The Department for Transport (DfT) is addressing significant issues in the High Speed 2 (HS2) project with urgent interventions. These measures come after witnessing years of unsuccessful delivery efforts and rising costs.
- The internal review focuses on curbing spiralling expenses attributed to poor management, inflation, and inefficient supply chains.
- Contracts with key HS2 contractors are under scrutiny, with potential renegotiations or amendments being anticipated.
- The government confirms it will not proceed with Phase 2 of HS2, shifting its primary focus to delivering the segment between Birmingham and London.
- Ministerial oversight will be reinstated to ensure accountability and strategic direction are maintained effectively.
The Department for Transport is undertaking a series of urgent actions aimed at bringing the High Speed 2 project under control, following years of what it describes as ‘failed delivery.’ These steps include a comprehensive independent review to investigate and address skyrocketing costs and inefficiencies. The review is deemed necessary as the cost of Phase One of HS2 has surged, exacerbated by inadequate project management, inflation, and underperformance from the supply chain, without a clear strategy for adherence to budgetary constraints.
Transport Secretary Louise Haigh announced the review shortly after assuming her role in response to inheriting a challenging situation from her predecessors. The review will serve as a vital tool in drawing lessons from ongoing HS2 developments and ensuring that future transport infrastructure projects benefit from enhanced oversight and cost-effective delivery. There is also an emphasis on scrutinising existing contracts with HS2’s main contractors, which may lead to renegotiations to ensure more favourable terms for the client.
In a significant policy declaration, the government has reiterated its decision not to revive Phase 2 of HS2, contrary to circulating reports. Instead, the focus shifts to safely executing the project’s stretch between Birmingham and London at the most economically efficient cost. Transport Secretary Haigh has communicated this priority to HS2 Ltd, underscoring the urgency of the matter.
To bolster the accountability mechanisms within the project, the DfT is reinstating ministerial oversight. This includes regular meetings featuring the transport secretary, the rail minister, and the chief secretary to the Treasury, who will collectively challenge any obstacles to the project’s timely and budget-conscious completion. The move, however, has drawn critique from the Institution of Civil Engineers for what it describes as excessive bureaucratic scrutiny.
Tasked with leading the Major Transport Projects Governance and Assurance Review is infrastructure expert James Stewart, expected to deliver his findings and recommendations during the winter. Simultaneously, HS2 Ltd will undergo a leadership change as Mark Wild, former Crossrail CEO, takes the helm as chief executive. His immediate responsibility will be to assess the current status of the HS2 project and devise a plan that aligns with realistic cost and scheduling parameters.
The DfT’s measures aim to rectify past failures and ensure HS2’s success while safeguarding public funds.
