Recommendations & Conclusions
23 items
2
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
The Department has made little progress on the design and delivery at Euston since we last reported, and we remain concerned that time is running out. Euston station is a key element of the programme both as the London terminus for High Speed 2 and a link to existing railway …
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The Department has made little progress on the design and delivery at Euston since we last reported, and we remain concerned that time is running out. Euston station is a key element of the programme both as the London terminus for High Speed 2 and a link to existing railway network and London Underground. We raised concerns over the lack of clarity of the design and delivery of Euston station in our May 2020 report, but the Department has made no final decisions 6 HS2 Summer 2021 since then. The redevelopment of Euston station is currently estimated to cost £2.6 billion. Despite HS2 Ltd telling us last year that the design of the station was ready for planning consent, the Department has spent the past 15 months looking for cost saving options and efficiency opportunities, including the potential for a smaller station. HS2 Ltd asserts that it is getting close to the point where the programme will literally run out of time if a decision is not made soon, and that Old Oak Common is being set as the London terminus when the railway first opens to decouple it from the risks at Euston. The Department recognises that Euston is a very urgent and immediate challenge and expects to report on progress in autumn 2021. We recognise the benefits Euston provides, such as redevelopment opportunities around the station, as well as its complexity in being built at a busy operational railway in a city centre location, but the uncertainty of this part of the programme is substantial. This impacts businesses, passengers, residents and other industry stakeholders. This uncertainty needs to be resolved urgently, and the Department needs to ensure appropriate assurance has been completed on the decisions taken on the design and delivery arrangements. Recommendation: The Department should set out in its next 6-monthly report to Parliament: • the decisions that it has made about Euston; • details of the assurances it has undertaken; • its timeline on when remaining decision points will be
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Government response AI summary
The government agreed, stating it has moved to a smaller 10-platform design for Euston, as detailed in its third 6-monthly report, and confirmed funding for integration with Network Rail, with further details and assurance processes to be provided in the next report.
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HM Treasury
3
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
HS2 Ltd has started planning how it will integrate its systems for Phase One to ensure the railway works, but this is an inherently risky part of the programme. We previously raised concerns that, given the scale of the programme and its future impact on the rail network, if the …
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HS2 Ltd has started planning how it will integrate its systems for Phase One to ensure the railway works, but this is an inherently risky part of the programme. We previously raised concerns that, given the scale of the programme and its future impact on the rail network, if the Department does not give enough attention to managing the interdependencies within HS2 and other rail programmes, passengers and services would suffer. In addition to the stations and infrastructure, HS2 needs to ensure that railway systems can work together in order for services to run. HS2 Ltd is attempting to avoid the Crossrail experience of failing to integrate the various systems required to operate the railway. HS2 Ltd is starting to plan its approach to integration of systems early and has proposed a delivery approach which would incentivise alliances between contractors. HS2 Ltd recognises that this approach is bold and complex and has not been undertaken in the railways before, although there are examples in the oil and gas sector. The systems required to operate the railway in Phase One will not be installed and tested until the late 2020’s. However, procurements on the parts of the programme that are integral to the successful integration and operation of the railway are underway. Smaller contracts, such as tunnel safety doors, have already been procured, and larger contracts, such as track, electrification and signalling, are expected to be procured over the next two years. Recommendation: HS2 Ltd must continue to monitor and report on both progress and the time allocated to systems integration as part of the regular 6-monthly updates to Parliament, and inform the Committee promptly if the time allocated to these latter stages is at risk of being squeezed. HS2 Summer 2021 7 When it has announced the winner of its competition for the rolling stock contract, HS2 Ltd should write to the Committee to explain how the design and delivery of the train will support the integration of th
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Government response AI summary
The government agreed to continue providing regular updates on systems integration in 6-monthly reports and committed to writing to the Committee by Summer 2022, after the rolling stock contract is awarded and design is underway, to explain how the train design supports system integration.
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HM Treasury
4
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
We are increasingly concerned that the Department and HS2 Ltd do not yet know how they will turn the benefits promised from High Speed 2 into a reality, including what additional investments will be needed or how these will be funded. The Department claims that High Speed 2 is a …
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We are increasingly concerned that the Department and HS2 Ltd do not yet know how they will turn the benefits promised from High Speed 2 into a reality, including what additional investments will be needed or how these will be funded. The Department claims that High Speed 2 is a catalyst for investment, jobs and growth but also acknowledges that it needs to focus on making sure that the programme achieves what is intended. The Department needs to turn those intentions into a plan that brings together local authorities, the private sector and other Departments. There are some examples of the Department encouraging private sector investment, such as £50 million announced in the Budget for development around the Birmingham Interchange station, and the programme’s promise of regional job creation. However, despite hearing that pockets of activity to realise benefits is happening, we are concerned the Department does not yet have an integrated programme to delivering these benefits. We are disappointed to hear that local jobs are not being created in the numbers expected. Realising the benefits for the Midlands and the North is dependent on removing the uncertainty around the outcome of the integrated rail plan. Recommendation: The Department and HS2 Ltd should write to the Committee within three months, describing their strategy to identify, monitor and evaluate the benefits of the programme. The Committee will monitor what progress has been made against this when we next revisit High Speed 2.
