Recommendations & Conclusions
5 items
1
Conclusion
Seventeenth Report- HS2 Summer 2021
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) and High Speed Two Limited (HS2 Ltd) on the High Speed 2 programme.1 We also took evidence from the West Midlands Combined Authority, the National Infrastructure Commission and …
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On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) and High Speed Two Limited (HS2 Ltd) on the High Speed 2 programme.1 We also took evidence from the West Midlands Combined Authority, the National Infrastructure Commission and the Independent Construction Commissioner HS2 (the Commissioner).
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Government response AI summary
The government acknowledged the committee's summary of the evidence-gathering process, restating who gave evidence and noting that the report was published and this is the government's response.
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HM Treasury
7
Conclusion
Seventeenth Report- HS2 Summer 2021
Acknowledged
Following our evidence session, HS2 Ltd wrote to us and set out the high-level schedule and associated budgets (including contingency) for Phase 1 activities discussed at the session. These are set out in the table below: Phase 1 activity Budget (including Estimated duration of contingency) (£ billion) activity Civil engineering …
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Following our evidence session, HS2 Ltd wrote to us and set out the high-level schedule and associated budgets (including contingency) for Phase 1 activities discussed at the session. These are set out in the table below: Phase 1 activity Budget (including Estimated duration of contingency) (£ billion) activity Civil engineering 15.5 2020–2026 Stations (excluding Euston) 2.7 2021–2028 Euston station 2.6 TBC Systems 3.6 2025 – 2028 Commissioning11 2028 – 2030 The remaining Phase 1 budget is allocated to, or has been spent on, for example the purchase of land and property, enabling works and the purchase of rolling stock.
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Government response AI summary
The government acknowledged the Committee's conclusion regarding the Phase 1 schedule and budgets, stating that the third HS2 6-monthly report confirms cost pressures and contingency use. It committed to maintaining this reporting format for future 6-monthly reports.
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HM Treasury
9
Conclusion
Seventeenth Report- HS2 Summer 2021
Acknowledged
The construction of the main civil engineering components of the programme (such as tunnels and viaducts) is a major undertaking and was a major cause of delays and cost increases at the time of our last report.16 In a letter following our evidence session, HS2 Ltd informed us that it …
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The construction of the main civil engineering components of the programme (such as tunnels and viaducts) is a major undertaking and was a major cause of delays and cost increases at the time of our last report.16 In a letter following our evidence session, HS2 Ltd informed us that it had now contracted all the civil construction work, worth £15.5 billion, of which it had paid approximately £2.5 billion. It told us that the estimated total cost of all four stations for Phase One would be just over £5 billion, and that it had agreed contracts for three of the four stations. As a result, it expected that the construction for Old Oak Common would be £1.67 billion, Birmingham Curzon Street would be £460 million and Euston would be £2.6 billion. It explained that it had not yet agreed a contract for construction at Birmingham Interchange but expected this to cost in total between £350 million and £500 million. HS2 Ltd told us that it estimated that railway systems will cost a total of £3.6 billion. Although some of the smaller systems contracts, such as the tunnel safety doors, had already been procured, HS2 Ltd told us that railway systems was the part of the programme where most procurement was outstanding. HS2 Ltd told us it planned to procure the larger systems contracts, such as track, electrification, signalling and controls, in the next two years. HS2 Ltd estimated the cost to purchase the trains (rolling stock) would be around £1.6 billion. The Department and HS2 Ltd told us that they hoped to award the contract to design and build the trains later in 2020.17
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Government response AI summary
The government acknowledged the Committee's conclusion regarding the programme's costs and contracts, stating that the third HS2 6-monthly report details cost pressures and contingency use. It committed to maintaining this reporting format for future reports.
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HM Treasury
14
Conclusion
Seventeenth Report- HS2 Summer 2021
Acknowledged
The Department acknowledged that Euston is a “very urgent and immediate challenge”. HS2 Ltd similarly noted that decisions on the final options are time-bound, and that it was concerned that the programme will “literally run out of time”.33 HS2 Ltd explained that it was setting up Old Oak Common as …
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The Department acknowledged that Euston is a “very urgent and immediate challenge”. HS2 Ltd similarly noted that decisions on the final options are time-bound, and that it was concerned that the programme will “literally run out of time”.33 HS2 Ltd explained that it was setting up Old Oak Common as the terminus for the railway when it first opens to decouple the delivery of this element of the programme from the risk of Euston.34 In our 2020 report we pointed out that Euston is an important transport hub and business area, so ensuring minimal disruption and developing the site in a way that benefits all stakeholders will be crucial..35
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Government response AI summary
The government acknowledged the Committee's concerns regarding Euston, reporting a decision to move to a smaller, simpler 10-platform design for the station. The updated design is under development, and the department is exploring greater integration with Network Rail, with further details to follow.
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HM Treasury
15
Conclusion
Seventeenth Report- HS2 Summer 2021
Acknowledged
We asked the Department what assurances it could give that whatever happened at Euston, it would not affect the delivery of the programme overall.36 The Department provided us with details of the assurance process it follows more broadly on the High Speed 2 programme, including lines of assurance within HS2 …
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We asked the Department what assurances it could give that whatever happened at Euston, it would not affect the delivery of the programme overall.36 The Department provided us with details of the assurance process it follows more broadly on the High Speed 2 programme, including lines of assurance within HS2 Ltd, the Department and the ministerial taskforce. The Department also told us that it has separated out its work on Euston from that on the rest of the programme, due to a specific set of issues related to Euston, and that the delivery of Euston Station is now overseen by a separate body—the Euston Partnership—which is chaired by Sir Peter Hendy and is made up of representatives from, for example, HS2 Ltd, Network Rail, the London Borough of Camden, the Greater London Authority and Transport for London.37 Integrating the various elements of the programme
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Government response AI summary
The government acknowledged the conclusion by providing an update on the decision to move to a smaller, 10-platform design for Euston Station, confirming it is in development and will be assured, and that the Euston Partnership continues to explore integration opportunities.
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HM Treasury