The transport secretary has dismissed suggestions that HS2 is set to cost the public purse up to \u00a366bn.<\/p>\n
An estimate made by officials at HS2 Ltd in June that the entire line would cost between \u00a354bn and \u00a366bn was neither \u201caccurate or reliable\u201d, Heidi Alexander said in a written statement to parliament.<\/p>\n
This is because HS2 Ltd did not take into account the cost reductions due to private funding for Euston Station.<\/p>\n
In the Labour government\u2019s first six-monthly update to parliament on HS2, Alexander said that the June update had been rejected by the HS2 board and Department for Transport (DfT).<\/p>\n
The minister said she had now ordered HS2 to rework the estimate to drive down costs.<\/p>\n
The minister warned: \u201cIt is important that we take definitive action now and act with common purpose across government, HS2<\/abbr>\u00a0Ltd <\/abbr>and its supply chain to get HS2<\/abbr> delivered cost effectively.\u201d<\/p>\n The June figure was a rise on the \u00a349bn to \u00a357bn estimate made in November 2023.<\/p>\n Alexander admitted that project cost increases had been driven by factors including Covid and high inflation. But she also criticised elements of the project management. \u201cThere have also been significant delivery issues, including cost underestimation with large increases in design costs and lower-than-planned productivity,\u201d she said.<\/p>\n Alexander remained coy on a timeline for completing the redevelopment of Euston station, and the stretch of HS2 from Birmingham to Handsacre Junction.<\/p>\n But she said the first services between Birmingham Curzon Street and Old Oak Common were still scheduled to start running some time between 2029 and 2033.<\/p>\n The minister also revealed there were now more than 31,000 people and 3,300 UK firms working directly on the project.<\/p>\n Earlier this month, Mark Wild \u2013 the former boss of Crossrail \u2013 started his tenure as the new HS2 chief executive, following his appointment in May<\/a>.<\/p>\n The DfT has asked Wild to carry out \u201can assessment of the current position on cost, schedule, capability and culture\u201d at HS2, Alexander said.<\/p>\n \u201cUntil Mark Wild concludes this work, the government cannot be confident in the forecast outturn cost of the project,\u201d she said.<\/p>\n