Independent review launched to tackle spiralling HS2 costs

An independent review has been launched by the Transport Secretary, to delve into HS2’s spiralling costs and “bring the project back on track”.

Louise Haigh has reinstated ministerial oversight of the project, and will hold regular meetings with HS2 Ltd alongside rail minister, Lord Hendy and the Chief Secretary to the Treasury, to “challenge delivery and remove obstacles”.

The Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery advisor, James Stewart, and will present recommendations back to the Government this winter.

It will investigate the oversight of major transport infrastructure projects, including the effectiveness of forecasting and reporting of cost, schedule and benefits, as well as actions to deliver cost efficiencies. The review will primarily draw on experiences of HS2 to date to ensure recommendations and learnings are applied to its delivery as well as to future projects.

Separately, the incentives of the main HS2 contractors are also being reviewed, which could lead to some contracts being renegotiated or amended.

After rumblings that Phase 2 of HS2 would be resurrected by the new government, Haigh has confirmed it will not restart the development of the line and is instead focussing on the delivery of HS2 between Birmingham and London at the “lowest reasonable cost”.

Transport Secretary Louise Haigh said: “One of my first jobs as Transport Secretary has been to urgently review the position I have inherited on HS2.

“It has long been clear that the costs of HS2 have been allowed to spiral out of control, but since becoming Transport Secretary I have seen up close the scale of failure in project delivery – and it’s dire.

“Taxpayers have a right to expect HS2 is delivered efficiently and I won’t stand for anything less.

“I have promised to work fast and fix things and that’s exactly why I have announced urgent measures to get a grip on HS2’s costs and ensure taxpayers’ money is put to good use.  It’s high time we make sure lessons are learnt and the mistakes of HS2 are never repeated again.”