HS2 scrutiny committee says 80bn rail line is lesson in how not to run a major project
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In a damning report published today (28 February), the governments Public Accounts Committee (PAC) demanded detailed plans for a fundamental reset for HS2 by summer 2025, following what it describes as a litany of failures and unheeded warnings on the project which are likely to have wasted billions of pounds of taxpayers money.The committee, which examines the value for money of government projects, programmes and service delivery, insists that the Department for Transports (DfT) failure to manage the major public sector project now represents a reputational risk to the UK.What possible benefit can the government now salvage for the taxpayer?Geoffrey Clifton-Brown MP, chair of the committee, said it is long past the point of making recommendations which could deliver better outcomes for HS2 passengers.AdvertisementHe said the question, instead, had become: What possible benefit can the government now salvage for the taxpayer, from a mess that presents real risks to the UKs overall reputation?In his damning statement following publication of the report, Clifton-Brown described HS2 as a cautionary tale that should be studied by future governments in how not to run a major project.We are sceptical of governments ability to successfully deliver even a curtailed scheme, one which we already know will on its face bring very poor value for money, he added.The committees report marks the latest update in its long-running scrutiny of the project, following the cancellation of HS2s Northern Leg in October.Among its most pressing concerns over HS2, the committee highlights the mismanagement of Euston Station architect Grimshaws plans for the London terminus have been repeatedly reworked due to changes in scope and budget.AdvertisementIt also picked out the 100 million costs racked up up for a HS2 bat tunnel in Buckinghamshire issues which Labours former transport secretary, Louise Haigh, respectively described as an absolute mess and the tip of the iceberg in the high-speed rail lines project mismanagement. Source:HS2 LtdProposed north entrance to HS2 Euston station (as updated November 2022)The report points out: The c100 million cost of the 1km bat tunnel, which did not strike the right balance between protecting wildlife and the burden on the taxpayer, more than doubled the cost of that section of railway alone.Meanwhile, the governments plans on Euston currently rest on the circa 6 billion cost of the station being significantly underpinned by the private sector, explained the committee, which says it remains sceptical that the private sector will provide the necessary funds.In the meantime, local businesses, residents and passengers will continue to face significant disruption at Euston for many years to come, added the PAC.The PAC said the government and HS2 Ltds failure to work together effectively on HS2 was illustrated by their inability to agree with each other on how much the programme will cost.The committee itself estimates that the total programme costs of HS2 could approach 80 billion and it is pessimistic that significant savings can be made during construction, given a lack of apparent incentives for contractors to deliver significant savings.Clifton-Brown added: It is ultimately the Department for Transport that has failed to manage this enormous project and manage HS2 properly.This is likely to have wasted billions of pounds of taxpayers money in delays and overspends.Clifton-Brown said the DfT and HS2 Ltd must now begin the hard work of making this project the best possible version of itself in the circumstances. He said the department must reset itself, as well as the project, to achieve a workable conclusion in line with the eventually agreed budget and timescale.The committee chair added: [The DfT] will need to employ people with the correct range of skill sets to critically supervise and oversee this huge project. This is the only way to salvage its severely tarnished reputation.We expect to see a real improvement when we next examine this matter.Shortly after joining HS2 Ltd as its new chief executive in December 2024, Mark Wild acknowledged that the project was in a very serious situation that requires a fundamental reset.Wild said he remained committed to ensuring that the railway opens safely and efficiently.2025-02-28Anna Highfieldcomment and share
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