacerbate” pressures on HS2’s struggling budget and push the cost above the £55.7bn forecast, according to the CPA’s analysis.

The hold-up could also impact several other major projects in the construction industry including Hinkley Point C, a nuclear power plant being built in Somerset.

Crossrail was due to open at the end of the year but has now been delayed until next Autumn.

The CPA’s report said that the push back would “heighten concerns regarding delivery of HS2” and “raises questions regarding whether the industry will see HS2 work as quickly as initially anticipated.”

Esther McVey, the work and pensions secretary, has said that the total cost of HS2 could rise to more than £100bn and accused the government of “writing a blank cheque” for the high-speed rail scheme, as reported in The Sunday Telegraph.

The comments were made to her constituents in Tatton, Cheshire last November, but the comments have just resurfaced.

McVey is among at least 12 cabinet ministers calling for a review asking whether completing the scheme represents value for taxpayer money.

Noble Francis, economics director at the CPA, said: “Major infrastructure projects are expected to drive industry growth in 2019 and 2020 but the £600m cost overruns and nine-month delays to Crossrail add to existing concerns about government’s ability to deliver major projects and lead to additional concerns about the delivery of already delayed projects such as Hinkley Point C and HS2.

“As a result, we have had to significantly revise down our construction forecasts for the infrastructure sector and overall.”

She added: “Looking on the positive side, if the government is able to reduce the uncertainty sooner rather than later and improve delivery of major projects, to time and budget, then the risks to the forecasts are on the positive.”

Following the setbacks to Crossrail, Sir Terry Morgan announced that he would be stepping down from the £15m project.

Enjoying RTM? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Northern leaders warn Treasury against scrapping under-fire HS2

23/05/2019Northern leaders warn Treasury against scrapping under-fire HS2

Scrapping HS2 would be a “disaster” and would undermine Britain’s “national prosperity for decades to come,” more t... more >
Network Rail unveils new regional managing directors

23/05/2019Network Rail unveils new regional managing directors

Network Rail has announced five new regional managing directors as part of its “evolution” towards a more passenger-focused approach.... more >
£800m worth of rail haulage contracts awarded by Network Rail

22/05/2019£800m worth of rail haulage contracts awarded by Network Rail

Network Rail has awarded contracts for rail haulage and the operations of its engineering trains and seasonal treatment services for Control Peri... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

rail industry focus

View all News

interviews

Advancing the rail industry with management degree apprenticeships

08/05/2019Advancing the rail industry with management degree apprenticeships

In answering the pressing questions of how current and future generations of managers can provide solutions to high-profile infrastructure projec... more >
Women in rail - is the industry on the right track?

12/03/2019Women in rail - is the industry on the right track?

RTM sits down with Samantha Smith, sole female member of the TransPennine Route Upgrade Alliance Leadership Team, to find out more about encourag... more >
TfN Strategic Transport Plan: not just for transport's sake

22/01/2019TfN Strategic Transport Plan: not just for transport's sake

Peter Molyneux, Transport for the North’s (TfN’s) strategic roads director, has been leading on the development of the seven economic... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. ... more > more last word articles >

'the sleepers' daily blog

Meeting clients, suppliers and stepping forward

23/05/2019Meeting clients, suppliers and stepping forward

The Midlands 30-year plan will deliver many economic benefits and will need a wide and diverse supply chain to deliver some of the key projects. ... more >
read more blog posts from 'the sleeper' >

comment

The railway franchising model is broken, and passengers are paying the price

13/05/2019The railway franchising model is broken, and passengers are paying the price

Meg Hillier, MP for Hackney South and Shoreditch and chair of the Public Accounts Committee (PAC), gives her view on the state of the UK’s ... more >
NSAR: Tackling the digital skills shortage

13/05/2019NSAR: Tackling the digital skills shortage

The National Skills Academy for Rail (NSAR) chief executive Neil Robertson returns to write for RTM, this time, to assess the digital skills shor... more >
Delivering cost-effective electrification

13/05/2019Delivering cost-effective electrification

David Clarke, technical director of the Railway Industry Association (RIA), sets out the findings of a new report on how rail electrification can... more >
5G: An opportunity to revolutionise on-train connectivity

13/05/20195G: An opportunity to revolutionise on-train connectivity

Simon Holmes, group head of digital (engineering) at FirstGroup, introduces us to the 5G solution being delivered for the rail sector.  ... more >