06.01.14
HS2 overspend could drive cost up to £72bn – HS2 Action Alliance
If HS2 goes over budget to the same degree that other major public sector building projects have in recent years, it could cost at least £72bn, HS2 Action Alliance has warned.
It put out a table listing 11 recent major public sector building projects, with an average overspend of 158%. Using the government’s lowest cost estimate for HS2, this would cost £72bn. However, this figure also includes non-rail projects, including the vastly over-budget Scottish Parliament construction, and the NHS National Programme for IT.
Both HS1 and the Channel Tunnel went over budget, by 35.71% and 99.37% respectively, it says.
Richard Houghton, a director of HS2AA, said: “The figures, even the lowest ones, are far too big to comprehend, but the effect all too familiar. In fundamental terms, it could mean boom for contractors, but a mini recession for everybody else as budgets are cut and taxes levied to address the overspend on HS2.
“This research proves that public sector building projects like HS2 are nearly always afflicted by enormous cost inflation, and this is already happening to HS2, where costs are out of control even on paper.
“If we apply the 158% figure to HS2, and use the very lowest estimated cost of £28bn (which excludes £14bn of government allocated ‘contingency’), it means the final cost of the project will be about £72bn – or a cost of about £1,400 to every single adult in Britain. The government is currently estimating that HS2 will cost £50bn, but where is this extra £22bn going to come from? To put it in perspective, that would pay for the disaster-plagued NHS IT programme twice over, something which in itself was 216% over budget.
“HS2 is not needed, not wanted by the British people and is an horrendous waste of money. It’s truly baffling why the Labour Party is propping-up the Tory-led Coalition to force through HS2 against the wishes of the British people. They need to come to their senses soon and remove their support for this political vanity project, which is a gravy-train for big business, but will cost ordinary people dearly for many years to come.”
Tell us what you think – have your say below, or email us directly at [email protected]
Image c. djim