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Government response AI summary
The government agreed with the recommendation and confirmed the department wrote to the Committee in November 2021 to outline its benefits approach. HS2 Ltd will also publish its first bi-annual Benefits Update and a joint Benefits Management and Evaluation Strategy next year.
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HM Treasury
5
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
The Department and HS2 Ltd are not adequately engaging with the Department for Education to secure the skills required for the future of the programme and training the next generation of skilled workers. We have repeatedly raised concerns that the Department and HS2 Ltd did not have the skills or …
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The Department and HS2 Ltd are not adequately engaging with the Department for Education to secure the skills required for the future of the programme and training the next generation of skilled workers. We have repeatedly raised concerns that the Department and HS2 Ltd did not have the skills or capability they needed now or in the future to successfully deliver the programme. The Department and HS2 Ltd have repeatedly failed to convince us that their plans to secure the future skills and capability needed are enough. In 2016, HS2 Ltd and the Department told the previous Committee that the National College for High Speed Rail would be crucial in training people in the skills required for High Speed 2 and other infrastructure projects. The college has since become the National College for Advanced Transport & Infrastructure and, most recently, merged with the University of Birmingham. The Department admits that the performance of the college has been disappointing and hopes that its latest merger, new leadership and new curriculum from September 2021 will be an opportunity to get the best out of the arrangement. Yet the Department’s involvement with the college has been limited as it falls under the Department for Education’s accountability remit. We are disappointed in this lack of engagement, as it is in the Department’s strategic interests to have a strong relationship with the college and ensure it provides the skills and curriculum High Speed 2 and other infrastructure projects need. Recommendation: The Department must proactively engage with the Department for Education and other relevant education providers to ensure there are plans 8 HS2 Summer 2021 in place for further education colleges to get the through-flow required for the programme. The Department should write to us to explain how it is engaging with these stakeholders within three months.
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Government response AI summary
The government agreed and reported that the recommendation had been implemented, stating the department wrote to the Committee in November 2021 detailing its proactive engagement with DfE and other education providers, and outlined HS2 Ltd's skills strategy and support for the NCATI merger.
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HM Treasury
6
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
We are already concerned about the volume of complaints on disruption from the programme which does not bode well for the future as more communities will be impacted as construction progresses. HS2 Ltd estimates it has handled 124,000 queries over the past three years and interacted with over 76,000 people …
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We are already concerned about the volume of complaints on disruption from the programme which does not bode well for the future as more communities will be impacted as construction progresses. HS2 Ltd estimates it has handled 124,000 queries over the past three years and interacted with over 76,000 people along the route. It is engaging with the supply chain, its contractors and local MPs to help inform communities about its work. However, the number of complaints from the public about High Speed 2 has increased as main construction on Phase One has started. Complaints to the Independent Construction Commissioner HS2 rose to 86 in the first quarter of 2021 from 74 in the previous quarter. The majority of complaints are about the impact of construction on roads and traffic, vegetation clearance and about noise and vibration. Due to the scale of the programme and the time until the railway is complete, complaints are likely to increase as the programme progresses. It will be critical for HS2 Ltd to develop a way of embedding the lessons it has learned into its day-to-day processes, so that mistakes from Phase One are not repeated in Phase Two, and that community engagement and environmental concerns are more proactively addressed by the company. Recommendation: The Department and HS2 Ltd should write to the Committee within three months setting out how they intend to resolve the issues around community engagement and the environment observed by the Committee in this report. HS2 Summer 2021 9 1 Progress with Phase One delivery
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Government response AI summary
The government agreed with the recommendation and confirmed the department wrote to the Committee in November 2021 detailing efforts to resolve community engagement and environmental issues. It highlighted a decline in complaints, establishment of construction inspectors, and plans to publish an Environmental Sustainability Progress Report.
