HS2’s failures under spotlight as £153 million to be spent on reset process

HS2’s failures under spotlight as £153 million to be spent on reset process HS2 could cost more than £100 billion and may not open until 2039 - Bookmark - CommentsGo to comments Revised plans for the HS2 high-speed rail project should not be put into action until there is confidence in their delivery, according to the UK’s public spending watchdog. The National Audit Office (NAO) stated in a new report that the ambitious railway scheme must be placed on a stable footing to prevent a repeat of previous failures. This warning follows last month’s announcement by Transport Secretary Heidi Alexander of a larger cost estimate and an extended timeline for the project. HS2 Ltd chief executive Mark Wild is currently leading a "reset" of the scheme, which is scheduled for completion in 2027 with a new detailed plan for the remaining works. The NAO acknowledged that a "considered approach" is being taken to this reset but cautioned that "significant work remains" before the process is finalised. The report said: “DfT (Department for Transport) and HS2 Ltd are aiming to complete the reset by spring 2027 but it is crucial that they get it right this time following past failures. “They should ensure that they do not proceed with putting the plans into action until they are confident everything is in place to deliver against them.” It added that, in the autumn, the DfT and HS2 Ltd should review how “realistic” its timetable for completing the reset is, and revise it if necessary. The NAO said the estimated cost of the reset process is £153 million. Ms Alexander announced in May that HS2 could cost more than £100 billion and may not open until 2039. Constructing HS2 from London to Birmingham – plus the now abandoned onward legs to Leeds and Manchester – was initially estimated to cost £32.7 billion (in 2011 prices). The latest cost estimate is roughly double the figure from 2020. Services were initially scheduled to launch this year. The NAO said most of the cost increases were caused by “cost underestimation, inefficient delivery and scope changes”. Gareth Davies, head of the NAO, said: “After facing historic difficulties, including significant cost increases and delays to delivery, HS2 Ltd and DfT are taking a considered approach so far in their latest reset to the HS2 programme. “However, these previous issues highlight the importance of DfT and HS2 Ltd getting it right this time to ensure the future success of the programme. “Establishing a fully robust estimate of cost and schedule, completing commercial negotiations and getting the right capabilities in place is necessary before they can complete the reset.” A DfT spokesperson said: “Following years of mismanagement, this Government has taken decisive action to reset HS2 and ensure the safe delivery of the line between Birmingham and London at the lowest reasonable cost. “The reset is driving faster, more efficient construction on the ground, with six major construction milestones reached ahead of schedule last year.” A spokesperson for HS2 Ltd said: “Fundamentally resetting HS2 was the only way to regain control of the project and break the cycle of poor delivery, delays and cost increases. “This is a hugely complex task, requiring a vast amount of external industry expertise, and has been carried out in parallel with an increase in productivity across HS2’s vast 140-mile construction programme.” He added: “Any costs associated with the reset will ultimately pay for themselves through improved management and efficiencies.” Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments