The Secretary of State for Transport has announced new measures that will control the cost of delivering HS2, whilst getting the project back on track.
Over a number of years, the cost of delivering the first phase of the high-speed rail line has increased thanks to poor project management, inflation, and poor supply chain performance. With this in mind, an independent review has been launched by the Transport Secretary to establish the action that would be required to bring the costs back under control, whilst making sure that lessons are learned.
The Major Transport Projects Governance and Assurance Review will feed its recommendations back to the government in the winter, being led by senior infrastructure delivery advisor, James Stewart. The main focus of the review will be to investigate the oversight of major transport infrastructure projects, including forecasting and reporting of costs.
A review is also being conducted into the incentives of the main HS2 contractors, this has the potential to see some contracts being renegotiated or amended.
In order to support the delivery of the first phase of HS2, the government has also taken the decision to restore ministerial oversight of the project, with this ensuring greater accountability through regular meetings that will see the Transport Secretary, Rail Minister and Chief Secretary to the Treasury challenging delivery and removing obstacles.
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 to be 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.”
The previous government was responsible for the cancellation of the second phase of the HS2 line – connecting Birmingham and Manchester – and, despite rumour of its resurrection, the government has confirmed that it will not be bringing back that leg of the journey. The government has, however, recognised that there are concerns around connectivity between the North and the Midlands.
Image credit: HS2 Ltd