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HM Treasury
8
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Government’s latest range of estimated costs for Phase 1 is £35–45 billion (2019 prices).12 For Phase 2a the range is £5.2–7.2 billion (2019 prices). The latest updated 6 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusions …
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The Government’s latest range of estimated costs for Phase 1 is £35–45 billion (2019 prices).12 For Phase 2a the range is £5.2–7.2 billion (2019 prices). The latest updated 6 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusions 1 and 2; para 6; HM Treasury, Treasury Minutes, CP 270, July 2020 7 Qq 5–6 8 Qq 5, 15, 17 9 Written statement to Parliament, HS2 6-monthly report to Parliament: March 2021, 23 March 2021 10 Q 10 11 HS2 Ltd told us that the two-year commissioning period does not have a separate cost attached as it is time- based cost for the combination of contractors involved. The work includes systems integration and dynamic testing, leading into the trial operations of both the rolling stock and stations. 12 Written statement to Parliament, HS2 6-monthly report to Parliament: March 2021, 23 March 2021 HS2 Summer 2021 11 forecast range for opening Phase 2a for services is 2030–2034.13 The Department told us that it expected the cost range and the schedule range for Phase 2a to be set in 2023.14 The current cost range for Phase 2b is £32–46 billion (2019 prices), meaning that the full railway could cost as much as £98 billion.15
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Government response AI summary
The government agreed with the committee's implied recommendation regarding cost reporting, stating that the third HS2 6-monthly report to Parliament already confirms cost pressures and contingency use in a tabular format. Future reports will continue to follow this consistent format.
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HM Treasury
10
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
In our 2020 report we recommended that the Department publish regular reports on progress to Parliament, including a realistic appraisal of the programme’s likelihood of delivering to budget and schedule.18 HS2 Ltd and the Department reported £0.8 billion in cost pressures in their most recent update to Parliament in March …
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In our 2020 report we recommended that the Department publish regular reports on progress to Parliament, including a realistic appraisal of the programme’s likelihood of delivering to budget and schedule.18 HS2 Ltd and the Department reported £0.8 billion in cost pressures in their most recent update to Parliament in March 2021.19 We therefore asked what they were doing to finalise and manage cost pressures to ensure that the programme kept within its revised budgets. HS2 Ltd told us that these cost pressures were from three areas: Euston station; enabling works, including additional costs from the diversion of utilities; and, civil construction contractors. It told us it was looking for ways to mitigate and offset them. HS2 Ltd explained that it had an efficiencies programme and had found savings and opportunities totalling £200 million, mostly for civil construction such as bulk purchase of fencing and security.20 HS2 Ltd noted that it was rare that cost pressures were a surprise, as it identified and tracked potential cost risks early on, but that it was being vigilant about when contingency would be released to cover these cost pressures.21 We asked the Department and HS2 Ltd how much additional costs the programme had incurred as a result of the COVID-19 pandemic. HS2 Ltd explained that it would be difficult to “unstitch the true Covid-related costs” but that at the end of 2020 13 Letter from DfT to the Chair, 16 June 2021 14 Q 98. 15 Written statement to Parliament, HS2 6-monthly report to Parliament: March 2021, 23 March 2021 16 C&AG’s Report, High Speed 2: A progress update, Session 2019–20, HC 40, 24 January 2020, Figure 7; Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020 17 Qq 1, 13, Letter from Mark Thurston to the Chair, 13 July 2021] 18 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 1 19 Qq 86–87; Written st
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Government response AI summary
The government accepted the recommendation, confirming that its third 6-monthly report to Parliament details cost pressures and contingency use in tabular form. It committed to maintaining this reporting format in all future 6-monthly reports.
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HM Treasury
11
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
Euston station is a key element of HS2 and will be an important transport hub and business area, with potential opportunities for economic regeneration at the wider site. It is intended to be the London terminus of the High Speed 2 programme, providing links to the existing railway, London Underground …
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Euston station is a key element of HS2 and will be an important transport hub and business area, with potential opportunities for economic regeneration at the wider site. It is intended to be the London terminus of the High Speed 2 programme, providing links to the existing railway, London Underground and other transport links.23 The build at Euston is complex, with the site positioned at a busy existing railway station in a dense city centre.24 It is currently expected to open between 2031 and 2036, a range which, the Department told us, was purposely wide to take account of the decisions the Department still needs to be made on its design and delivery.25
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Government response AI summary
The government states it has agreed with and implemented the recommendation regarding Euston station, detailing decisions to move to a simpler 10-platform design and approved funding for greater integration between HS2 and Network Rail stations through The Euston Partnership.
