HS2

‘Clarity needed’ over HS2 schedule and costs as phase 1 date faces year delay

HS2 is still struggling to convincingly explain its timetable and costs, the Public Accounts Committee (PAC) has warned.

The warning comes as HS2 Ltd and government officials are now considering postponing the opening of phase 1 of the high-speed railway from December 2026 to 2027, when phase 2a is expected to open – although the DfT “maintains that delays to phase 1 will not have an impact on the phase 2 timetable”.

In addition, the PAC said that HS2 had not provided a clear estimate of the costs of phase 2. At the time of the 2015 Spending Review, the DfT estimated it would cost £35.5bn against an agreed budget of £28.5bn. The department and HS2 Ltd have now produced a plan for £9bn of savings, but the PAC said that it “remains to be seen” whether they could be delivered without “adversely affecting” the goals of the programme.

Meg Hillier MP, chair of the PAC, said: “The government has promised significant benefits to taxpayers in return for their investment in HS2, expected to run to more than £55 billion.

“Despite this, Parliament and the public are still in the dark about crucial details – not least when the railway will open, how much it is expected to cost and precisely where it will go.

Hillier also said that Simon Kirby’s resignation as HS2 chief executive “adds to the uncertainty enveloping a project on which strong and stable leadership is vital”.

And a lack of clarity over HS2’s plans for South Yorkshire also “highlights what is at stake for communities and local economies”, she added, with the committee stressing that the DfT needs to explain why it choose to change the planned route so that it stops at Sheffield Midland instead of Meadowhall.

The change is meant to save £1bn, but the PAC said that it would only allow one or two high-speed trains an hour to stop in Sheffield, instead of the planned five, whilst the disruption to communities that had not expected to be affected by the development was not yet known.

The PAC said that by autumn this year, when the department is due to announce the route of phase 2b, it should produce a realistic timetable for the project, including confirming when phase 1 will open and a firm cost estimate for phase 2.

It added that the department needs to report back within 12 months on its progress in securing the relevant skills for the project, seek assurances from local authorities that they will identify funding and financing to secure the growth benefits of HS2, and publish plans on how HS2 will be integrated into the rest of the rail network.

Joe Rukin, campaign manager for Stop HS2, said: “Not for the first time, the Public Accounts Committee has produced a report on HS2 which is stating the bleeding obvious.

“It has always been the case with HS2 that the costs are volatile, the timescales unrealistic, that there is no money for regeneration and no plan for how it will effect existing trains. We have been saying this for six years, but despite all that, there has always been this irresponsible dogmatic insistence that this white elephant must happen.”

But an HS2 Ltd spokesperson said: “As with the NAO report earlier this year, we greatly welcome the scrutiny of the Public Accounts Committee, and their acknowledgement of the considerable progress that the programme has made since 2013.

“We are making good progress in building confidence in our programme plan, and will continue to do so over the coming months. We expect to get a government decision on the 2b route this autumn and we are on track to achieve Royal Assent by the end of the year.”

A Department for Transport spokesperson said: “The government is fully committed to HS2 and the project is on time and on budget.

“We are keeping a tough grip on costs, and pressing ahead with plans for Phase Two – with further details due to be announced this Autumn.

“Improving regional infrastructure is vital in supporting regional growth and building an economy that works for everyone. HS2 is a key part of this, and will be the backbone of our national rail network.”

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