The UK government has announced new measures to tackle the rising costs of the High Speed 2 (HS2) rail project, following concerns over its management and delivery. Transport Secretary Louise Haigh has acknowledged significant challenges inherited in her new role, emphasising the urgent need for effective oversight to control expenses and improve project outcomes.
In a statement released on 20 October 2024, Haigh highlighted the alarming escalation of costs for Phase One of HS2, attributing the surge to poor project management, inflation, and inadequate supply chain performance. “It has long been clear that the costs of HS2 have been allowed to spiral out of control,” she stated. “Since becoming Transport Secretary, I have seen up close the scale of failure in project delivery – and it’s dire.”
To address these issues, the government has launched an independent review of the HS2 project. The Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery adviser James Stewart, who will investigate the oversight of major transport projects and provide recommendations to improve forecasting, reporting, and cost efficiency.
Haigh has made it clear that the government is not reinstating Phase 2 of HS2, which was cancelled under the previous administration. While acknowledging concerns about connectivity between Birmingham and Manchester, the primary focus will be on delivering the London to Birmingham segment safely and at the lowest possible cost. This directive has been communicated to HS2 Ltd, the company responsible for the project.
In a bid to ensure greater accountability, the government will reinstate ministerial oversight of HS2. Regular meetings will commence immediately, involving Haigh, Rail Minister Lord Hendy, and the Chief Secretary to the Treasury. These meetings aim to identify and remove obstacles that hinder the efficient delivery of the railway project.
Additionally, the incentives of the main HS2 contractors will be reviewed, potentially leading to renegotiation or amendment of existing contracts. Haigh has also written to the Chair of HS2 Ltd, stressing the collective responsibility in reaching the current position and the necessity of immediate actions to turn the project around.
A new Chief Executive, Mark Wild, will soon take over the management of HS2 Ltd. With extensive experience in delivering transport projects, Wild will be tasked with assessing the project’s current cost, schedule, and culture, and will provide an action plan to deliver the remaining work effectively.
The government has committed to publishing biannual reports detailing the progress of HS2, ensuring transparency and accountability throughout the project’s lifespan. Haigh remarked, “Taxpayers have a right to expect HS2 is delivered efficiently, and I won’t stand for anything less.”
This announcement forms part of the government’s broader mission to rebuild Britain’s infrastructure, ensuring it serves the needs of the entire country. The urgency of this initiative reflects a commitment to rectify past shortcomings and deliver a reliable and efficient rail system for future generations.