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HM Treasury
12
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
In our May 2020 report, we raised our concerns over the huge uncertainty remaining for Euston station, specifically the lack of clarity around the station build. The Department and HS2 Ltd told us at the time that although the design of Euston was ready for planning consent, they were looking …
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In our May 2020 report, we raised our concerns over the huge uncertainty remaining for Euston station, specifically the lack of clarity around the station build. The Department and HS2 Ltd told us at the time that although the design of Euston was ready for planning consent, they were looking into more cost-effective solutions for the station. We recommended that the Department should write to us within six months of our report to provide us more detail of its plans, including how it would be delivered.26 When the Department responded in November 2020, it stated work was ongoing to develop an optimised design and delivery strategy to address cost pressures, with any changes expected in spring 2021.27 In its update to Parliament in March 2021, the Department and HS2 Ltd flagged cost pressures of £0.4 billion relating to Euston station, and noted that work to consider opportunities, efficiencies and scope reductions was underway.28 We therefore asked the Department about what progress it had made on Euston. It told us that “some progress” had been made, such as consideration of designs for a smaller station and improved integration with the work of Network Rail, but that a final design had not been agreed. When we pressed the Department to commit to a timeframe for final decisions on the design and delivery, it informed us it hoped to report back on a design for the station by its next six-monthly update in autumn 2021.29
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Government response AI summary
The government accepted the recommendation, reporting a decision to move to a smaller, simpler 10-platform design for Euston station. It also noted that funding was approved to support greater integration with Network Rail, with further details expected in the next 6-monthly report.
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HM Treasury
13
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Department detailed some of the work it has been undertaking since early 2020 to find cost savings at Euston. This included: a review of the proposed tracks and tunnelling at Euston, which confirmed the existing approach was justified; an assessment of the station design, which might lead to a …
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The Department detailed some of the work it has been undertaking since early 2020 to find cost savings at Euston. This included: a review of the proposed tracks and tunnelling at Euston, which confirmed the existing approach was justified; an assessment of the station design, which might lead to a smaller station being built in a single stage; and, opportunities for further integration with Network Rail, such as sharing entrances to the London Underground and combining construction programmes.30 The Department 22 Qq 93–95 23 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 4 24 Q 40; Note dated 30 November 2020 from Department for Transport; Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 4 25 Qq 45–46 26 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 4, para 18 27 Note dated 30 November 2020 from Department for Transport, High Speed 2: Spring 2020 update, Third Report of Session 2019–21 – recommendation 4 – Euston update 28 Written statement to Parliament, HS2 6-monthly report to Parliament: March 2021, 23 March 2021 29 Qq 40–43 30 Q 40 HS2 Summer 2021 13 told us that it had also set up a Euston Partnership Board to bring together HS2 Ltd, Network Rail, the London Borough of Camden, Greater London Authority, Lendlease and Transport for London to agree the plan for Euston. The Department intended for the Board to bring together the right stakeholders to make the “right trade-offs”.31 The Department told us the Board had brought extra momentum and impetus to the work at Euston and had helped to resolve some problems, although we noted final decisions are still outstanding, with a planning decision on Euston expected in September 2022.32
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Government response AI summary
The government reported that it has moved to a smaller, simpler 10-platform Euston station design, which is in development. It is continuing to explore integration opportunities and optimise oversite development, with further details to be provided in the next 6-monthly report.
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HM Treasury
16
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The High Speed 2 programme has many interdependent elements, including stations, infrastructure and railway systems. We raised concerns in our previous report that, given the scale of the programme and its future impact on the rail network, if the Department does not give enough attention to managing the interdependencies within …
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The High Speed 2 programme has many interdependent elements, including stations, infrastructure and railway systems. We raised concerns in our previous report that, given the scale of the programme and its future impact on the rail network, if the Department does not give enough attention to managing the interdependencies within the programme and other rail programmes, passengers and other services could suffer.38 From Crossrail, we have also seen the problems that can arise from poor integration of railway systems, and the delays and cost increases that this can cause.39 In our report on the programme 31 Qq 5, 40 32 Q 53; Letter from Department to Committee, 13 July 33 Qq 5, 49, 50, 57 34 Q 55 35 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 4 36 Q 55 37 Qq 5, 82 38 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, para 6 39 Qq 22–23; Committee of Public Accounts, Crossrail: progress review, Ninety-Second Report of Session 2017–19, HC 2004, 3 April 2019, paras 15, 22; C&AG’s Report, Crossrail – a progress update, Session 2021–22, HC 299, 9 July 2021, para 13 14 HS2 Summer 2021 in 2021, we found that Crossrail had suffered delays and cost increases as a result of the failure to effectively install and integrate and integrate the systems required to operate the railway.40
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Government response AI summary
The government states it agrees with the committee's recommendation and considers it implemented, noting that procurements for remaining rail systems packages are underway and will continue over the next two years, with regular updates provided.
