Government announce key change to tackle 'spiralling' HS2 costs
The government has moved to deny rumours that HS2 will continue 'beyond Birmingham' and announced ministers will now oversee the building of the high-speed rail to tackle 'spiralling costs'. Transport Secretary Louise Haigh this week announced the measures to bring the cost and delivery of HS2 'back under control.'
Ms Haigh has also ordered an independent review into phase one of HS2 line project between Birmingham, Solihull and London describing the delivery of the project as 'dire.' In the announcement made this week, ministers will now meet regularly with HS2 representatives to explore how the project can be carried out more 'cost effectively.'
The government also denied reports, which emerged last week, that the scrapped Phase 2 of the project between Birmingham and Crewe could be back on the table saying it had been 'clear' the line would not be resurrected. The Government has put 'spiralling' HS2 costs down to 'poor project management, inflation and poor performance from the chain', with warnings that the overall spend for HS2 could amount to more than £65 billion.
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Ms Haigh said that she, Rail Minister Lord Peter Hendy and Chief Secretary to the Treasury Darren Jones would now hold regular meetings on progress and costs with HS2 Ltd, with reports published every six months to ensure accountability and transparency. An independent review will also be held to ensure 'lessons are learnt' from the 'failed' project.
Transport Secretary 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."
In the annoucement, the goverment said it had been 'clear' that it was not resurrecting Phase 2 of HS2, which was cancelled under the previous Conservative government. It comes after LBC reported that the Prime Minister was poised to announce the high-speed rail would extend to Crewe - known as Phase 2a.