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The UK Transport Secretary on Wednesday admitted that the High Speed 2 railway line is facing a new cost overrun, and its completion will be further delayed in a few years as it attempts to blame the previous conservative government for its non-control.
Heidi Alexander tells lawmakers that he over-snatched the controversial rail line by signing the contract when the last administration signed it, spending £2 billion on the north leg of the project to cancel it.
She also cites the allegations that “part of the supply chain is fraudulent on taxpayers.” This will be investigated as quickly as possible. HS2 previously admitted to launching an investigation into allegations that one of its suppliers had claimed an over-inflation rate for workers.
“Billions of pounds of taxpayer money is wasted due to constant scope changes, ineffective contracts and bad management,” says Alexander. “It’s a horrible mess, but that’s what we’ll sort out.”
The original price tag for the scheme was £30 billion in 2010 for the line that connected London, Manchester and Leeds and was scheduled to open by 2026.
The Financial Times revealed in December that its latest estimate for 2024 prices is £800 billion. The latest estimate for completion was 2033, but is now expected to slip in the mid or late 2030s.
On Wednesday, Alexander will announce the results of a review of the scheme by Mark Wild, CEO of HS2 Ltd.
Wild, authorities concluded that the project cannot be achieved with the latest schedule or existing budgets, but has yet to provide new estimates for prices.
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HS2 was originally envisaged by the then labor government before 2010. In 2021, Prime Minister Tory Boris Johnson x link to Leeds amid spiral costs and delays. Two years later, his successor, Rishi Snack, decided to cancel the line to Manchester.
Alexander informs MPS that the Johnson administration has been advised in 2020 by the Occultive Review to renegotiate a major contract and enter into more, but the contract remains signed.
She also claims that Tory Minister commissioned two sets of designs to Euston Station.
The Minister also argues that the “Minister Euston’s Task Force” established by SUNAK did not hold a meeting.
Alexander announces that former London Department of Transport Commissioner Mike Brown has appointed HS2 Ltd’s new chairman, replacing John Thompson.
She also publishes the results of a separate review of the scheme of James Stewart, former chairman of KPMG’s infrastructure advisory, allowing her to learn broader lessons from the HS2 big failure.
Stewart’s report identified “abilities and skills deficits with fundamental lack of trust” for HS2 Ltd and The Department for Transport.
His report laid out 89 recommendations, including HS2 changing the contract to ensure that providers deliver within budget and on time. “The lessons learned will end the UK era as a laughing stock in the delivery of large infrastructure projects,” said one labor aide.
Alexander will also set measures to enhance “surveillance and accountability” for the project.
The government will detail how it will advance Euston Interchange, which connects HS2 to London’s transport network with its expected 10-year infrastructure strategy on Thursday. Prime Minister Rachel Reeves announced that in the fall budget he will fund the necessary tunnel work.
Alexander promises to update the council on HS2’s future progress in his six-month report.