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HM Treasury
17
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Department recognised two primary risks in relation to railway systems: the physical practicalities of different contractors working on the ground together; and, systems not integrating effectively.41 We asked HS2 Ltd how it planned to avoid the issues with railway systems experienced on the Crossrail programme. HS2 Ltd told us …
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The Department recognised two primary risks in relation to railway systems: the physical practicalities of different contractors working on the ground together; and, systems not integrating effectively.41 We asked HS2 Ltd how it planned to avoid the issues with railway systems experienced on the Crossrail programme. HS2 Ltd told us that in its capacity as system integrator, it had undertaken work to develop a reference design on which the work of all systems contracts should be based, and had been engaging with the Crossrail team.42 HS2 Ltd explained that the contracts to design and install to the railway systems will include performance requirements for the systems to ensure the systems integrate.43 HS2 Ltd explained that it will include a “last responsible moment” in the contracts to ensure there is a point where the system design can no longer change, to avoid new designs causing delays.44 HS2 Ltd told us that it expected the building work needed for integrating railways system to be ready by 2027, and for most of the systems to have been designed by then, so it would “be very much getting into systems installation from the late 2020s”.45 We asked whether it had the continuity of people needed to do this. HS2 Ltd told us that it expected some of its current railway systems team to remain in place through to the delivery stages of the programme for continuity, but also intended to transfer people with suitable skills from its civil construction teams. It explained that it had consulted with “all the big global contractors that can do this work” about this approach and their response had been positive that this was “the only way you can really do this”. The Department told us that it had examined HS2 Ltd’s approach and that it was satisfied that the approach it was adopting was the best one and a sensible model. It also told us that HS2 Ltd had set up a panel of external experts to support it on integration the railway systems.46
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Government response AI summary
The government agreed with the committee's implied recommendation, stating that procurements for rail systems packages are underway and will continue. The department committed to providing regular systems updates and will write to the Committee about train design and system integration once the rolling stock contract …
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HM Treasury
18
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
HS2 Ltd recognised that the integration of railway systems would be crucial and explained that it planned to establish a collaborative alliance amongst the main railway systems contractors to encourage them to work together to deliver the integrated systems. Although HS2 Ltd’s pre-contract market engagement found suppliers to be receptive …
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HS2 Ltd recognised that the integration of railway systems would be crucial and explained that it planned to establish a collaborative alliance amongst the main railway systems contractors to encourage them to work together to deliver the integrated systems. Although HS2 Ltd’s pre-contract market engagement found suppliers to be receptive to this approach, it also admitted this was a “bold” and “complex” approach.47 It told us this approach had not been used in the railway sector before, but there were examples from other sectors of bringing together multi-party collaborative contracting, such as the oil and gas industry. We asked HS2 Ltd about the risks arising from this new approach, including how it would manage any potential legal challenges between the companies involved. HS2 Ltd assured us that it was committed to learning the lessons necessary from Crossrail and was working with the team responsible to identify how best to do this. It explained that discrete contracts also presented issues with legal challenge, interface risk between contracts, integration of systems and capability. It told us that taking a collaborative approach meant that it had a much better change of managing these interdependency risks 40 C&AG’s Report, Crossrail – a progress update, Session 2021–22, HC 299, 9 July 2021, para 13 41 Q 36 42 Qq 22–23, 32 43 Q 7 44 Q 37 45 Q 16 46 Qq 34–37 47 Qq 22–23 HS2 Summer 2021 15 and may be able to avoid the “knitting together” of contracts, as was being experienced on Crossrail. It told us that given all the work it had done at this stage, it was confident as it could be about its approach.48 48 Qq 30–32 16 HS2 Summer 2021 2 Delivering the promised benefits and improving community engagement Delivering the benefits promised
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Government response AI summary
The government agreed with the committee's implied recommendation, stating that procurements for rail systems packages are underway and will continue. The department committed to providing regular systems updates and will write to the Committee about train design and system integration once the rolling stock contract …
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HM Treasury
19
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Department and HS2 Ltd have repeatedly promised that High Speed 2 will bring about a wide range of benefits that go beyond the increase in capacity and reduction of journey times on routes between major cities. These promised benefits include jobs, economic growth, investment and regeneration. The Department told …
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The Department and HS2 Ltd have repeatedly promised that High Speed 2 will bring about a wide range of benefits that go beyond the increase in capacity and reduction of journey times on routes between major cities. These promised benefits include jobs, economic growth, investment and regeneration. The Department told us that High Speed 2 was not just a railway, but a “catalyst for investment, jobs and growth”, and that the strategic case for High Speed 2 depends on these promised economic benefits.49
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Government response AI summary
The government states it has agreed with and implemented the recommendation regarding HS2 benefits, detailing actions such as a letter to the committee, HS2 Ltd publishing a bi-annual Benefits Update, and working towards a joint Benefits Management and Evaluation Strategy.
