HS2 chair to step down as costs soar

Sir Jon Thompson

The Chair of HS2 Ltd, Sir Jon Thompson, has announced he will step down from his position in spring after almost four years on the board.

Sir Jon joined the Board of HS2 Ltd as a non-executive director in April 2021 and subsequently was appointed Chair of Britain’s largest rail project in February 2023. Following the resignation of chief executive Mark Thurston, Sir John also took over the running of the firm in September of that year.

Mark Wild, former CEO of Crossrail was named HS2’s new CEO in May, with Wild taking up the post at the beginning of December.

The recruitment of a new Chair will begin shortly.

Transport Secretary Heidi Alexander said: “I want to thank Sir Jon for his work over nearly four years to progress Britain’s largest rail project.

“He has provided strong leadership during challenging times for the project, and we are grateful for his service.

“With the appointment of a new CEO and an incoming new Chair, HS2 will see new leadership next year, tasked with gripping budgets and schedules and delivering the line as cost-effectively as possible for passengers and taxpayers.”

Sir John’s departure comes as costs continue to spiral for the major rail project.

According to documents seen by the Financial Times, costs for the Euston phase of HS2 have risen to more than £7.5bn.

A Department for Transport report revealed on Tuesday, referenced a HS2 interim update to the board in June that put costs at £54bn-£66bn.

However the report says, this “doesn’t take into account this work, or factor in private financing for Euston – which this government is committed to securing – we do not think these figures are accurate or reliable. It remains highly uncertain and subject to further assurance and has not been approved by the HS2 Ltd Board or department but has been included here for transparency”.

New transport secretary Heidi Alexander outlined the government’s hopes for Mark Wild to “identify and lead HS2 Ltd and its supply chain through the essential changes needed to bring costs back under control”.

She said: “To do this, we will be asking him to undertake an assessment of the current position on cost, schedule, capability and culture. This will build on the work that has already begun between officials and at Ministerial level and provide an action plan to deliver the remaining work as cost-effectively as possible, including advising on a realistic budget and schedule”.

An independent review was launched by the former Transport Secretary Louise Haigh in October, to delve into HS2’s spiralling costs and “bring the project back on track”.

Haigh 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”.

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