A new report in which the PAC slams the HS2 project has been released, calling for further interventions to attempt to bring some value.
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The Public Accounts Committee has published a report lambasting the HS2 project as ‘a litany of failures and unheeded warnings’
The report, titled HS2: Update following the Northern leg cancellation, has been published today.
The initial line in the summary: “The High Speed Two (HS2) programme has become a casebook example of how not to run a major project”, highlights the tone of the report.
PAC slams HS2 project for costs and uncertainty
The report highlights that the Department for Transport (DfT) and HS2 Ltd disagree on the costs of Phase 1 of the project, with the DfT estimating £45-54bn, while HS2 estimate £54-66bn.
The report also states that, with inflation taken into account, the total cost for the programme could reach as high as £80bn.
Criticism is also aimed at how Euston station is being handled with its re-development. In spite of the need to redevelop the station after changes to the project, there is still not plan for work for the station, the existing Network Rail station, the underground station, or the commercial and housing developments nearby. Clarity is also needed on the funding for Euston station’s work, as the government says the work will be privately funded but with no detail on how.
The recently reported-on bat tunnel issue was also caught in the fire, with criticism stating that the issue caused that specific section of track to be more than doubled in cost to around £100m. In spite of this, the committee report says that the balance between protecting the landscape and wildlife and the burden the costs put on taxpayers has not been struck.
“We expect to see a real improvement when we next examine this matter”
Sir Geoffrey Clifton-Brown MP, chair of the Public Accounts Committee, said: “Our Committee has not made recommendations in our report on delivering better outcomes for HS2’s future passengers. We are long past that point. It is time to deal with HS2 as what it is – a cautionary tale that should be studied by future governments in how not to run a major project. We are sceptical of Government’s ability to successfully deliver even a curtailed scheme, one which we already know will on its face bring very poor value for money. The question has instead become: what possible benefit can the Government now salvage for the taxpayer, from a mess that presents real risks to the UK’s overall reputation?
“This Committee has scrutinised HS2 since its inception. Our report lays out a catalogue of warnings proceeding from that scrutiny which, if heeded, may have brought about a different outcome. Both DfT and HS2 Ltd. must now begin the hard work of making this project the best possible version of itself in the circumstances, while swiftly addressing the needs of those impacted by decisions made under this scheme who are still waiting for answers. The government must now look to future, and deliver on its responsibilities to Parliament and the wider public – through the lens of its accountability to the PAC.
“It is ultimately the Department of Transport that has failed to manage this enormous project and manage HS2 properly. This is likely to have wasted billions of pounds of taxpayers money in delays and overspends. The department as well as resetting the project must now reset itself to manage this project to a workable conclusion in line with the eventually agreed budget and timescale. To do this they will need to employ people with the correct range of skill sets to critically supervise and oversee this huge project. This is the only way to salvage its severely tarnished reputation. We expect to see a real improvement when we next examine this matter.”
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