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HM Treasury
20
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
Both the Department and the West Midlands Combined Authority provided examples of how cities and regions that stand to benefit from High Speed 2 have ambitious plans for how to capitalise on the opportunity that High Speed 2 provides. For example, the development of public transport links in Birmingham and …
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Both the Department and the West Midlands Combined Authority provided examples of how cities and regions that stand to benefit from High Speed 2 have ambitious plans for how to capitalise on the opportunity that High Speed 2 provides. For example, the development of public transport links in Birmingham and Wolverhampton, and the construction of new housing in Birmingham City Centre. The Department told us that there were examples of where benefits realisation work was happening, but that its next step was to develop a “programmatic” approach to bringing together government departments, local authorities and private developers to ensure that the benefits were realised.50
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Government response AI summary
The government agrees with the recommendation and states it is implemented. HS2 Ltd will publish a bi-annual Benefits Update and the department, with HS2 Ltd, is working towards a joint Benefits Management and Evaluation Strategy next year to maximise benefits and coordinate with other departments.
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HM Treasury
21
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
The creation of thousands of jobs is central to the Department and HS2 Ltd programme’s case for building the railway. The Department told us that the growth strategies of Greater Manchester and the West Midlands envisaged that the programme would bring up to 180,000 and 100,000 job respectively, plus around …
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The creation of thousands of jobs is central to the Department and HS2 Ltd programme’s case for building the railway. The Department told us that the growth strategies of Greater Manchester and the West Midlands envisaged that the programme would bring up to 180,000 and 100,000 job respectively, plus around 65,000 jobs expected at Old Oak Common. It recognised, however, that it now needed to turn these expectations into a reality. While jobs created by investment in the areas that will benefit from the railway are promised to materialise once the programme is complete, the Department expects that thousands more jobs will be created to support the construction of the railway. It told us that so far HS2 Ltd had been responsible, through its contractors, for creating around 16,000 jobs, which was expected to increase to around 30,000 at the peak of the programme.51
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Government response AI summary
The government agrees with the recommendation, stating it is implemented, and outlines its benefits approach including future publication of a bi-annual Benefits Update and a joint Benefits Management and Evaluation Strategy next year, focusing on maximising jobs and skills.
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HM Treasury
22
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
The Department and HS2 Ltd asserted that many of the jobs from the programme will go to those who live locally to construction sites. However, the West Midlands Combined Authority told us that of a high number of the jobs promised to be created from work at Delta Junction, just …
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The Department and HS2 Ltd asserted that many of the jobs from the programme will go to those who live locally to construction sites. However, the West Midlands Combined Authority told us that of a high number of the jobs promised to be created from work at Delta Junction, just outside Birmingham, only 35 went to local people. HS2 Ltd told us that these 35 jobs related to a specific job advert issued by one of its contractors.52 We are also mindful of the experience of the London Olympics where the number of real, sustainable jobs for local residents was somewhat overstated by people claiming a local postcode when they were, in practice, moving in and out of the site areas on a weekly 49 Qq 5, 63; Committee of Public Accounts, Progress with preparations for High Speed 2, Fourteenth Report of Session 2016–17, HC 486, 14 September 2016, conclusion 5; Committee of Public Accounts, High Speed 2: a review of early programme preparation, Twenty-second Report of Session 2013–14, HC 478, 9 September 2013, para 4, Q187 50 Qq 5, 63–64; Oral evidence: HS2 recall – pre panel, HC 178, Qq 2–4, 6 51 Qq 63–65 52 Qq 64, 69–71; Oral evidence: HS2 recall – pre panel, HC 178, Qq 53–54 HS2 Summer 2021 17 basis. We asked what lessons the Department and HS 2 Ltd had taken from this and how it would ensure that communities benefit from the programme. HS2 Ltd told us that it was doing some work on postcode tracking and had asked suppliers to evidence how they were assuring themselves that local opportunities were truly local.53
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Government response AI summary
The government agrees with the recommendation and states it is implemented, outlining a benefits approach for HS2 to maximise positive outcomes for communities, including through a bi-annual Benefits Update and a joint Benefits Management and Evaluation Strategy next year.
