Transport Secretary says mistakes of HS2 must never be repeated

Transport Secretary Louise Haigh has launched an independent review into the cost of HS2 and how to bring the rail project back on track.

Emphasising that it is not resurrecting Phase 2 between Birmingham and Manchester, which was cancelled under the previous administration, the focus is the delivery of HS2 between Birmingham and London at the lowest reasonable cost.

Haigh highlighted the extent of the challenge inherited on HS2. “It has long been clear,” she said, “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.”

The government is also reinstating ministerial oversight of the project to ensure greater accountability. This will see regular meetings starting immediately, where both the Transport Secretary and Rail Minister, Lord Hendy, alongside the Chief Secretary to the Treasury, will challenge delivery and remove obstacles to securing the full benefits of the railway more cost effectively.  

The Major Transport Projects Governance and Assurance Review will be led by senior infrastructure delivery adviser, James Stewart, and will present recommendations back to the government this winter. 

It will investigate the oversight of major transport infrastructure projects, including the effectiveness of forecasting and reporting of cost, schedule and benefits, as well as actions to deliver cost efficiencies. The review will primarily draw on experiences of HS2 to date to ensure recommendations and learnings are applied to its delivery as well as to future projects.

Separately, the incentives of the main HS2 contractors are also being reviewed, which could lead to some contracts being renegotiated or amended.

The management of HS2 will shortly be taken over by a new Chief Executive, Mark Wild, who has an extensive background in delivering transport projects and will be responsible for resetting the project.

On his arrival, the Transport Secretary will task him with assessing the current position on cost, schedule and culture, and providing an action plan to deliver the remaining work as cost effectively as possible, including at a realistic budget and schedule.