The Transport Secretary has today announced that she will accept all recommendations from the landmark James Stewart Review to restore public trust in HS2.
First commissioned by the Government in October last year, the report sets out evidence of the historic mishandling of HS2, including a lack of ministerial oversight and scrutiny, and a lack of effective incentives with the supply chain, which will collectively cost the taxpayer billions more than planned.
In a statement to Parliament, the Secretary of State condemned the “litany of failure” that has plagued HS2, citing spiralling costs, ineffective oversight, and broken promises.
Without action, Phase 1 alone risks becoming one of the most expensive railway lines in the world - with costs ballooning by £37 billion and £2 billion wasted on cancelled Phase 2 works.
Since entering office, the Government has taken decisive action to get back control of HS2 including: appointing new leadership to reset the project; commissioning the James Stewart Review; reducing financial delegations to HS2 Ltd, limiting what the Company can do without Government approval to place a lid on spiralling costs until the reset is complete; and providing £25bn in the recent Spending Review to support all of this work.
Speaking from the House of Commons earlier this afternoon, the Transport Secretary set out how the Department is already delivering on Mr Stewart’s five key recommendations:
- Lack of effective Ministerial oversight– the HS2 Task Force has been re-established with full senior official and ministerial attendance, offering much-needed oversight and accountability.
- Stricter cost control – the Department is ensuring HS2 Ltd and its suppliers negotiate incentives that ensure cost savings for taxpayers.
- Lack of capability, skills and trust – the Chief Executive of HS2 Ltd, Mark Wild, is instilling a new era of leadership, reforming the organisation with a focus on building the rest of the railway safely and at the lowest reasonable cost. Wild has previous experience in this having turned the delayed and over budget Elizabeth line into one of the most successful and celebrated new operating railways in the world.
- Lack of clarity on Euston station – the Government has already committed funding to start the tunnelling from Old Oak Common to Euston and further detail on delivery of the station will be set out in due course
- Lessons for the wider transport portfolio – the Government is committing to learning the lessons of the past 15 years to delivering infrastructure differently across its projects, with more to be set out in the upcoming 10-Year Infrastructure Strategy.
The Prime Minister has asked the Cabinet Secretary to consider the implications for the Civil Service and wider public sector of the issues raised in the report including whether further action or investigation is warranted.
The Transport Secretary confirmed that Mike Brown will be taking over as HS2 Ltd Chair, working alongside CEO Mark Wild to deliver a programme reset, including reviewing the costs and schedule, renegotiating HS2’s large construction contracts, and reviewing HS2 Ltd’s skills and structure. The Transport Secretary has asked Mark Wild to be ready to provide an update on revised costs and delivery timescales at the end of the year.
He brings decades of experience to the role, having previously delivered major projects such as the successful delivery of London Underground and mainline rail for the Olympic and Paralympic Games in 2012, and a multi-billion pound investment programme on London’s roads, rail, and cycling network.
Transport Secretary Heidi Alexander said:
"This must be a line in the sand. This Government is delivering HS2 from Birmingham to London after years of mismanagement, flawed reporting and ineffective oversight.”
"Mark Wild and Mike Brown were part of the team, with me, that turned Crossrail into the Elizabeth Line - we have done it before, we will do it again.
"Passengers and taxpayers deserve new railways the country can be proud of, and the work to get HS2 back on track is firmly underway."
The initial assessment of the newly appointed CEO Mark Wild was also published today, reiterating that the overall project in terms of cost, schedule and scope is unsustainable. Due to the scale of the mismanagement of the project, it set out that there is no route by which trains can be running by 2033 as previously planned and warns that costs would continue to increase if not taken in hand. The Transport Secretary accepted this conclusion.
HS2 is supporting over 33,000 jobs and over 3,400 UK businesses across all UK nations and regions. Over 44 miles of tunnels have been completed to date and the 2.1-mile deck of the Colne Valley Viaduct, the UK’s new longest railway bridge, was completed in September 2024.
HS2 will deliver high-speed rail services between London and the West Midlands, providing much-needed extra capacity between London and Birmingham, and delivering faster and more reliable trains from London to Manchester, Liverpool, and Scotland. Research estimates that HS2 will be responsible for the generation of £10 billion and 30,000 new jobs in the West Midlands, as well as £10 billion and over 18,000 new jobs in west London.
A spokesperson from the High Speed Rail Group has commented on today’s update on the HS2 project:
“HS2 has long required a fundamental reset, and today’s reports mark an important step in that direction. Under the leadership of Mark Wild, the project is being refocused after years of instability, where repeated chops and changes to scope have inflated costs and disrupted delivery. This reset begins the difficult but essential task of restoring confidence in one of the UK’s most vital infrastructure projects.
The supply chain remains fully committed to supporting HS2 Ltd in delivering the project with greater efficiency and improved productivity. Work is already underway to ensure it is delivered as cost-effectively as possible going forward.
HSRG also welcomes the appointment of Mike Brown as Chair of HS2 Ltd. His leadership experience at Transport for London will bring valuable expertise as he helps to rebuild a strong and collaborative relationship between HS2 Ltd and the Department for Transport. This partnership will be essential to the success of the reset and the project’s long-term future.
Rail infrastructure remains key to turbo-charging the economies of our regional cities. If delivered successfully, HS2 will unlock national capacity, enhance regional connectivity, and drive long-term economic growth across the UK, setting the whole country up for future success.”
Commenting on the Government’s HS2 update, Railway Industry Association (RIA) Chief Executive Darren Caplan said:
“The Railway Industry Association welcomes today’s clarification from the Government on HS2. It is now essential that HS2 Ltd’s CEO Mark Wild is given the time and space he and his team needs to carry out a ‘reset’ of the programme to deliver this project, so crucial to increasing UK rail capacity to the benefit of towns, cities, communities and the country’s economic needs for decades to come.
“RIA agrees it is important following the announcement that the lessons of the past are learnt, when it comes to avoiding the temptation to specify dates and costs prematurely on major infrastructure projects. And we support the appointment of Mike Brown as HS2 Chair. Mike Brown has been involved at the highest levels with rail related infrastructure in the past, and we wish him well in this new role.”
Image credit: HS2
On 10th July we are holding our TransCityRail South event at Twickenham where HS2 will be one of the subjects featured. There is still time to get your ticket. To find out more click here