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HM Treasury
23
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
We asked the Department about the private sector investment that would be needed as part of delivering the benefits expected from the programme. The Department told us that it had started to take steps to encourage private sector investment to ensure these were delivered. For example, it was working with …
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We asked the Department about the private sector investment that would be needed as part of delivering the benefits expected from the programme. The Department told us that it had started to take steps to encourage private sector investment to ensure these were delivered. For example, it was working with the Ministry of Housing, Communities and Local Government and the Old Oak and Park Royal Development Corporation on their investment plans and the government had announced £50 million in the Budget to support development around Birmingham Interchange station to allow more land for development and regeneration. However, the Department conceded that the sooner it could provide certainty around its integration rail plan and what is expected for the rest of the rail network, the more helpful it would be to ensure that the investment that it expected to stimulate happened in practice. The Department did not commit to a date on which the integrated rail plan will be published but could only say that it will be published “soon”.54
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Government response AI summary
The government accepted the implicit need to demonstrate benefits and encourage private investment, confirming it wrote to the Committee outlining its benefits approach. It committed to HS2 Ltd publishing a bi-annual Benefits Update and the department working towards a joint Benefits Management and Evaluation Strategy …
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HM Treasury
24
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
HS2 Ltd described the work it was doing to protect the environment as the “untold story” of the programme. It stated that there would be no net loss to biodiversity from phases 1 and 2a, and that there could be a net gain to biodiversity from Phase 2b. HS2 Ltd …
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HS2 Ltd described the work it was doing to protect the environment as the “untold story” of the programme. It stated that there would be no net loss to biodiversity from phases 1 and 2a, and that there could be a net gain to biodiversity from Phase 2b. HS2 Ltd provided examples of work it was doing to minimise its environmental impact. It told us that it had already planted 700,000 trees and bushes and plans to develop a ‘green corridor’ with around 7 million trees and shrubs and four square kilometres of land for wildlife. We look forward to the publication of the first environmental sustainability report for High Speed 2, which should provide an opportunity for HS2 Ltd to clarify the impact of the programme on the natural environment.55 Ensuring the skills to deliver
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Government response AI summary
The government states that HS2 Ltd's first Environmental Sustainability Progress Report will be published to clarify the programme's environmental impacts, alongside a refreshed environmental sustainability vision.
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HM Treasury
25
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
Ensuring that enough people with the right skills and capability are available to the High Speed 2 programme at the right time is critical to its success. In reports from 2013, 2016 and 2020, both this and our previous Committees have highlighted the importance of skills and capability, and concerns …
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Ensuring that enough people with the right skills and capability are available to the High Speed 2 programme at the right time is critical to its success. In reports from 2013, 2016 and 2020, both this and our previous Committees have highlighted the importance of skills and capability, and concerns with the Department’s progress in this area.56 The Department is responsible for a substantial investment programme, including Highways England’s and Network Rail’s investment in the strategic road network and the existing railways respectively, and forthcoming projects from the integrated rail plan, as well as High Speed 2.57 The National Infrastructure told us that addressing the skills shortage in the infrastructure sector should be a continuous focus for government.58 We asked HS2 Ltd whether it was confident that it had the skillset that it needed to complete High Speed 53 Qq 72–73 54 Qq 60–63 55 Qq 78 - 79 56 Committee of Public Accounts, High Speed 2: Spring 2020 update, Third Report of Session 2019–21, HC 84, 17 May 2020, conclusion 3; Committee of Public Accounts, Progress with preparations for High Speed 2, Fourteenth Report of Session 2016–17, HC 486, 14 September 2016, conclusion 4; Committee of Public Accounts, High Speed 2: a review of early programme preparation, Twenty-second Report of Session 2013–14, HC 478, 9 September 2013, conclusion 6 57 Q 116 58 Q 69; Oral evidence: HS2 recall – pre panel, HC 178, Qq 45–46, 48 18 HS2 Summer 2021 2 to the timetable and budget that had been set. HS2 Ltd replied that it was confident but not complacent and that there was increased demand for skills in construction from, for example, house building projects. HS2 Ltd told us that it was making good progress with its apprenticeships programme and that it was working with government and industry to ensure that the right supply of skills was available. HS2 Ltd also noted that the workforce for later phases of the programme, such as the installation of systems needed to ope
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Government response AI summary
The government agrees with the recommendation to proactively engage with education providers for HS2 skills, confirming actions taken include writing to the committee, HS2 Ltd's Skills, Employment and Education strategy, and ongoing engagement with DfE, ESFA, and FE colleges.
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HM Treasury
26
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Department and HS2 Ltd told our previous Committee in 2016 that the National College for High Speed Rail would be crucial in training people in the skills required to successfully construct High Speed 2 and other infrastructure projects. For example, at the time of our evidence session in 2016, …
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The Department and HS2 Ltd told our previous Committee in 2016 that the National College for High Speed Rail would be crucial in training people in the skills required to successfully construct High Speed 2 and other infrastructure projects. For example, at the time of our evidence session in 2016, there was a contractual requirement for HS2 Ltd’s civil construction contractors to train around 2,000 apprentices in the college.60 However, the Department admitted that the story of the College had to date been a disappointing one. It told us that the College had now merged with the University of Birmingham as the National College for Advanced Transport & Infrastructure. It said that it was confident that its new, broader remit, a new curriculum from September 2021, and new leadership gave it an opportunity to get the best out of the college.61
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Government response AI summary
The government agreed with the committee's implied recommendation for proactive engagement with education providers, confirming the department wrote to the Committee in November 2021. It detailed existing strategies, engagement with the ESFA, and ongoing work to support colleges along the HS2 route.
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HM Treasury
27
Conclusion
Seventeenth Report- HS2 Summer 2021
Accepted
The Department explained that it was not, and had never been, directly responsible for the college as this fell under the remit of the Department for Education. It explained that it’s detailed involvement in the college had been limited and that this had “been a bit of a challenge”. It …
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The Department explained that it was not, and had never been, directly responsible for the college as this fell under the remit of the Department for Education. It explained that it’s detailed involvement in the college had been limited and that this had “been a bit of a challenge”. It similarly noted that it had limited conversations with the University of Birmingham about the college, but confirmed that it had been involved in discussions with the Department for Education about the merger. It recognised, however, that it was within its strategic interests to have a really strong relationship with the college and ensure that it is providing skills and the curriculum that were needed.62 Engagement with communities
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Government response AI summary
The government agreed with the committee's implied recommendation for proactive engagement with education providers, confirming the department wrote to the Committee in November 2021. It detailed existing strategies, engagement with the ESFA, and ongoing work to support colleges along the HS2 route.
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HM Treasury
28
Recommendation
Seventeenth Report- HS2 Summer 2021
Accepted
HS2 Ltd told us that the nature of the High Speed 2 programme means that the work required for it will be disruptive. HS2 Ltd estimated it had handled 124,000 queries over the past three years and interacted with over 76,000 people along the route.63 The Independent Construction Commissioner HS2 …
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HS2 Ltd told us that the nature of the High Speed 2 programme means that the work required for it will be disruptive. HS2 Ltd estimated it had handled 124,000 queries over the past three years and interacted with over 76,000 people along the route.63 The Independent Construction Commissioner HS2 (the Commissioner) told us that the complaints the programme had received so far had mainly been about disruption to roads and traffic, vegetation clearance and noise and vibration from construction activity.64 With delivery of the main civil engineering projects on Phase One only formally beginning during 2020, both HS2 Ltd and the Commissioner told us that the volume of complaints was already increasing, but that this was inevitable.65 Complaints to the Commissioner rose to 86 in the first quarter of 2021 from 74 in the previous quarter.66 The Commissioner told us that while current volumes were unsatisfactory, the scale of the programme and the number of communities it impacted meant the programme was likely to generate large 59 Qq 69–71 60 Committee of Public Accounts, Progress with preparations for High Speed 2, Fourteenth Report of Session 2016–17, HC 486, 14 September 2016, para 13 61 Qq 65–66, 116 62 Qq 66–69, 116 63 Qq 104, 108 64 Oral evidence: HS2 recall – pre panel, HC 178, Q 20 65 Q 108; C&AG’s Report, para 1.3; Oral evidence: HS2 recall – pre panel, HC 178, Q 24 66 Independent Construction Commissioner, Seventeenth report: Quarter One 2021, page 2 HS2 Summer 2021 19 number of complaints, and that volumes of complaints were likely to continue to increase as the programme developed and more communities were affected. It explained that HS2 Ltd’s complaints system was so far working “extremely well” and that 90% of issues were resolved within the 20 working-day timetable. The Commissioner also told us it will be important to have a lessons learned process fully embedded in the programme, so lessons are shared between Phase One and Phase Two and mistakes are not rep
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Government response AI summary
The government accepted the recommendation and confirmed it had already written to the Committee as requested, detailing efforts on community engagement and the environment. It highlighted a decline in complaints and committed to publishing an Environmental Sustainability Progress Report and a refreshed environmental sustainability vision.
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HM Treasury